Government to eliminate electric subsidy for large companies and diesel subsidy for fishing fleet

The government is eliminating the electricity subsidy for large companies, including commercial mines, and ending the diesel subsidy for commercial fishing companies.

Large corporations and mines will pay more for electricity beginning in July.

Presidential press spokeswoman Carolina Jaramillo Garcés said that it “is time that large commercial interests pay their own way so we can apply subsidies where they belong, helping our poor population.” Beginning in July, Garcés said that large corporations and mines, will pay market rate for electricity.

The new charge will generate $256 million for the treasury, according to a Finance Ministry estimate.

Garcés said electric rates for households and small businesses will continue to be subsidized.

Eliminating the diesel subsidy for the commercial fishing fleet will save the government $60 to $70 million, the Finance Ministry says. “We informed the affected fishing interests about the change two weeks ago, so this is not a surprise,” Garcés said, adding: “The subsidy will remain in place for artisanal fishers.”

In a separate announcement Monday, Noboa said he will conduct audits of several public companies, including Petroecuador and national electric companies, CNEL and CELEC. Noboa said he will contract with an international audit firm, such as Deloitte, PWC or E&Y, to conduct the reviews.