Bolivia Nationalizes Electricity Companies in Hopes of Improving Rural Access

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http://www.commondreams.org/headline/2012/12/30-0


Morales signs a decree allowing the takeover of shares in Empresa de Electricidad de La Paz (Electropaz) and Empresa de Luz y Fuerza de Oruro (Elfeo), Vice President Alvaro Garcia Linera at the government palace in La Paz, Bolivia, Saturday, Dec. 29, 2012. (Reuters)

Bolivia President Evo Morales has nationalized two electricity distribution companies owned by Spanish utility company Iberdrola in the latest of several industry nationalizations since Morales took office, which has included oil, mining, telecommunications, and energy generation companies.

Morales said the move was an attempt to improve rural energy services in the country, adding that Iberdrola will be compensated according to the value of the company to be decided by an independent arbiter.

"We considered this measure necessary to ensure equitable energy tariffs ... and to see to it that the quality of electricity service is uniform in rural as well as urban areas," Morales said.