New energy rates from May remain stable despite rising oil prices

Home Business New energy rates from May remain stable despite rising oil prices
New energy rates from May remain stable despite rising oil prices

The new electricity rates for the quarter from May 1 to July 31 were set by the National Electric Energy Commission (CNEE), an entity that states that, Despite the situation with significant variations in fuel costs in international markets, rates remain stable.

These are the social and non-social rates for users of the distributors Empresa Eléctrica de Guatemala, SA (EEGSA) and Energuate, which remain in the line of stability observed in the last four years, adds the CNEE.

These come into effect on May 1.

In the social rate segment for EEGSA users, it remains unchanged at Q1.42 per kilowatt hour (kWh) per month, in the same way as that of Deorsa, it remains at Q1.98.

That of Deocsa stands at Q2.04, with a drop of Q0.01 (one cent).

In this case, users who consume up to 100 kilowatt hours per month sThey are subsidized according to the consumption ranges established by the National Institute of Electrification (INDE).

For non-social rate users, the rate in EEGSA also remains the same, with Q1.51 per kWh per month, and in Deorsa for this quarter it is Q2.06.

While in Deocsa it drops Q0.02 (two cents), to Q2.13.

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It should be taken into account that, apart from the energy rate, the user must pay other charges on the bill, such as the distributor’s service charge, the public lighting rate — which is different in each municipality — and 12% of the value added tax (VAT).

Analyzed costs

As explained by the CNEE, the base rates were updated for the next seasonal year, which includes the period from May 1, 2026 to April 30, 2027.

In this process, the real costs of power and electrical energy purchases were reviewed, which were paid during the months of January, February and March 2026 by each distributor.

Based on these costs, the corresponding adjustments were made to the electricity rates that will be applied in the quarter from May to July.

Among the variables that affect is the aforementioned calculation of new base rates; The generation costs corresponding to existing contracts were updated and new contracts were incorporated, including those derived from the bidding processes for long-term PEG-4 contracts carried out in 2023.

The costs analyzed also include the price of fuel..

The Minister of Energy and Mines, Víctor Hugo Ventura, said in March that he was analyzing whether the situation of rising international oil prices, derived from the conflict in the Middle East between the United States and Israel with Iran, which has been recorded since that month, would affect electricity rates.

Now the CNEE argued in its quarterly adjustment bulletin, reported on April 29, that, despite the current context that has presented significant variations in fuel costs in international markets, rates remain in the line of stability observed in the last four years.

It is added that the fluctuations in the registered electricity rates have been slight and that they respond to the normal dynamics of electricity purchase prices, and states that these variations are associated with factors such as: the evolution of international prices of fuels used for generation, the seasonality of a relevant part of the generation matrix, macroeconomic variables and the progressive incorporation of new supply contracts that contribute to guaranteeing the continuity of service to users, details the CNEE.

Also last March, Luis Ortiz, president of said Commission, said that no increase in electricity rates was expected, since there are long-term contracts signed by the distributors, in addition to the fact that the rain that occurred in the country during the summer had helped in the levels of generation with hydroelectric plants.

Meanwhile, on April 29, Ortiz indicated that In the country, electricity is generated with various resources with a diverse generation matrixand that for example, although the price of oil (and its derivatives) has increased, the prices of other fuels have remained stable, such as natural gas in the United States, as well as Colombian coal, in addition to the fact that there are long-term contracts to supply generation to distributors, which helps with stability.

“In the current context, characterized by variations in short-term energy prices, the current regulatory framework allows the signing of long-term contracts, which contribute to guaranteeing continuity of supply and mitigating price volatility, favoring stable and competitive tariff conditions for users,” says the quarterly adjustment bulletin issued by the CNEE.

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