His announcement came just two days before highly-charged municipal elections set for May 9. Rival political parties had decried the hike as an example of the ruling MAS party's insensitivity toward the populace. Officially, the price increase is to offset losses resulting from elimination of government subsidies last year. They said customers should not pay bills that show increases of more than 60 percent. Peaceful protests against the increase dominated the nation's annual May Day march.
Several unions warn of work stoppages if the government insists on going through with the increase.
Human Rights Ombudsman Ramiro de Leon is said to be considering a suit against the electric utility for violation of economic rights. He blames the International Monetary Fund for pushing through a hike he says will further impoverish the 85 percent of Guatemalans who already live in poverty. Meanwhile, he says, rates paid by large businesses will be frozen. Peace Talks at Critical Impasse Government and rebel negotiators are accusing each other of responsibility for the failure of the latest round of peace talks in Mexico City. No progress was reported, and the round ended without a date set for new talks.