The INDE rejects debt forgiveness for electric companies

2024-08-24 18:45:30

National Institute of Electrification (INDE) rejected the proposal from the Municipal Affairs Commission of the Republican Congress, which sought to forgive debts of more than Q3 billion for six Municipal Electricity Companies.

What you should know. According to the INDE, on Friday, August 23, he expressed his firm position against the measure, arguing that companies have already collected funds for services provided to users and redirect them for other purposes .

• They stressed that this decision would foster a culture of non-payment and harm Rural Electrification projects, limiting the capacity of the one national institution tasked with expanding access to electricity in underserved areas. If approved, the most affected departments would include Huehuetenango, Alta Verapaz, Baja Verapaz, Quiché and Petén in municipalities with less than 90% electricity coverage.
• The entity also pointed out that such a measure would harm the Social Rate Contribution, which is essential for the majority of the Guatemalan population, limiting future developments in energy generation. Citing Article 1 of the Constitution, the INDE asked the Plenary of Congress to consider the common good and reject the initiative.
• For their part, the mayors concerned argued that the debts are inherited from previous administrations, accumulated decades ago and are not currently payable, which hinders investment in necessary maintenance. Juan Fernando López, mayor of Quetzaltenango, highlighted the unsustainable burden of this debt that dates back to 1978, criticizing the high interest rates imposed by the INDE.