Panama debates electricity market reforms to protect consumers

The National Authority of Public Services (ASEP) has expressed support for a government proposal to reform Law 6 of 1997, which regulates Panama's electricity market. The proposal, which recently passed its first debate in the National Assembly's Commission on Commerce and Economic Affairs, aims to modernize market rules, strengthen oversight, and protect consumer rights.

Key aspects of the reform include reducing timelines for resolving consumer complaints, applying bill credits for service quality failures, and strengthening compensation mechanisms for damages caused by power fluctuations. The reform also seeks to promote competition, efficiency, and transparency within the sector.

A significant component of the proposed legislation, identified as Bill 705, includes a provision to prevent market concentration. It would prohibit electricity generation companies and their owners from seeking new licenses or concessions if they already meet or could directly serve more than 30% of the national electricity consumption through other means.