Martin Torrijos Calls for Review of Panama Electric Concessions
PANAMA CITY, August 1, 2026 – Former president Martin Torrijos said Panama should conduct a deep review of the electric-concession model as the country approaches 2028, when key concessions are due to expire.
TVN Noticias reported that Torrijos argued the country needs stronger regulation, better oversight and clearer benefits for users. His comments come as the National Assembly discusses proposals that could modify the rules governing the electricity sector.
Torrijos criticized past decisions that, in his view, recognized investments that were not carried out and contributed to distortions in the market. He linked those concerns to the persistent public frustration over inefficient service and high electricity costs.
The issue is politically sensitive because electric concessions affect household budgets, business costs, infrastructure investment and confidence in regulators. Any review would have to balance consumer protection with system stability and long-term investment needs.
Torrijos also criticized the projected 2027 national budget, which exceeds $35 billion, saying Panama continues to face pressure from operating expenses and public debt.
TVN reported that ASEP is preparing proposed changes to the regulatory framework for electric concessions, aimed at strengthening the regulator oversight role and updating sector rules.
Why it matters
Electricity regulation affects nearly every household and business in Panama, while the 2028 concession timeline creates a policy window for reform.
What happens next
The debate will move through the Assembly, ASEP regulatory proposals and the broader 2027 budget review process.
