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Guatemala

( Last update: August 2006 )

Electricity Market
Sector structure
Upstream The sector is partially privatised.

Several private and one-state owned producing companies operate both TPPs and HPPs (mainly owned by the state).

Empresa Generadora de Energía Eléctrica (EGEE), a subsidy of the state-owned company INDE (Instituto Nacional de Electrificatión), is the main operator, accounting approx. for 39,6% of production in 2005. Other important IPPs are the Grupo Generador de Guatemala (10%), the Ingenios (9%) and Central Generadora Eléctrica San José (7%).

The wholesale market administrator (so called “Administrador del Mercado Mayorista (AMM)”) a public company of generators, distributors, suppliers and eligible consumers is the electricity Market Operator (MO). The wholesale market relies on bilateral negotiations (both long-term contracts and spot transactions).

Ownership separation is required for generation, distribution, and transmission activities.
Networks Transmission is publicly-owned while distribution has been privatised.

State-owned Empresa de Transporte y Control de Energia Electrica del Inde Planeacion e Ingenieria (ETCEE), a subsidy of INDE, owns and operates the transmission grid under NTPA.

3 regional (DEOCSA, DEORSA, two subsidy of the Spanish Empresa Unión FENOSA, and EEGSA, majority-owned by the Consorcio Iberdrola-TPS Electricidad de Portugal) and several local DSOs operate the grids under NTPA regime.

Distribution and transmission tariffs are regulated by the National Commission for Electrical Energy (so called “Comision Nacional de Energia Electrica”- CNEE) the energy market regulator.
Downstream The sector is partially privatised.

DSOs are the dominant suppliers in their respective distribution areas. Some independent suppliers and one state-owned player have began to enter the market.

Eligibility level sets at 1 MW since1997.

Price for no-eligible consumers are regulated by the CNEE, while eligible consumers can freely negotiate with distributors or suppliers.
Gas Market
Sector structure No production or consumption of Gas.

A protocol with Mexico has been signed in 1999 for the construction of a natural gas pipeline connecting Jaltiplan de Morelos, but no relevant progress can be reported.
Current issues Carry out the rural electrification plan of the country which include the development of transmission and distribution networks.

Increase the generation capacity (25,5 MW) in the interconnected transmission system (planned for the 2005 but not yet completed).

Construction phase of the SIEPA project, a wholesale electricity common market of the central America region (Guatemala, El Salvador, Honsuras, Nicaragua, Costa Rica and Panama) with its own transmission grid, planned in 2006.

A Guatemala-México electric interconnection linked to SIEPAC projects under study.
National Legislation (Legislation is only available in Spanish)

Electric Power Act Decree 93-96

Regulation for the users complaints of the electricity distribution service

Regulation to reduce conflicts
Sources IERN staff on publicly available information