The National Public Services Authority (Asep) of Panama announced on Tuesday, October 21, that it has imposed fines totaling $18.5 million on three electricity distribution companies for failing to meet legally mandated service quality standards. The penalized firms are Ensa, Edemet, and Edechi, and the fine money will be returned directly to their customers as credits on future power bills.
According to an official statement from the regulatory body, the sanctions are the result of 10 separate administrative processes initiated between 2019 and 2022. These cases were reviewed and ultimately resolved by the current Asep administration in August 2024. The investigations covered various service failures, including prolonged power interruptions, voltage fluctuations, and other quality of service assessments.
Substantial Fines Allocated to Each Power Distributor
The $18.5 million in total penalties were distributed among the three utility companies based on the severity and extent of their respective service violations. Edemet received the largest fine of $13,522,920.17. Edechi was fined $4,270,831.50, and Ensa was penalized $780,321.00. The Asep emphasized that the collection process for these fines is underway.
Asep Administrator Zelmar Rodríguez stated that the enforcement action underscores the agency’s commitment to holding utility providers accountable. He framed the decision as a direct benefit for Panamanian citizens who experienced substandard electrical service.
“No Panamanian should pay for a deficient service. When quality standards are not met, the companies must answer. Asep is on the side of the citizens,” said the administrator of the entity, Zelmar Rodríguez. [Translated from Spanish]
Rodríguez further clarified that the primary goal of these sanctions is consumer protection and regulatory compliance, not merely punishment. He explained that the financial penalties are designed to translate into tangible relief for affected customers.
“Each fine must become a real benefit for the people. We are demonstrating that the law is being enforced and that the country’s energy can be managed with justice,” said Rodríguez Crespo. [Translated from Spanish]
Legal Mandate and Broader Enforcement Context
The regulatory action is grounded in Panama’s Law 6 of 1997, which legally obligates electricity distribution companies to provide a continuous and high-quality service. This law explicitly authorizes Asep to monitor, sanction, and demand compensation for utility providers when they fail to comply with the established provisions.
This recent enforcement is part of a broader crackdown by Asep within the country’s energy sector. The authority reported that since July 2024 alone, it has applied more than $39 million in sanctions across the electrical industry, signaling a more aggressive stance on utility regulation and consumer rights enforcement.
The decision reflects the government’s increased focus on public services regulation and accountability for essential services. For further details on consumer rights and utility standards, you can review information on the Panamanian consumer protection authority website.