“It is striking that despite the greater participation of a renewable energy matrix, the cost of electricity does not go down for end consumers. This is a matter of concern.” 2024-07-13 10:52:15

This Monday, in an interview with Julio Villagrán, the Executive Director of the Center for Consumer Defense (CDC), Danilo Pérez, expressed that the issue of subsidies is necessary and becomes fundamental and even strategic when the majority of the population is in poverty, prioritizing this benefit for those who need it most.

“The government has indicated that it will maintain the gas subsidy for 1.2 million people. Consumers must insist that this subsidy be eliminated… To a certain extent, the issue of subsidies must be focused on, especially prioritizing those families that need it most. I believe that there are sectors in national life that do not need it and are receiving subsidies.” Perez said.

The CDC Executive Director said that they have investigated the prices of electric energy, specifically the megawatt per hour (MWh), used in residential consumption and its relationship with commercial and industrial rates, comparing the prices in El Salvador with the rest of Central America.

According to their research, it is worrying that despite the participation of renewable energies, the cost of electricity does not decrease for the final consumer.

“Of the 6 countries in the region, 3 apply VAT: Nicaragua with 15%, El Salvador with 13% and Guatemala with 12%; Panama, Costa Rica and Honduras do not apply VAT to the MWh rate… The price of the residential MWh is 217.27 and the industrial one is 161.44 dollars, this is data updated until 2022” detailed the CDC Executive Director.

Regarding the prices of the basic basket, Pérez explained that there was an increase in prices following the storm-type rains that affected El Salvador, affecting the prices of beans, chili, potatoes, among other products.

“The quintal of red silk beans in May 2021 cost $ 53.90, on June 14 before the rainy phenomenon it cost $ 92.40, on June 21 $ 95.00 and on June 26 $ 95.20 dollars… The bag of green chili in May 2021 cost 10 dollars, on June 14, 2024 before the rainy phenomenon $ 22.80, on June 21 following the phenomenon it cost 28 and on June 26 it is at $ 32.50 dollars… The quintal of soloma potatoes for May 2021 cost $ 40 dollars, in June 2024 it cost $ 102.50 and by June 26 it reached 85 dollars” explained Danilo Perez.