Nicaragua’s daily newspaper La Prensa reports that the Nicaraguan Institute of Energy (INE) will raise electric energy taxes by 8.5 percent beginning this month of February.

David Castillo, executive president of the INE, assured that this adjustment will allow the payment – over a six-month period – of $13 million towards a debt with Union Fenosa, the country’s energy distribution company. The actual debt of $33.3 million is due to the continuing rise in the price of oil.

Castillo explained that if the Government had not promised to contribute $20 million of support the increase would have been 16 percent instead of the announced 8.5 percent.

Those who consume fewer than 150 kilowatts of energy per month will not be affected by the increase. In total, an estimated 550,000 households and clients will share the announced tax increase.

Last year, the INE authorized an electrical energy tax increase of 9 percent.

Lorena Lanza of the Ministry of Energy and Mines (MEM) made known the energy conservation means outlined in a presidential decree signed by President Daniel Ortega Saavedra in Feb 2008. According to the decree, all ministries of the state, decentralized entities, and institutions of executive power must reduce their energy consumption (electric and combustable) by a minimum of 20% within the following three months.