Government to provide $32 million to prevent electricity tariff increases for 76% of consumers

Panama’s government will allocate about $32 million to prevent higher electricity bills for most consumers after new tariffs take effect on September 1, 2026.

The Cabinet approved Resolution 110-26, creating a temporary system of additional contributions to the Electricity Tariff Stabilization Fund, known as the FET. The measure adds a new provision to a 2015 Cabinet resolution and authorizes the National Authority for Public Services, or ASEP, to implement the mechanism.

Under the arrangement, distribution companies will apply credits to the bills of final customers, including large customers, between September 1 and December 31, 2026. The state will use the additional FET to reimburse distributors for the value of those credits.

ASEP administrator Zelmar Rodríguez said the government had taken measures so that customers would not feel an impact on their electricity bills during the period. The new tariff schedule will still enter into force, but the stabilization mechanism is intended to keep most users from paying more. The resolution also sets out a framework for future six-month tariff updates to reduce the effect of electricity-sector costs on consumers.

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The government of President José Raúl Mulino has taken the necessary measures so that no customer feels an impact on their electricity bills, thereby establishing a subsidy. This measure will take effect from the September billing through December 31, 2026.