The news source noted a senior company source as saying that, according to an informal agreement, the deal will take place before April 30, 2008. Union Fenosa reportedly holds a virtual monopoly over Nicaragua’s electricity distribution market.
The country is facing major electricity shortages, with the government blaming Union Fenosa for the blackouts. Unlike the trend in socialist governments in Latin America, Nicaragua has not yet nationalized the electricity sector.
Union Fenosa was earlier authorized by the Nicaraguan government to increase its electricity tariffs by 9.06%, to counter the increasing costs of fuel.
