Zelmar Rodriguez, the administrator of Panama’s National Authority of Public Services, is confronting systemic service failures in water, electricity, and telecommunications. In a recent interview, Rodriguez detailed her agency’s aggressive regulatory actions, including multimillion-dollar fines against power companies and a concerted push to introduce a third mobile operator by 2026. These moves come amid persistent public outcry over frequent service interruptions that have plagued the country.
The official defended her administration’s record, emphasizing a shift towards stricter enforcement and modernization. She announced that her team is actively drafting a proposed law to comprehensively transform the nation’s electricity sector. This legislative effort aims to address long-standing complaints and improve the overall reliability of essential services for Panamanian citizens and businesses.
To modernize the institution comprehensively, we are providing our officials with the tools they need to perform better oversight through digitalization, automation, and the use of drones. [Translated from Spanish]
Overwhelming Complaints Target Electricity Sector
Data from the regulatory body reveals the sheer scale of public dissatisfaction. The authority fields roughly one thousand formal complaints every single month. A staggering 95 percent of these grievances are directed at the electricity sector. The remaining complaints are split between water services and telecommunications, with telecom issues accounting for a mere one percent of the total volume received by the institution.
This lopsided distribution of complaints highlights a critical pressure point for the economy and daily life. Rodriguez pointed to specific enforcement actions as evidence of her agency’s renewed vigor. She confirmed that multi-million dollar penalties, which had been languishing unenforced, have now been collected from utility companies.
When we arrived, we found a fine of approximately $21 million. The fines had been imposed but not yet enforced; in July 2024, we enforced them, and the companies obviously had to compensate those customers who were affected. [Translated from Spanish]
Subsequent fines totaling 18.5 million balboas were levied in August and November of 2024. One company, Ensa, has already compensated its affected customers. The other companies, Edemet and Edechi, have challenged the penalty in court. Rodriguez stated that her agency is coordinating with them to determine a schedule for issuing credits to customers impacted by poor service between 2019 and 2022.
Water and Telecommunications Face Scrutiny
While electricity dominates the complaint logs, the nation’s water utility has not escaped regulatory attention. Rodriguez indicated that her approach with the National Institute of Aqueducts and Sewers has initially focused on collaboration over punishment. A nationwide inspection of water and sanitation infrastructure uncovered treatment plants suffering from severe neglect and little to no maintenance.
The current director of the water institute inherited an institution grappling with profound operational challenges. The regulator is now working directly with the utility to create opportunities for improvement before considering significant sanctions. This partnership aims to tackle the root causes of water service failures that affect communities across Panama.
In telecommunications, Rodriguez directly addressed the common public perception of a market duopoly. She acknowledged widespread frustration with the quality of service, particularly regarding internet reliability. To break this dynamic, her agency is actively analyzing the feasibility of introducing a third mobile operator to the Panamanian market.
We are exploring the possibility of a hybrid operator, meaning both virtual and physical. This is to incentivize other companies to come to Panama without having to start from scratch. [Translated from Spanish]
The goal is to offer consumers more choice and spur competition that elevates service standards across the board. Rodriguez expressed confidence that this new operator could begin services in 2026, marking a significant shift in the landscape for telecommunications services. Several interested companies have already held preliminary meetings with the regulator.
Investigating National Blackouts and Enforcing Penalties
A major nationwide blackout in March 2025, which left the entire country without power for hours, triggered a formal investigation. Rodriguez confirmed that an investigating committee was established to determine responsibility for the catastrophic failure. That committee is currently fulfilling all legal requirements for its probe.
The administrator promised transparency once the process concludes. A final decision on culpability and any subsequent regulatory actions will be made public. This event underscored the vulnerability of the national grid and intensified pressure on the National Authority of Public Services (Panama) to ensure system stability.
The recent enforcement of historical fines represents a cornerstone of Rodriguez’s tenure. She framed it as a necessary corrective to years of inadequate oversight. The penalties are specifically for failures to provide quality service as mandated by law. If the courts ultimately rule against the regulator in the ongoing lawsuit, a complex situation would arise regarding customer compensations that have already been paid.
There is an issue there, because if the company has already provided the compensation, it would then have to ask the client to return that credit. For procedural, legal, and common-sense reasons, that would be the right thing to do. But in this case, I cannot wait 10 or 15 years to act. [Translated from Spanish]
This statement highlights the regulator’s new determination to resolve legacy issues promptly. It signals a departure from protracted legal battles that previously delayed accountability. The proactive stance is intended to deliver more immediate redress to affected consumers and demonstrate the agency’s restored authority.
Denying Monopolies and Charting a New Course
Despite persistent criticism about concentrated market power, Rodriguez firmly denied the existence of a Monopoly in Panama’s electricity sector. She instead pointed to the robust fines and the upcoming sector reform as the appropriate tools to foster competition and improve service. The proposed new law for the electricity sector is envisioned as a profound transformation of the regulatory framework governing power generation and distribution.
The push for a third mobile operator further illustrates the strategy of using market expansion as a catalyst for change. By lowering barriers to entry for new players, the regulator hopes to naturally dismantle any anti-competitive structures that exist between telecommunications providers. The hybrid operator model is a key innovation designed to attract investment without forcing new entrants to build massive physical infrastructure from the ground up.
Rodriguez’s overarching message is one of institutional modernization and assertive regulation. From deploying drones for infrastructure inspection to digitizing internal processes, the authority is seeking to enhance its supervisory capabilities. The agency continues to receive approximately a thousand complaints monthly, a number it hopes to see decline as these wide-ranging reforms take hold. The success of these initiatives will be measured by the tangible improvement in the essential services that power Panamanian homes and businesses.