Sunday, March 23, 2014 Government Takes First Steps to End Gas Subsidy President Rafael Correa announced on Saturday the first steps in Ecuadors plan to shift domestic consumers from natural gas to electricity. The government said last year that it would eliminate the subsidy on gas in 2016, replacing it with partially subsidized electricity. Currently, gas is sold at a fixed rate which often amounts to less than 15% of the international market price. According to Correa, the government will provide the first 100 kilowatt hours (kWh) of electricity, intended for cooking and water heating, free until 2018, at which point the first 100 kWh will cost $4 per month. This is the amount, he says, the typical family currently pays for subsidized gas. In addition, the government will offer a monthly payment plan for the purchase of electric cooktops and shower heads. Ecuador is building eight new hydroelectric plants, including two in the Cuenca area, and says the country will be a net exporter of electricity by 2018. Even with the electric subsidy, the government expects to save about $800 million annually on gas, much of which it imports. The government says the average Ecuadorian household uses about 100 kWh of electricity monthly but experts say the move to electric cooking and water heating will increase that amount dramatically. The worldwide monthly average for electric consumption is 285 kWhs. The U.S. and Canada, the largest consumers, average 950 kWhs per household, based on the latest statistics.
Posted on: Sun, 23 Mar 2014 22:54:07 +0000
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