Summary.
The bill adds provisions to Law 6 of February 3, 1997, bringing electricity generated by end users for their own consumption within the electricity framework, whether they use interconnected grids, isolated systems or rural and island communities. It adds energy efficiency, user participation and community systems or microgrids to the framework’s purposes. Generation for on-site use that connects to the grid or uses public infrastructure would be regulated by the National Public Services Authority (Autoridad Nacional de los Servicios Públicos); in isolated systems, it could form part of rural electrification programs coordinated with the National Energy Secretariat (Secretaría Nacional de Energía).
The bill adds the safe integration of self-generation, tariff equity, grid access and technical, economic and environmental oversight to the purposes and instruments of state intervention. It restricts the sale of equipment and services for self-generation by electricity sector companies or affiliated state entities unless expressly authorized. It defines self-generation for on-site consumption, participating end users, surplus electricity, energy credits, new, renewable and clean sources, bidirectional metering and the transfer of credits.
The new chapter would cover regulated residential, commercial and industrial end users, whether public or private, with grid-connected or isolated systems. It excludes Large Customers eligible for the wholesale electricity market and generators whose production is primarily for sale in that market. It recognizes rights to generate electricity for personal use, inject surplus electricity, receive compensation and information, and access the grid without discrimination. Customers must meet technical requirements, maintain their equipment and pay for upgrades exclusive to their installations. Distribution companies must permit connections, publish approved requirements and give reasons for refusals.
Credits for surplus electricity must appear on bills without additional charges and may accumulate for a maximum period of twelve (12) months. Customers may transfer up to fifty percent (50%) to another account they own within the same concession area or to relatives up to the second degree of consanguinity. The National Public Services Authority would set valuation and compensation rules, review its methodology annually, and publish data and available grid capacity. It would also set penetration limits supported by studies, connection requirements and expedited procedures for disputes. Distribution companies would install, maintain and calibrate bidirectional meters without additional cost to users. The bill prohibits artificial division of electrical loads, connection through another person’s facilities and unauthorized barriers imposed by distributors.
Suppliers and installers must comply with safety standards and answer for damage caused by defects or noncompliance. Installations must comply with the Electrical Installations Regulation of the Republic of Panama. The bill provides for a free digital one-stop portal, response deadlines based on user capacity and approval through positive administrative silence, subject to exceptions established by reasoned decisions. It provides corrective measures and penalties for repeated failures to meet deadlines. The Executive Branch (Órgano Ejecutivo) could establish incentives under the Tax Code (Código Fiscal); already connected projects would retain their conditions for the specified period. The bill also calls for technical regulations, an evaluation report to the National Assembly (Asamblea Nacional), and precedence for the new framework over administrative rules. Its final articles restate the additions to the law and tie commencement to publication or promulgation in the Official Gazette.
Given its subject matter, the bill concerns the National Public Services Authority, the National Energy Secretariat, the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), the Ministry of Environment (Ministerio de Ambiente), the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), the Panama Fire Department (Cuerpo de Bomberos de Panamá) and municipalities. It could affect residential customers, businesses, SMEs, industrial users, distributors, electrical equipment suppliers and installers, and rural and island communities.
What it proposes.
- Electricity self-generation for on-site use from new, renewable and clean sources.
- Grid connection, metering and compensation for surplus electricity.
- Procedures, oversight and incentives associated with self-generation.
Who it would affect.
- Regulated end users who generate electricity for their own consumption.
- Electricity distribution companies.
- Suppliers, importers and installers of self-generation systems.
- Institutions responsible for permits, regulation and oversight.
Key points.
- Brings self-generation for on-site use within the electricity framework and its purposes, including in isolated systems and rural and island communities.Arts. 1-3
- Adds purposes of state intervention, restrictions on equipment sales by sector-affiliated companies, and promotion and oversight functions.Arts. 4-5
- Defines self-generation, surplus electricity, energy credits, bidirectional metering and credit transfers.Art. 6
- Sets customer rights and duties, connection rules, and distribution companies’ metering and billing obligations.Art. 7
- Allows credits to accumulate for a maximum period of twelve (12) months and permits transfers of up to fifty percent (50%) in the specified circumstances.Art. 7
- Provides for a digital one-stop portal, response deadlines, positive administrative silence and penalties for repeated noncompliance.Art. 7
- Provides for incentives, preservation of conditions for already connected projects, technical regulations and an evaluation report.Art. 7
- Restates the additions to Law 6 of February 3, 1997, and links commencement to publication or promulgation in the Official Gazette.Arts. 8-10