Nicaragua : Energy Sector Policy Note, Executive Summary

World Bank

2012

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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.

Acceso a energía; Estadísticas; Generación de energía; Nicaragua; Sector energético; Uso de energía;