El Salvador Energy Transfer of Regulatory Authority
El Salvador’s government enacted legislation transferring electricity regulatory authority from the Superintendence of Electricity and Telecommunications (SIGET) to the General Directorate of Energy, Hydrocarbons and Mines (DGEHM). As a result, U.S. companies operating in or considering entry into El Salvador’s energy sector, including power generation, distribution, renewable energy, and grid infrastructure, now have a new, sector-specialized regulatory counterpart for licensing, concessions, tariffs, and compliance.
Two complementary decrees (Nos. 619 and 620) were passed by the Legislative Assembly on July 2, 2026, signed into law by President Bukele on July 6, and published in the Official Gazette on July 8, 2026. Under the reform, SIGET is renamed the Superintendence of Telecommunications, retaining the same acronym, and its regulatory authority is limited to telecom. DGEHM assumes full responsibility for enforcing all electricity-sector laws, including the General Electricity Law, the Renewable Energy Incentives Law, the Small-Scale Generation Concession Law, the National Electricity/Telephony Investment Fund Law, the National Electric Transmission Entity Law, and the Renewable Energy Use Promotion Law. DGEHM will also administer a new public Electricity Registry covering concessions, contracts, titleholders, and related instruments.
All electricity-related assets and budget allocations will transfer from SIGET to DGEHM, with the Ministry of Finance handling the redirection of budget funding. A transition commission (three representatives each from SIGET and DGEHM) will oversee the handover of records, files, and assets within six months of enactment. Personnel transfers are discretionary; DGEHM decides on a case-by-case basis which SIGET electricity-sector staff remain under its management. Pending administrative cases transfer to DGEHM, but ongoing judicial litigation involving SIGET remains with SIGET. Existing concessions, contracts, and registrations retain full legal validity and continuity.
The law took effect on July 16, 2026, eight days after publication. A copy of the law is available in the Official Gazette, dated July 8, 2026.
For more information, contact the U.S. Commercial Service Office in San Salvador at Office.SanSalvador@trade.gov