Bolivia announces expropriation of four Iberdrola subsidiaries

Bolivian President Evo Morales decreed on the 29 December 2012 the expropriation of four subsidiaries operated by Spanish power giant Iberdrola in the Latin American country.

The government alleged that the companies were charging consumers in rural areas more than twice the going rate, and said the move would ensure better service and coverage for all parts of the country.

This was the second nationalization of a Spanish-controlled business in less than eight months. In May 2012, Morales expropriated Transportadora de Electricidad, a firm owned by Red Eléctrica de España, and was yet to offer compensation.

• Primary Source

BBC News, 29.12.12: Bolivia takes over Spanish-owned energy suppliers http://www.bbc.co.uk/news/world-latin-america-20867595

ESO: Background information: EU to retaliate for Argentina’s YPF seizure http://www.europeansources.info/record/eu-to-retaliate-for-argentinas-ypf-seizure/

ESO: Background information: Relations between Peru and the European Union http://www.europeansources.info/record/relations-between-bolivia-and-the-european-union/

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