Electricity transmission a major problem for Panama

ELECTRICITY transmission is one of the most serious problems in Panama today, said President Ricardo Martinelli on Thursday May 2.

Martinelli said that Panama is lagging behind in terms of power transmission, and that is as serious as the problems facing public transportation.

He said that the the blackout caused by the fire in Coclé that knocked out transmission towers showed how fragile the current system is.
''You look at what happened with the fire, now imagine that the system is overloaded," he said.
Questioned whether there is a need to ration power due to a lack of rainfall, Martinelli said that the issue is a concern.
"We have a very serious problem with transmission and next month the government will be seeking bidding for a new transmission line," he said.
The lack of rainfall is a temporary problem that can be addressed by alternating schedules of working hours to reduce the demand on the electricity supply.
Martinelli said he has asked Secretary of Energy Vicente Prescott to discuss the issues of high prices, saying he has taken steps to eliminate the practice of purchasing power on the "spot market," which is more expensive. He also said that the country will need to further rely on hydroelectric power in the future, and that there needs to be a stop to the campaign against the projects.
"There  is an abuse  of the Panamanian people by the electric companies charging an excessively high rate," Martinelli said. "We need to foster increased competition that has changed the energy matrix."

The next government he said will see a substantial reduction in electricity rates as a result of his policies and building a gas-powered plant "will put a real competition on prices."
On the Barro Blanco hydroelectric plant construction, Martinelli said that "outside interests" are leading the protests against the work.
"I hope that the agreement made by the Minister [of Government Jorge Ricardo] Fabrega can be respected, but I think that outside interests are preventing that construction," Martinelli said.
He said that there are "other players" in the electricity business who do not want more competition. The president said that he will direct the National Authority of Public Services to analyze the issues.