Cabinet authorizes bill presentation to correct electricity market deficiencies

Panama's cabinet has authorized the presentation of a bill to the National Assembly aimed at correcting deficiencies in the electricity market and strengthening consumer protections. The initiative, approved via Resolution No. 83-26, responds to persistent complaints regarding the quality of electrical service, including frequent voltage fluctuations, service interruptions, and damage to household appliances.

The proposed legislation seeks to rectify shortcomings in customer service, compensation, and indemnification mechanisms, which have been a significant point of contention for citizens. It introduces stricter rules for future contracts, requiring distribution companies to provide greater transparency, adhere to defined timelines for addressing claims, and issue credits for non-compliance with quality standards.

A notable aspect of the bill is the drastic increase in penalties, with service providers potentially facing fines of up to $20 million for violations. The National Authority of Public Services (ASEP) will also gain the power to intervene in companies during corrective actions, contract resolutions, or license terminations. An appointed administrator, paid by the provider, would oversee interventions and be barred from professional or commercial ties with the intervened company or its affiliates for two years.

Furthermore, the bill mandates that distributors modernize the system by implementing smart grids and improving measurement systems. It also makes the electrification of unserved, unprofitable, and unconcessional rural areas an inherent obligation of distribution activities. ASEP General Administrator Zelmar Rodríguez indicated that approximately 150,000 families currently without electricity could gain access to the service. The proposal also adjusts competition rules to prevent market concentration.

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Now funding for other things that they may need, I have no problem with that.