[stop-imf] IMF Forces Nicaragua to Raise Electricity

[robert weissman]

http://www.plenglish.com/article.asp?ID=3D%7B72F4B980-22C6-41A5-A7EA-7519B3=
4E149D%7D)&language=3DEN

IMF Forces Nicaragua to Raise Electricity

Managua, Oct 26 (Prensa Latina) Union Fenosa will raise electricity
tariffs in Nicaragua as demanded by the International Monetary Fund
(IMF) and despite warnings on the negative impact of the measure, the
Nicaraguan Energy Institute (INE) indicated.

The IMF has demanded that the government of President Enrique Bola=F1os
raises the electrical bill by 25 percent, as a condition for this
Central American country to have access credits from the financial body.

The demand to increase tariffs will be presented next Monday by the
Spanish transnational company that monopolizes electricity distribution
in Nicaragua, INE spokespeople told reporters.

According to the INE, the Electric Industry Act allows Uni=F3n Fenosa to
ask for an annual rise in tariffs to recover from any losses due to an
increase in operation costs.

However, the company was authorized in September to increase tariffs by
10 percent to clients that consume more than 150 kilowatts per month.

Deputy Agust=EDn Jarqu=EDn, a member of the Infrastructure Commission of th=
e
National Assembly, said the increase is unjustified, while the newspaper
"El Nuevo Diario" described it as "brutal".

According to analyst Adolfo Acevedo, these kinds of economic policies
cannot be implemented in a weak economy like Nicaragua=B4s, where 80
percent of the people earns less than two dollars a day.

"The people must react immediately, because these agreements cause
instability," said Enrique Picado, national leader of the Nicaraguan
Communal Movement, in statements to the media.