Government allocates $65.8 million to stabilize electricity rates, preventing increases for low-consumption customers

The Panamanian government has allocated B/.65.8 million (approximately $65.8 million) to stabilize electricity tariffs, aiming to shield low-consumption customers from potential price increases. The Cabinet Council approved state contributions to the electricity tariff stabilization funds, ensuring that discounts applied to customers using less than 300 kilowatt-hours (kWh) per month remain in effect.

This financial injection, detailed in Cabinet Resolutions No. 92-26 and No. 93-26, directs B/.21,952,409.81 to the Western Tariff Fund (FTO) and B/.43,841,643.82 to the Tariff Stabilization Fund (FET). These funds compensate electricity distribution companies for discounts provided during the first half of 2026 to residential customers on simple low-voltage tariffs.

The FTO specifically targets customers in areas like Bocas del Toro and Las Tablas, benefiting around 183,000 customers, representing 99% of residents in Chiriquí and Bocas del Toro. The FET covers the rest of the country, supporting approximately 930,000 customers served by EDEMET, ENSA, and EDECHI. The FET's primary goal is to maintain stable energy prices for these consumers by using public funds to offset the discounts.

The Ministry of Economy and Finance (MEF) is authorized to manage these transfers to ETESA, which acts as the fiduciary for both funds. This initiative aims to prevent the costs associated with the first half of 2026 discounts from being passed directly onto the bills of low-consumption users, thereby maintaining affordability.