A PYMNTS Company

Panama: Warning over possible energy monopoly

 |  September 7, 2015

Panama’s energy sector has expressed concerns over energy generator AES and its proposal for a thermoelectric energy contract with Panama’s Empresa de Transmisión Eléctrica (ETESA). The 350 MW contract, should it be awarded to AES, would give them a dominant position in the sector and allow them to freely manipulate energy prices, and eliminate a ‘level playing field.’

Jorge Castellanos, General Manager of IPPCO, has expressed concerns over three specific aspects of ETESA’s contest: The viability of their starting date; their dominance over the market sector, and other minor operation issues.

“We consider it a mistake to go forward with the assignment of projects which claim to offer the best prices, but which appear to not be 100% viable in a logistical and technical sense. We are also concerned with a company that will take a dominant position in this market, establishing a virtual monopoly over the sector”, said Mr. Castellanos.

Source: Panamá América

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.