Nicaragua think-tank calls for rates review

The current oil price dip is an opportunity to review power pricing in Nicaragua, according to local think-tank Funides.

In a report, the economic and social development foundation says the country generally has the highest prices in Central America.

Funides states that in 2014, residential consumption of 200kWh was US$0.247/kWh, double that of Panama and Honduras.

The think-tank attributes high rates to a deep dependence on oil-fired power generation, a small energy market and high energy losses.

Funides, however, points to efforts to increase the share of renewable energy generation and combat losses.

The government wants renewables to generate up to 90% of power within five years.

A drop in oil prices this year could save US$125mn in power costs, Funides said.