A. M. The Legislative Assembly approved reforms to the Law of Ley del Fondo de Inversión Nacional en Electricidad y Telefonía (FINET), with the purpose of expanding the scope of subsidies and guaranteeing greater access to electricity and telephony in rural and low-income areas. With 57 votes, the deputies endorsed that the Ministry of Finance will assume the administration of the fund, through the General Directorate of Subsidies.
The modifications respond to the dissolution of Fondo de Inversión Social para el Desarrollo Local (FISDL), previously in charge of managing FINET. The Treasury will now also be empowered to make budgetary and financial adjustments to ensure the sustainability of the benefits.
As part of the reforms, the Fondo de Mitigación del Sector de Energía (FMSE) is created, which will be financed with a one-time transfer of up to US$80 million from the Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL). This fund seeks to support compliance with the electricity sector’s obligations.
The Dirección General de Energía, Hidrocarburos y Minas will be responsible for defining guidelines, authorizing disbursements, and supervising the use of FMSE resources. It will also have the power to issue mandatory guidelines for distribution companies.
FINET will have to report monthly on FMSE operations and balances, as well as keep the funds in an exclusive account that generates interest and allows for transparent auditing.
These reforms strengthen the country’s legal and financial structure to ensure that subsidies reach more salvadoran families, with significant economic support aimed at maintaining the stability of the energy system.
