Bill 557.

First debate (committee stage)
  • TypeBill
  • 557
  • FiledMarch 4, 2026

Summary.

The bill establishes a framework for damage to equipment, installations, and property resulting from disruptions attributable to electricity service. It would apply to licensed electricity distributors in the Republic of Panama and to residential, commercial, and industrial users. It defines electrical damage, user, distributor, and electrical event. The framework is based on strict liability, consumer protection, transparency, traceability, reversal of the burden of proof, prompt administrative action, and state oversight. A distributor would be liable for damage linked to outages, fluctuations, voltage spikes, network failures, or service quality deficiencies, regardless of fault or negligence. Once the user establishes the damage, the distributor would have to show that its cause is not attributable to the service. The user would choose repair, replacement with equivalent or better equipment, or compensation based on market value.

A claim could be filed in person, by telephone, or digitally, with a description of the damage, the approximate date and time of the event, proof of ownership, and an estimate for repair or replacement. The company would issue a case number and immediate acknowledgment. It would have 5 business days to inspect, 10 business days to issue a technical assessment, and 15 business days to repair, replace, or compensate, except in urgent cases requiring immediate attention; failure to meet these deadlines would trigger automatic penalties. The user could request an accredited independent assessment, whose cost the company would bear if the finding favors the user. Generic denials or denials without verifiable technical grounds would be prohibited.

The National Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP) would oversee compliance and maintain a public digital register of claims, response times, and penalties. The licensed distributor would have to ensure continuity, stability, and quality of supply, prevent voltage variations outside technical limits, and investigate harmful fluctuations, reporting their causes and corrective measures within 5 business days. An outage lasting more than 3 consecutive hours, except in cases of verified unforeseen events or force majeure, would give rise to an automatic bill credit and additional compensation for proven damage. The company would notify ASEP of such outages within the first 24 hours and maintain information channels concerning outages, service restoration, and compensation.

Noncompliance would result in fines ranging from 5,000 balboas (B/. 5,000.00) to 500,000 balboas (B/. 500,000.00), as well as an automatic increase in compensation. Aggravating factors would include repeated violations on the same circuit, concealment of information, and unjustified refusal to compensate. Companies would publish quarterly indicators and pay compensation within 15 calendar days after accepting a claim. They would also carry out maintenance, keep digital records of electrical events, and publish quarterly quality reports. The Executive Branch would issue regulations for the proposed law within 3 months of its promulgation. The provisions would be relevant to ASEP, distributors, consumers, and the commercial and industrial sectors.

What it proposes.

  • Liability for electrical damage linked to electricity distribution.
  • Claims, repair, replacement, and compensation for affected equipment.
  • Compensation for prolonged outages and oversight of service quality.

Who it would affect.

  • Licensed electricity distribution companies.
  • Residential users.
  • Commercial and industrial users.

Key points.

  1. The bill defines its scope, electrical damage and events, and the principles of the framework, including strict liability.Arts. 1-4
  2. The distributor would have to show that damage established by the user did not result from the service; the user would choose repair, replacement, or compensation.Arts. 5-6
  3. Claims could be filed in person, by telephone, or digitally, with immediate acknowledgment and deadlines for inspection, assessment, and resolution.Arts. 7-8
  4. The user could request an independent assessment, and company denials would require verifiable technical grounds.Arts. 9-10
  5. The National Public Services Authority (Autoridad Nacional de los Servicios Públicos, ASEP) would oversee the framework; outages lasting more than 3 consecutive hours would trigger automatic compensation, subject to the stated exceptions.Arts. 11-12
  6. The bill proposes fines and increases in compensation, aggravating factors, quarterly publication of indicators, and a deadline for paying accepted claims.Arts. 13-16
  7. Distributors would perform maintenance, record electrical events, and publish quality reports; the Executive Branch would issue regulations for the proposed law.Arts. 17-20