The Salvadoran Congress has renewed a decree aimed at benefiting small businesses, entrepreneurs, and consumers who consume up to 300 kWh, ensuring that 93% of end-users will not see an increase in electricity prices.
The decree, approved last night by the Legislative Assembly with 65 votes in favor and 12 abstentions, introduces temporary provisions to safeguard the economy of Salvadoran families.
According to the decree, «users who had an average monthly consumption below 300 kWh in the quarter from January to March will not pay a single cent more for their electricity bill.»
This benefit extends to «Salvadorans who receive subsidies, small businesses, entrepreneurs, and consumers with relatively low consumption.» The implementation of this measure will be overseen by the General Directorate of Energy, Hydrocarbons, and Mines, which will establish the necessary mechanisms to regulate energy prices.
However, the 7% of users consuming above 300 kWh will experience a 23% increase, affecting sectors such as industry, commerce, and large consumers.
Electricity prices are revised every January, April, July, and October, hence the new provision will be effective from April 15, 2024, to July 14, 2024.
During the discussion of the initiative, lawmakers from Nuevas Ideas party explained the complexity of the global economic context regarding energy. «Various political scenarios have triggered energy crises, but the government of El Salvador has provided solutions to ease the burden on the population,» stated Raúl Chamagua, a lawmaker from the cyan party.
«We are creating the necessary mechanisms to ensure that Salvadorans who need it the most do not pay more on their electricity bills. This way, we will be benefiting 93% of users,» reiterated Chamagua.
The congressmen initially approved this measure in October 2023, when the General Superintendence of Electricity and Telecommunications (SIGET) announced an impending price hike. At that time, prices were frozen, avoiding a 9% increase in the bill.
By renewing this decree, the Salvadoran government aims to alleviate the financial strain on its citizens, particularly amid global energy challenges.