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    Home AMERICAS Panama

    Electricity subsidy: Executive approves $64.6 million for the FET fund

    The Analyst by The Analyst
    May 6, 2026
    in Panama
    Electricity subsidy: Executive approves $64.6 million for the FET fund


    He Cabinet Council of the Republic of Panama formalized the disbursement of 64 million 620 thousand 266 dollars with 62 hundredths intended for Tariff Stabilization Fund (FET).

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    The measure announced this Tuesday, May 5, seeks to compensate electrical energy distribution companies for the discounts applied to users with lower consumption during the close of the previous fiscal year.

    Through the Resolution N.42-25the State guarantees the sustainability of the subsidy scheme that directly benefits 930,000 customers whose electricity consumption did not exceed the 300 kilowatt hours (kWh) monthly during the second half of 2025 (July to December).

    An adjustment based on social demandThe allocation of these resources is not discretionary. The Public Services Authority (ASEP) was in charge of notifying the Executive Body of the precise amount after auditing the discounts granted by the distributors. The process had the technical support of the National Economic Council (CENA)which issued a favorable opinion on April 29, 2026.

    This type of state contributions to the FET represent a critical mechanism to prevent fluctuations in the energy market from directly impacting the pockets of the most vulnerable sectors of the country, reported the Presidency of the Republic through its press release.





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