Ecuador aims to close loopholes in electric sector


CSA Z462 Arc Flash Training – Electrical Safety Compliance Course

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
QUITO, Ecuador, July 15 (Reuters) - Ecuador's President Lucio Gutierrez has issued a decree to ensure electric companies pay for fuel used to run power plants, in a bid to tap a fresh IMF loan disbursement, officials said on Tuesday.

The decree aims to ensure that electric distribution companies --which are notoriously inefficient and behind on their bills-- pay for energy purchased to ensure the state oil firm receives cash for fuel used in thermal power plants.

Officials close to the government, who requested anonymity, told Reuters the decree is one of the International Monetary Fund's requirements before approving a new disbursement under the country's vital $205 million program with the lender.

The decree --a copy of which was obtained by Reuters on Tuesday-- says that companies involved in electricity distribution must form part of a trust that controls the cash obtained from energy sales.

According to the decree, the companies must give priority to payments for thermal energy over other energy sources and distribution to ensure that state oil company Petroecuador is paid for the fuel used in power plants.

By prioritizing payments, Quito hopes state electric distribution companies will become more efficient, which could also help attract much-needed investments in generation, an official close to the government told Reuters.

The decree should also enable Petroecuador to reel in an additional $200 million next year, he said. The firm, which provides key revenues to the cash-strapped central government, is striving to obtain more money for investment in oil output.

This Andean nation is currently striving to secure IMF approval for a $42 million disbursement under its loan accord signed in March, which will open the door to key credits the government needs to pay some $2.3 billion in debt this year.

Related News

Germany shuts down its last three nuclear power plants

Germany Nuclear Phase-Out ends power generation from reactors, prioritizing energy security, renewables, and emissions goals…
View more

'Net Zero' Emissions Targets Not Possible Without Multiple New Nuclear Power Stations, Say Industry Leaders

UK Nuclear Power Expansion is vital for low-carbon baseload, energy security, and Net Zero, complementing…
View more

Texas produces and consumes the most electricity in the US

Texas ERCOT Power Grid leads U.S. wind generation yet faces isolated interconnection, FERC exemption, and…
View more

Rio Tinto seeking solutions that transform heat from underground mines into electricity

Rio Tinto waste heat-to-electricity initiative captures underground mining thermal energy at Resolution Copper, Arizona, converting…
View more

4 ways the energy crisis hits U.S. electricity, gas, EVs

U.S. Energy Crunch disrupts fuel and power markets, driving natural gas price spikes, coal resurgence,…
View more

China to build 2,000-MW Lawa hydropower station on Jinsha River

Lawa Hydropower Station approved on the Jinsha River, a Yangtze tributary, delivers 2,000 MW via…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2026 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified