The government of Panama presented to the National Assembly a Bill to modify the framework that regulates the public electricity service (Single Text of Law 6 of February 3, 1997), with changes on generation, distribution, energy contracting, access to networks and powers of the National Authority of Public Services (ASEP).
Among the main modifications, no generator may request new licenses or concessions when this implies attending, directly or indirectly, to more than 30% of the national electricity consumption .
The limit will have one exception: it will not apply to new licenses intended exclusively for supplying large-scale operations with specific requirements, such as data centers . The provision thus establishes differentiated treatment for capacity associated with this type of demand.
The proposal also prohibits generating companies and their owners from participating directly or indirectly in the control of distributors.
On the distribution side, companies will not be able to control generation plants that exceed 15% of the demand in their concession area . Nor will they be able to obtain new concessions if this would mean serving more than 50% of the country's customers .
The modifications thus incorporate specific limits on concentration and integration between both segments of the electricity market.
Another change for new projects will be the availability of information about the networks, which will allow developers to know the existing conditions for connecting new projects or large consumption.
The distributors and the Electric Transmission Company (ETESA) must publish the physical condition of the infrastructure, nominal capacity of substations and transformers, technical characteristics of the connection points and available capacity .
ASEP will also regulate the exchange of information between distributors and related companies to prevent privileged data from generating competitive advantages.
The contracting of power and energy will undergo another significant change.
From October 22, 2028 , the distributors will assume the preparation, call, evaluation and award of the competitive acts to contract power and energy, under ASEP regulation.
The initiative also responds to the systematic deterioration of the electricity supply reported by customers, reflected in voltage fluctuations, frequent interruptions, damage to equipment and deficiencies in service, compensation and redress.
The electrification of unserved, unprofitable and non-concessioned rural areas will become an inherent obligation of the distribution activity .
100% of these investments will be recognized as an asset for calculating the Distribution Added Value (DAV), allowing for their recovery within the tariff structure. However, repeated failure to complete rural electrification may result in the early termination of the 15-year concession.
An economic threshold is also incorporated: the contract may be terminated when accumulated tariff reductions, penalties and fines exceed 25% of the total annual revenue billed for distribution during the previous year.
ASEP will be able to intervene in companies and apply fines of up to 20 million
The reform expands the regulatory authority's powers to act in the face of non-compliance and problems with the continuity of supply. Therefore, ASEP will be able to directly intervene in companies providing electricity service for the period necessary to correct serious faults or while the termination of a concession or cancellation of a license is being processed.
The sanctions regime is also being tightened, as fines can reach up to 20 million balboas , for violations or breaches of concession contracts.
Amounts arising from administrative penalties will be passed on to customers through tariff credits within a maximum period of 60 calendar days .
And if a distributor fails to comply with a final judgment, the outstanding amount will generate a surcharge of 2% per month for each month or fraction thereof of delay .
The reconsideration or appeal processes filed by the companies will not suspend the application of economic compensation or tariff reductions for deficiencies in the quality of service.
The distributors, in turn, will have a maximum of 15 days to resolve customer complaints . If they do not respond within that period, the complaint will be considered resolved in favor of the user.
The right to receive credits on the invoice in the event of non-compliance with quality levels is also expressly recognized, once the corresponding resolution has been executed.
For the generation segment, the 30% threshold and its exception for large supplies constitute two of the main modifications of the new scheme .
These provisions are in addition to restrictions on integration with distribution, more information on connection capacity, and changes in the processes of purchasing power and energy.
If the Bill is approved in the terms presented, generators, distributors and developers of large loads will face new conditions to expand investments and operate in the Panamanian electricity market .