Electricity price hike follows construction delay

The upcoming increase in the electricity tariff that is expected to be applied to customers who consume more than 300-kilowatt hours will be announced in a public forum on  Thursday, July 6.

The increase is put down to the delay in completing the third transmission line of the Electric Transmission Company, (Etesa).

The project, which started in 2014 and not in 2009, as established by the electric expansion plan,

will end up costing close to $380 million, about $146.2 million 38% more than the original price of $233.8 million awarded to Odebrecht in 2013 for $ 233.8 million. Odebrecht has been the construction darling of three successive governments and has been the center of corruption scandals across Latin America.

Thes additional costs have to do, to a large extent, with extra money that has had to be paid to generation companies that could not transport energy to the consumption centers without a third line.

Investments in electricity transmission and distribution works, as is the case with the third line, are finally assumed by the clients in the payment of the tariff. The State tries to ease the effect of the hike through the disbursement of subsidies.

It is estimated that in the second semester the State will end up paying $40 million in subsidies for customers who consume less than 300-kilowatt hours a month, while are those who use above that  range, will have an increase, details of which will be announced Thursday  by the National Services Authority