{"id":13976,"date":"2026-06-13T17:00:00","date_gmt":"2026-06-13T22:00:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=13976"},"modified":"2026-06-13T10:51:06","modified_gmt":"2026-06-13T15:51:06","slug":"panama-regulator-proposes-ending-electricity-monopoly","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/politics-government\/panama-regulator-proposes-ending-electricity-monopoly\/","title":{"rendered":"Panama Regulator Proposes Ending Electricity Monopoly"},"content":{"rendered":"

Panama’s consumer protection agency has proposed a major shakeup of the country’s electricity market. The plan would let households choose their power supplier for the first time. The Panama electricity market competition proposal<\/a> targets the current system of geographic monopolies.<\/p>\n

The Panama Consumer Protection and Competition Authority<\/a>, known as Acodeco, submitted a technical report on June 3, 2026. The document went to Zelmar Rodr\u00edguez, administrator general of the National Authority for Public Services (ASEP). Dated May 29, 2026, the report argues that residential customers lack the freedom to choose their energy provider.<\/p>\n

Three companies currently control Panama’s retail electricity supply. Ensa, Edemet and Edechi each operate exclusive zones. This design forces most households and small businesses to buy power from a single regional provider. There is no option to shop for better rates or service terms.<\/p>\n

\"acodeco\"
acodeco<\/figcaption><\/figure>\n

Breaking Up the Geographic Monopoly Model<\/h2>\n

The proposal calls for separating distribution and commercialization activities in new contracts. These functions are currently bundled together. The change would allow independent commercializers to enter the market. These new agents could offer Panamanian households various packages based on price, time of use or renewable energy sources.<\/p>\n

Diego Morales, national director of Free Competition at Acodeco, signed the technical analysis. The document recommends that Acodeco conduct competition advocacy before ASEP. The goal is to evaluate opening the electricity commercialization market to competition. The timing aligns with the expiration of current concessions in October 2028.<\/p>\n

“An open market for competition in the commercialization of electrical energy can have different economic agents offering the service without the geographic restrictions that exist in the distributors,” the report states. [Translated from Spanish]<\/p><\/blockquote>\n

The report draws a sharp distinction between large and small consumers. Large clients, those using more than 100 kW, already enjoy freedom to negotiate directly with generators or distributors. Residential customers remain trapped in a monopoly structure. The proposed separation would end that disparity.<\/p>\n

\"european
european union flags<\/figcaption><\/figure>\n

European Model as a Reference Point<\/h2>\n

Acodeco points to Europe’s successful electricity market liberalization as evidence. Spain stands out as a prime example. According to 2024 data, Spain has 238 active commercialization agents. This has created a highly competitive market with low concentration levels and constant entry of new competitors.<\/p>\n

Germany, with 197 agents, and Italy, with 155 agents, also serve as models. These countries demonstrate how competition benefits the end consumer through better prices and service options. The Competition Defense Authority<\/a> sees these international cases as proof of concept for Panama.<\/p>\n

The technical report has been shared with two government ministries. Copies went to the Ministry of Economy and Finance (Mef) and the Ministry of Commerce and Industries (Mici). Both agencies will play roles in any potential regulatory changes.<\/p>\n

Panama’s electricity demand is projected to grow 4.30 percent annually over the next 15 years. This rising demand adds urgency to the debate. A more competitive market could help manage costs for consumers facing higher consumption in the future.<\/p>\n

The proposal does not guarantee immediate changes. ASEP must evaluate the recommendations first. The 2028 concession expiration date provides a natural window for restructuring. That gives regulators roughly two years to study the feasibility of opening the market.<\/p>\n

For now, Panama’s 1.5 million residential electricity customers remain locked into their regional providers. But the groundwork for a competitive market has been laid. The question is whether regulators will seize the opportunity.<\/p>\n

\"asep
ASEP office by asep.gob.pa<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Panama’s consumer protection agency has proposed a major shakeup of the country’s electricity market. The plan would let households choose their power supplier for the first time. The Panama electricity market competition proposal targets the current system of geographic monopolies. The Panama Consumer Protection and Competition Authority, known as Acodeco, submitted a technical report on<\/p>\n","protected":false},"author":1,"featured_media":13977,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[29,30],"tags":[270,4793,1835,4794],"class_list":["post-13976","post","type-post","status-publish","format-standard","has-post-thumbnail","category-politics-government","category-business-economy","tag-acodeco","tag-energy-deregulation","tag-panama-electricity","tag-panama-electricity-market-competition"],"_links":{"self":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/13976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/comments?post=13976"}],"version-history":[{"count":1,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/13976\/revisions"}],"predecessor-version":[{"id":13979,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/13976\/revisions\/13979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media\/13977"}],"wp:attachment":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media?parent=13976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/categories?post=13976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/tags?post=13976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}