---
title: "Panama Approves $18.84M Transfer to Keep Electricity Rates Stable in Bocas del Toro"
date: 2026-03-19
modified: 2026-03-20
author: ""
url: https://panamadaily.news/2026/03/19/government-allocates-18-8m-to-stabilize-electricity/
categories:
  - "Economy"
  - "News"
  - "Politics"
tags:
  - "Bocas del Toro"
  - "Edechi"
  - "electricity"
  - "ETESA"
  - "MEF"
  - "Western Tariff Fund"
---

# Panama Approves $18.84M Transfer to Keep Electricity Rates Stable in Bocas del Toro

## What Happened

The Government, through the Cabinet Council, approved Resolution 19-26 authorizing a state contribution of $18,842,193.43 to the Western Tariff Fund (FTO). The measure aims to stabilize electricity costs in the province of Bocas del Toro and benefit roughly 183,000 people.

The transfer is intended to compensate for a benefit applied by the Chiriquí Electric Distribution Company, SA (Edechi) to its end customers and the rate paid during the period from July to December 2025. The approval directs the Ministry of Economy and Finance (MEF) to manage the transfer of resources to the Electric Transmission Company, SA (Etesa), in its role as trustee of the fund.

## Background

The payment is based on provisions stemming from a trust agreement signed in 2015 between the State and Etesa establishing the Western Tariff Fund. That agreement stipulates that customers in areas served by Edechi — including Almirante, Guabito, Las Tablas and Changuinola — will continue paying their current electricity rate while improvements are made to the quality of supply.

Under the trust’s terms, the State assumes the difference between the current consumer rate and the approved real cost rate until the necessary adjustments to the service are completed. The resolution also specifies that transfers routed through Etesa as trustee must be passed on in full to end consumers.

## What This Means

For residents of the named communities in Bocas del Toro, the allocation prevents an immediate increase in household electricity bills despite higher underlying costs. The subsidy preserves the consumer rate they currently pay and is explicitly tied to the period and benefits applied by Edechi from July to December 2025.

Administratively, the MEF is authorized to manage the procedures for transferring the funds to Etesa, which will act as trustee of the FTO. The move reiterates the State’s role in using fiscal resources to ensure price stability in regulated electricity service areas while infrastructure or service quality improvements are undertaken.

By confirming this transfer, the government maintains continuity with the 2015 trust framework and seeks to guarantee that the intended relief is delivered directly to end users in the affected Bocas del Toro communities.