Politics & Government

Salvadoran Entrepreneurs Criticize Withdrawal of Electricity Subsidy

Topics::

Salvadoran Industry Association, Napoleón Guerrero, Salvadorean Association of Private Enterprise, Federico Colorado, Electricity, Subsidies, energy subsidy, production cost, operation costs, Electricity tariffs, Government, Energy

Source: elsalvador.com
Wednesday, March 25, 2009

Industrialists and entrepreneurs have criticized the abrupt elimination of the electricity subsidy by the government.
The Government of El Salvador had committed to a reduction of the subsidy in parts, the last reduction to be made made in October 2009. This benefit applied to consumption of more than 99 Kw/h. However, it was announced yesterday that it would not be able to continue with it, and that the regular rate would be charged beginning this month.

Both the Chamber of Manufacturers and the National Association of Private Enterprise criticized the measure stating, according to what was published in elsalvador.com, that it will generate an increase in costs which will eventually be transferred to the end consumer: "An increase of 7% in the production of the industry ,... the production costs to businesses could be [increased] somewhere between 0 and 5%," and in special cases "... the increased cost would range between 15 to 50%, in the cement industry for example."

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