The Union of Electrical and Similar Industry Workers of the Republic of Panama (SITIESPA), together with citizen proponents, has presented to the National Assembly a bill that modifies and adds various articles to the Single Text of Law 6 of February 3, 1997, the norm that regulates the Panamanian electrical sector.
The initiative seeks to correct market distortions, limit economic concentration, lower tariff costs for users and guarantee the stability of human talent in an environment of technological transition.
Almost three decades after the regulatory and institutional framework for electricity was established in Panama, the union points out that the system faces important challenges such as the digitalization of networks, the expansion of renewable energies and the growth of energy demand.
In its explanatory statement, SITIESPA maintains that a quality service does not depend solely on investment in infrastructure, but also on the knowledge and technical capacity of specialized personnel who maintain continuity of supply.
One of the central pillars of the proposal lies in the updating of competition rules within the national electricity sector:
Effective limit to concentration in generation: The proposal modifies article 59 to restrict participation in the generation supply of the national electricity market by the same economic group or final beneficiary to a maximum of 25%. This measurement will include subsidiaries, corporate agreements and common control structures to avoid artificial fragmentation of properties.
Strict prohibition of vertical integration: A strict limit of zero percent (0%) will be set so that electricity distribution companies, their parent companies or subsidiaries can participate, directly or indirectly, in generation activities oriented to the national market.
Strengthening the National Dispatch Center (CND): The CND will continue to be a dependency of the Electric Transmission Company, SA (ETESA), but will operate with technical, budgetary, accounting and operational autonomy. It will have the exclusive function of certifying the firm available capacity of the generators and supervising their real availability.
New contracting and rates scheme: The mandatory separation of energy and capacity products is proposed in contracts for regulated clients. The available firm capacity will be remunerated through a Uniform Capacity Price (PUC) regulated by the National Public Services Authority (ASEP), while the tenders will focus on competing for the lowest energy cost for the benefit of the final consumer.
Protection of the regulated user: The project explicitly prohibits distributors from transferring inefficient losses, fines, sanctions, unnecessary advertising expenses or cost overruns derived from contracts with related companies to the electricity rate.
In the social sphere, the legislative proposal establishes solid safeguards to protect the rights of workers in the event of business reorganizations or concession changes:
Guarantee in employer replacement: In the event of fissions, mergers, restructuring or changes in management, the new employer will assume labor obligations uninterruptedly. Previously acquired work seniority, salaries, benefits and social benefits will be guaranteed.
Continuity of Collective Agreements and union privileges: Current collective agreements will remain valid and binding in the event of a change of company. Likewise, in cases where multiple unions come together after a restructuring, the legal status and representation of each union will be preserved.
Just technological transition: Automation, digitalization and incorporation of smart networks cannot be used as unilateral grounds for dismissal. Companies will be required to implement training programs, job retraining, professional updating and internal mobility.
Social dialogue and occupational health: Permanent consultation spaces are created between authorities (ASEP), companies and union organizations to address aspects of operational safety, health at work and the adaptation of personnel to the new demands of the energy transition.
