Panama government advances bill to improve national electricity service

Panama's government has approved a draft law designed to overhaul the nation's electricity service, addressing years of customer complaints about unreliable supply. The bill, greenlit by the Cabinet Council, will be sent to the National Assembly for approval.

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strengthen the current regulatory framework and reverse the systematic deterioration in the quality of electrical supply

The initiative seeks to "strengthen the current regulatory framework and reverse the systematic deterioration in the quality of electrical supply" across the Central American nation. The presidency stated that customers have endured frequent voltage fluctuations and service interruptions, causing damage to electrical equipment.

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during the last decades, customers have faced constant incidents such as voltage fluctuations and frequent service interruptions, which have caused damage to electrical equipment and appliances

To combat these issues, the proposed law enhances user rights and distributor obligations. It also includes provisions for greater transparency in customer information. Key changes involve setting deadlines for addressing customer complaints and ensuring that fines levied against distribution companies are effectively collected and passed on to the affected consumers.

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In response to this reality, the Executive reinforces, through this legislative initiative, both the regime of user rights and the obligations of the distribution companies, also incorporating provisions aimed at ensuring greater transparency in the information provided to customers

The legislation also prepares the ground for increased competition as distribution concessions are renewed in 2028. It strengthens quality and continuity standards, enabling the system to better prevent, monitor, and respond to service interruptions. Panama's electricity distribution is managed by three companies: Elektra Noreste (ENSA), owned by Colombia's EPM, and Edemet and Edechi, both subsidiaries of Spain's Naturgy. These firms operate under a mixed-ownership model, with EPM and Naturgy holding 51% stakes, and the remainder split between the state and employees.

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the modifications include defined deadlines for handling complaints and that the fines imposed on companies are made effective and that these resources reach the affected customer