Energy assistance programs in Ibero-America and their adaptation to the COVID-19 pandemic

Abstract

Ibero-America, a region with high levels of pre-existing poverty, has been considerably affected by the pandemic. Several regulatory measures have been implemented to provide additional financial assistance to the population. Due to the significant fiscal expenditure involved in universal subsidies, several countries have decided to target resources to the most vulnerable sectors. However, the literature focused on these targeted subsidies and beneficiary selection mechanisms is scarce. This article presents a descriptive review of the targeted subsidies implemented in eight Ibero-American countries during the COVID-19 pandemic, the targeting mechanisms, and the modifications made to pre-existing subsidies to adapt them to the health crisis. The research was conducted with the support of regulators from the countries studied and demonstrates that the Ibero-American regulatory response is in line with measures implemented internationally. By showing a catalog of regulatory measures implemented during the COVID-19 pandemic, this article is relevant for policymakers to face future health crises and any scenario that forces the population to be confined in their homes, including extreme weather events.