Household down electricity consumption by high rates

Using light houses edged up 0.07%; in the industrial sector increased by 0.50%

Low demand accounted ¢ 43,000 million shortfall in revenue ICE

May 30th, 2014

Slow economic growth and high rates led many households to turn off the light bulbs and light industries to less engines.

As a result of these measures, electricity sales measured in megawatt hours (MWh), grew only 1% in 2013, compared to 2012 placements.

The percentage increase is well below the 4% projected by the largest energy producer in the country, the Costa Rican Electricity Institute (ICE). Also away from the 3.67% reported in 2012.

"Low income shrank demand for electricity in the differential (3%) and profitability fell at the same rate," he acknowledged in late April, Teofilo de la Torre, who at that time presided over the Board of ICE.

According to data from the Regulatory Authority for Public Services (Aresep) in housing growth in electricity consumption last year was almost nil, 0.07%.

Meanwhile, the industrial sector rather had a decrease in demand closer to 0.50%.

For Juan Manuel Quesada, mayor of Energy ARESEP, a decrease in electricity demand may be because people consume less because it has a high price signal, or contraction of the economy.

"It may also influence energy efficiency; a consumer with the highest cost is more aware of the use, "said the mayor.

According to the industry, in 2013 the rates for the sector grew nearly 30% subtracting competitive companies.

Due to high prices, some companies enrolled in energy efficiency plans to lower bills, Sergio told Capon, coordinator of the House Energy Industries.

According to that entity, the companies participating in the programs achieved savings of up to $ 100,000 per year; 6,000 kilowatt hours (kWh) in the same period.

In addition, 2003 was characterized by low economic growth. Gross domestic product (GDP) reached only 3.5%. Such figure coincides with the monthly index of economic activity (MIEA), with close to previous December. This indicator measures changes in the physical production of goods and services.

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Industrials are urging for low in electricity to gain competitiveness

Electricity bill is the biggest obstacle to industry growth, entrepreneurs say

Suggest to exonerate bunker and diesel generation and review finances of ICE

May 29th,2014

The cost of the electric bill is, to industry, the biggest stumbling stone to the competitiveness of this sector.

This view is reflected in the assessment of business prospects and competitive factors of the 2014 studio Rican industrial sector.

The report, prepared by the Chamber of Industries of Costa Rica (ICRC), was presented Tuesday to President Luis Guillermo Solis.

Quotation took the guild to insist, before the president, on the need to reduce electricity rates.

Among other alternatives, entrepreneurs suggest the exemption in the payment of taxes on fuels used for electricity generation. These fuels are the bunker, you pay 22 ¢ per liter flat tax, and diesel ¢ 135. We further propose a reengineering of the finances of the Instituto Costarricense de Electricidad (ICE), to bring down the financial burden on the cost of electricity production in the short term.

Against Solis also advocated strengthening and continuing the actions of regulatory reform, including the simplification of procedures, technical regulations and market surveillance.

Welmer Ramos, Minister of Economy, participated in the meeting and said that the power issue is of great concern to the Government, but not the only one.

"There are many additional factors that are holding back overall economic activity, development and production of wealth in the country," Ramos said.

Little optimism. According to Juan Ramon Rivera, president of the ICRC, the industry warns 2014 as a year of little dynamism in industrial production and stagnation in hiring.

In Rivera criterion, except in rare cases (such as safety), there have been few significant advances in the factors that influence the competitiveness of the sector.

Regarding electricity, he added, rather it has been reversed, and for the fourth consecutive year ranked first among the factors that negatively affect the industrial way.

For Rivera, Costa Rica has been becoming the last four years in an increasingly expensive country for this production.

The union industry in 2013 noted that the electricity bill increased about 30% and the discount did not have the same impact.

Moreover, this Friday as the deadline given by the Government to the President of the ICE, Carlos Obregón, to present a plan of options to reduce these rates.

Obregon said the proposal involves a complete overhaul of all components that affect the cost of electricity rates.

Source: La Nación

ICE buys less energy to local cogenerators

Acquisition of electricity in Central american gaining more value

Less production due to lack of rains forced to come to the Isthmus, says entity

May 29th,2014.

The Instituto Costarricense de Electricidad (ICE) buy less and less energy to local cogenerators.

In 2013, the state company ¢ 27.583 million allocated for the purchase of electricity to private companies, which was 38% compared to 2009 when the expenditure was ¢ 44.296 million, according to the audited financial statements of the ICE Group.

In fact, in the last five years, sales of local suppliers to ICE lost weight, then went from half the total energy purchases in 2009 to 36% last year.

The low hydroelectric generation, reduced engagement of private providers and the lack of rate adjustments cogenerators, underlying the reduction in power purchase local companies, according to the ICE and the Costa Rican Association of Power Producers (Acope).

To meet energy demand, the company decided to raise state purchases in the Central American market.

In 2013, it acquired more regional providers of ¢ 17,000 million. But this year, ICE made a record purchase of ¢ 26,000 million.

The Institute also has contracts with private companies bidding to build, operate and transfer (BOT, for its acronym in English) that are leased for periods of 10 to 15 years, and then become the property of ICE. These accounted for 42% of spending power purchases in 2013.

Over the past year, the Institute spent a total of ¢ 76,726,000 in buying power, according to its financial statements.

Reasons. Cogenerators retail sale to ICE Group occurred because state company stopped hiring local suppliers, said Mario Alvarado, executive director of Acope.

"The local private sector has lost share of the total growth of the electricity sector in recent years," he said Alvarado.

Another factor is the lack of rain during the past three years, impacting local hydropower stressed Luis Pacheco, manager of the ICE.

This is the reason that the state-owned resort to regional energy market.

"The import permits provide a benefit to users to replace thermal generation," said Pacheco.

Juan Manuel Quesada, mayor of Energy Regulatory Authority for Public Services, said that limiting the ICE to acquire energy in the Isthmus, is that it can not be generated face here.

Source: La Nación

Recope lost ¢ 10,000 million for sales of bunker to ICE

Refinery started charging, but Institute refuses to pay until ARESEP ordered

Resources would be recovered via rate adjustment, as both institutions

May 24th, 2014

The Costa Rican Petroleum Refinery (Recope) lost ¢ 10,000 million by selling fuel below its actual cost, the Costa Rican Electricity Institute (ICE).

This study indicates the estimate of the losses incurred by the sale of low sulfur bunker ICE, last November 28 and made ​​by Recope which has copy Nation.

Marketing of oil supplied, between December 27, 2010 to June 11, 2013, the thermal power plant ICE Garabito of Puntarenas.

The report noted that, during those two and a half years, just over 390 million liters of fuel were imported. This had a cost of over ¢ 134,000 million for the Refinery. But the Institute paid ¢ 124,000 million.

The difference occurred because the rate authorized by the Regulatory Authority of Public Services (Aresep) was for a lower quality hydrocarbon and not for the bunker known as 'gourmet'.

However, Recope and ICE established a joint agreement in May 2011 for the importation of that fuel, although tariff-was not recognized.

According to the agreement, ICE agreed to pay the additional cost of imports, relative to the regulated price, but even when ARESEP establish the new cost.

The Regulatory Authority issued the new rate for the low-sulfur bunker in June 2013.

At that time, did Recope calculating your loss and began, in late 2013, the retroactive payment to ICE administratively confirmed Luis Carlos Solera, head of Economic and Financial Studies Refinery.

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