El Salvador guarantees the stability of energy prices

The average electricity rate paid by Salvadorans will remain stable for the period from October 15, 2022 to January 14, 2023, thanks to a greater participation of renewables in the energy matrix, in which hydroelectric and geothermal, informed the General Superintendence of Electricity and Telecommunications (Siget).

The stability in the electricity rate has materialized since January of this year through an action implemented by the government of President Nayib Bukele, this being a relief for the economy of thousands of households.

In accordance with article 90 of the regulations of the General Electricity Law, the electricity rate must be adjusted every three months: January, April, July, and October.

It should be noted that the government has promoted 11 measures that seek to reduce the effects of inflation, and one of the specific benefits has been the stability of the electricity rate, despite the increase in the international prices of fuels used for electricity generation. electric power.

“As of this October 15, 2022, and for the next three months, users can rest assured that the price of energy will not change. This measure responds to a series of actions implemented by the government of President Nayib Bukele for more than six months with the aim of minimizing the impact of inflation,” said Siget’s superintendent, Manuel Aguilar.

For the adjustment corresponding to October of the current year, the megawatt hour will maintain its price of $143.13, which represents a relief for the economy of 1.9 million people, including all Salvadoran families, commerce, and industry nationwide.

The institution noted that in July of this year, when the adjustment corresponding to that month was made, the average price of the electricity rate experienced a reduction, and in the following three months, prices will stabilize.

To achieve price stability, the increase in hydroelectric power generation has been key. Between July and September of this year, it has managed to inject 48.44% of energy into the matrix, almost double what was generated in the second quarter, which was 28.13%, according to data from the Superintendency.

Likewise, the institution indicated that the participation of thermal generation based on liquid fuels has had a strong reduction due to the increase in non-conventional renewable plants and natural gas, thus diversifying the national energy matrix.

On the other hand, the government reported that it maintains the electricity subsidy for all households that consume less than 105 kilowatt hours (KWh) per month and the Superintendence continues to work for the benefit of the population.

“The government has determined to continue with the measures to mitigate the conditions that cause an increase in the price of energy to be passed on to all end users. This will be a mechanism that allows the current rate to be stabilized and does not allow any variation in energy, distribution, and commercialization charges.” Manuel Aguilar, superintendent of Siget.