Nicaragua : Energy Sector Policy Note, Executive Summary
The increase in oil prices has created a growing economic pressure in Nicaragua. The electric power industry, especially, has generated controversy, because electricity prices have not kept pace with the costs of production. The situation at the be...
Main Author: | |
---|---|
Format: | Policy Note |
Language: | English en_US |
Published: |
Washington, DC
2014
|
Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2012/01/16383425/nicaragua-nota-de-politica-energetica-vol-2-2-energy-sector-policy-note-executive-summary-final http://hdl.handle.net/10986/18373 |
Summary: | The increase in oil prices has created a
growing economic pressure in Nicaragua. The electric power
industry, especially, has generated controversy, because
electricity prices have not kept pace with the costs of
production. The situation at the beginning of 2006 was
clearly unsustainable, and the entry of a new government
provided an opportunity to refresh the vision of the sector,
and address the problems. The objective of this note is to
provide a balanced approach, taking into account both the
short-term and long-term prospects of the sector, together
with the lessons learned in similar situations. The
questions facing the sector relate to its financial
situation, the legal framework, the patterns of use of
energy in Nicaragua, access and coverage of electric power,
and its fiscal impact. Possibly the most important
recommendation is to attenuate the disagreements with the
government and seek areas of cooperation to improve the
conditions of service. This should involve a quantification
of the financial losses, and an operational audit to
determine the status of implementation of their obligations
to agents, investors, and customers. |
---|