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Bill 705 would give ASEP sharper power over distributors

If your Panama apartment runs on Edemet, Edechi, or ENSA, the next two years of electricity rules are being written now—not in 2028 when the current distribution concessions expire.

On 22 September 2026, the National Assembly’s Comisión de Comercio y Asuntos Económicos opened first debate on Proyecto de Ley 705, the Executive’s rewrite of the 1997 electricity law (and pieces of the ASEP framework). The commission went into permanent session and recessed until Tuesday 29 September to continue article-by-article discussion, TVN reported.

What the bill would change for households

Press and legislative-analysis coverage (La Prensa, Nexo, TVN) converge on a consumer-facing package still not yet law:

  • Claims clock: distributors would have 15 days to resolve billing / high-consumption disputes; silence would count for the customer (Nexo notes ASEP already applies a 15-day practice; the bill would hard-wire it).
  • Credits first: when ASEP orders compensation for quality failures, that money is meant to reach the affected customer’s bill—not sit behind endless appeals. Nexo says appeals against refund orders would lose suspensory effect, with coactiva collection and a 2% monthly surcharge if the company does not pay.
  • Bigger fines: La Prensa cites maximum fines that could reach $20 million, plus daily fines of $100–$10,000 for ignoring ASEP orders. Nexo adds a hard stop: if accumulated sanctions exceed 25% of the prior year’s billed revenue, the concession can be terminated.
  • Intervention power: ASEP could appoint an interventor if continuity of service is at risk—paid for by the distributor (La Prensa).
  • Rural debt: Energy Secretary remarks (via TVN) frame a duty to serve more than 58,000 families still without electricity.

ASEP administrator Zelmar Rodríguez has already cautioned in writing that the reform “does not, by itself, guarantee a tariff reduction” (Nexo, 23 Sep). Generation still drives roughly 65–70% of the final bill in consultant figures Nexo cites—so sharper policing of distributors is not the same as a cheaper kilowatt-hour tomorrow.

Why 2028 is the real deadline

Current distribution concessions for ENSA and Naturgy’s Edemet / Edechi expire in October 2028. Bill 705 would set the competitive sale of each company’s majority (≥51%) stake under a Cabinet-approved prequalification, with a new 15-year concession for the winner. The incumbent can keep control if its bid matches or beats the highest rival offer—the same “equal or better” logic La Prensa describes from the current framework.

Separately, from 22 October 2028, distributors would run their own power-purchase tenders (today ETESA organizes much of that process). Concentration limits in the Executive text point to a 30% of national consumption cap for generation groups, with a data-center-style exception for large dedicated supply (Nexo / La Prensa).

Parallel texts on the same table

Bancada Vamos asked to merge Anteproyecto 181 (prosumer / independent retailers / renewable interconnection) with 705; the commission kept debating 705 while that request hangs (TVN). A union text (SITIESPA) also floats a 25% generation-concentration cap and bars inefficient losses and related-party overcosts from the tariff. None of the three public write-ups Nexo reviewed published a cents-per-kWh impact number.

Bottom line for expats: this is not a rate cut in your hand—it is the rulebook for who can cut your power, how fast they must answer a disputed bill, and who may run the wires after 2028. Watch the 29 September session; the text can still change in committee.

Based on TVN (22 Sep), La Prensa (11 Sep baseline on the bill text), and Nexo analyses (9 Sep / 23 Sep). Bill is in first debate—not enacted.

Key points

  • Debate 1er: abrió 22 Sep; continúa 29 Sep (TVN)
  • Reclamos: 15 días / silencio a favor del cliente
  • Multas hasta $20M; causal de terminación al 25% de facturación anual (Nexo)
  • Concesiones Edemet/Edechi/ENSA vencen oct 2028; venta del ≥51%
  • ASEP: reforma no garantiza baja tarifaria por sí sola

Sources

  • https://www.tvn-2.com/nacionales/comision-comercio-inicia-debate-reformas-energia-electrica-en-panama-asep-asamblea_1_2262183.html
  • https://www.prensa.com/economia/dos-propuestas-de-ley-plantean-cambios-radicales-al-mercado-electrico-para-consumidores-y-empresas/
  • https://nexo.la/proyecto-ley-705-electricidad/
  • https://nexo.la/reformas-electricas-ley6-sin-cifra/