Technician with a blue helmet inspecting an electrical control panel full of colorful wires
ECUADOR

The Government adjusted electricity rates without affecting the Ecuadorian residential sector

The adjustment applies only to high and medium voltage industries, while the subsidy for households remains in place

The National Government announced an adjustment to electricity rates that will only apply to the High Voltage (AV 1) and Medium Voltage (MV) segments, excluding the residential sector. The measure was communicated on June 2 by official spokesperson Carolina Jaramillo.

According to the announcement, the average price for the AV 1 group will increase from $0.0791 to $0.1022 per kilowatt-hour, representing a 29% increase. In the case of MV group consumers, the rate will rise from $0.0927 to $0.1164, equivalent to a 25% increase.

Ecuadorian families will not see their electricity consumption affected, since the low voltage group—which includes 5.3 million households—will continue receiving subsidies. In addition, the measure excludes sensitive sectors such as social assistance, water pumping for rural communities, and sports venues.

Fenced electrical substation with high-voltage towers and cables under a clear sky
The Government adjusted electricity rates | La Derecha Diario

The administration specified that this decision aims to make the real costs of the electricity system transparent and avoid distortions that affect the state budget. The rate adjustment for AV 1 will represent revenues of $78 million and for MV, an additional $178 million.

This announcement adds to other recent actions that reflect a technically and fiscally responsible shift in the Executive's energy policy. The elimination of the diesel subsidy for the tuna industry, for example, relieved the State by $42 million annually. Meanwhile, organizations such as CAN are advancing joint policies to combat organized crime, supporting a regional agenda of order and legality.

With this measure, the Government reaffirms its commitment to fiscal stability without affecting households. The focus on efficiency and fiscal responsibility allows resources to be freed up for social investments and to strengthen the national electricity system.

➡️ Ecuador

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