Tuesday, 19 July 2022 15:28

Salvadorans will have a relief due to decrease in residential electricity tariffs

Written by Evelyn Alas

From friday, july 15 until october 14, salvadorans will have an economic respite, due to a decrease in residential electricity tariffs, as confirmed by the Superintendencia General de Electricidad y Telecomunicaciones (SIGET).

The decrease of this rate is being effective since last friday july 15, that is to say that the price per kilowatt/hour decreases between US$0.35 or 2%.

According to SIGET, this significant decrease is possible because the abundant rains have made it possible for the generation to be done through hydroelectric and geothermal equipment which contributes 40% of the energy injected in the second quarter of 2022. Also, another factor that helped the decrease in the previous quarter was that President Nayib Bukele promoted a reform to freeze the electricity tariff for three months in case it suffers increases due to increases in fuel prices and inflation.

Until last january the price of energy accumulated 4 consecutive increases mainly due to the increase in the price of oil, a material used for bunker plants in El Salvador, which represent more than 19.9% of the generation matrix.

Likewise, the President of the Defensoría del Consumidor, Ricardo Salazar, affirmed that the electric energy tariff has been stabilized and in this next quarter it will have a decrease, it is important that it does not continue to increase.

From april to july of this year, the average price of energy to be transferred to the tariff was US$144.34 MWh and from july to october it will be US$143.13 MWh, a slight reduction that allows maintaining the current prices.

A key factor in achieving price stability has been the increase in hydroelectric power generation, which has doubled, allowing for the injection of 28.13% of total energy in the second quarter of this year, compared to 14.78% in the first quarter.