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Luis Carlos Solera: "The 'gourmet' fuel import is a reason of lower results"

May 24th, 2014

Covered that it was an urgent need for Costa Rica, the Costa Rican Oil Refinery (Recope) and the Costa Rican Electricity Institute (ICE) imported a bunker 'gourmet' quality, its low sulfur content, for thermal generation Garabito plant.

The bringing of this hydrocarbon was done without the Regulatory Authority of Public Services (Aresep) recognize the premium. Once the regulator approved the new tariff, Recope started a collection retroacivo ICE ¢ 10,000 million.

The Institute says ARESEP pay when so approved.

Luis Carlos Solera, head of Economic and Financial Studies Recope, told La Nacion that ICE complies expect, as both companies it traded at a joint agreement.

Why Recope and ICE agreed to bring a bunker for quality Garabito, was recognized without the fee?

This was to ensure the country's power supply. There is a particular issue of arrears of hydropower ICE and less rainfall than the higher thermal energy consumption have become necessary.

"He started working (imports) in a spirit of collaboration and understanding a national problem."

Recope was assumed a risk?

At that time the price was set lower. A collaboration agreement (between companies) was signed and it was established that the ICE accepts that imports of the product is higher and is willing to acknowledge the higher cost.

But why they initiated an administrative fee?

The administrative fee is to start the process to recover the money. I'm no lawyer, but I understand that the selected method is appropriate.

Does the ICE itself is committed to pay the Refinery?

There will be a coordination meetings in this regard.

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19 clean energy plants will operate in three years

15 initiatives are run by private companies and cooperatives

ICE is responsible for the 'Reventazón' plan and improving 'Cachí' and 'Río Macho'

May 25th,2014.

Nineteen plants generating clean energy created from renewable sources debut operations in the country in the next three years and provide up to 800 megawatts (MW) to the energy system.

This is considered the National Plan of Expansion of Electricity Generation, which includes 12 hydroelectric and wind projects with installed capacities seven; these range from 3.4 MW to 307 MW.

In the short term, the project will help meet domestic demand and reduce the purchase and the burning of fossil fuels.

Of the 19 projects underway, 15 are run by private producers and cooperatives.

Hydroelectric plants are Chucás, Torito, Capulin, The Hope of Atirro, Monte Verde II, Consuelo, La Perla and Bijagua, while the wind will Chiripa, Orosi, Tila Wind, Blue Fields, Altamira, Miramar and Winds Winds plants Pearl.

Moreover, the Instituto Costarricense de Electricidad (ICE) is responsible solely for the hydroelectric project Reventazón, plus the expansion of Cachi and Rio Macho reservoirs.

One project, the Balsa Bottom, in San Ramón de Alajuela, will the National Power and Light Company (CNFL), a subsidiary of ICE.

All these initiatives and plans for construction will be supervised by the Regulatory Authority of Public Services (Aresep).

"Since 2013 we conducted a follow-up investment plans of electric utilities, so that the rate will move only the necessary costs and related public service," said Juan Manuel Quesada, mayor of Energy ARESEP.

Next year will begin operating the largest number of projects: seven in all. By 2016 it is planned to come into operation six, and in 2017 four more.

The 19 works in the making will be located in eleven different counties and districts, spread across the country.

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Industrial expected a 'stop' in electricity increases

May 23rd, 2014

Industrialists are pessimistic about the proposal that ICE would in a week for lower electricity rates.

They are almost impossible to reduce the costs of electricity, but they do expect at least measures to contain increases.

"In the short term it is unlikely that it can be done because this is a problem which we have accumulated over many years and will not be solved overnight," said Sergio yesterday Capon, coordinator of the Committee on Energy Chamber of Industries.

At its discretion, seek solutions to the race could lead the government to make irrational decisions that create further damage to medium and long term.

Industrialists have advocated strongly for an early solution to rising electricity rates, due to its impact on the competitiveness of enterprises.

According to this sector, only in 2013 the cost of electricity grew by 30% and the discount did not have the same impact.

"Seriously, what is likely to do is to contain the growth (rate).

"If that is accompanied with a containment strategy, medium and long term, a national energy policy that drives this country into the twenty-second century, that might be safe for many people," said Capon, who participated in a forum on modernizing regulation of public services. The event was organized by the Academy of Central America.

Participated in the same activity Carlos Obregon, executive chairman of the Costa Rican Electricity Institute (ICE).

The chief said the proposal to lower electricity rates is advanced as Technical Authority had already worked on it.

This plan will be presented to the president, Luis Guillermo Solís, in eight days, as we requested .

Once used by the president, would be submitted to the Regulatory Authority for Public Services (Aresep), the only body with the power to change rates.

The cost of power was one of the most discussed issues during the recent political campaign that led to Luis Guillermo Solís to the Presidency of the Republic, from May 8.

Source: 'La Nación'

 

12 large companies of Belén request change of electricity providers

May 16th, 2014

Twelve major companies in the canton of Bethlehem asked the local council authorization for the Public Service Company of Heredia (ESPH) is the supply supplying electric service to replace the National Power and Light Company (CNFL).

Firms, among which Bridgestone Group Mit, Irex, Amanco and Brewery Costa Rica, made the request to what they consider "an inordinate and exponential increase in electricity rates perceived" as let him know the belemita municipality.

The two energy providers charge rates "medium voltage" to companies, but in the case of ESPH, the provider offers preferential payment for large consumers (3,000 kW).

"There are cases where the price difference is 6%, others up to 25%," said Laura Castro, commercial director of the Public Service Company.

A year ago, the City Council consulted belemita Regulatory Authority of Public Services (Aresep) on the possibility of allowing free competition between CNFL and ESPH.

The answer was yes ARESEP, provided that the City Council agree with this possibility.

However, council members voted in the negative.

Reasons not. "By law there is a distribution of spaces and this corresponds to the CNFL. We did consulting fees and no big difference, so we saw no pressing need to make a change, "said the then municipal president, Maria Lorena Vargas.

Alvaro Valverde, executive director of the Association of Free Zones (Azofras)-which belong many of the firms involved-is at odds with the municipal resolution issued on the 7th of this month of May, which is hereby copy.

Valverde believes that the decision is based on "purely legal" issues.

"We do not understand how a municipality denies better service offering another public company," Valverde said.

Consistent with that Allan Benavides, CEO ESPH, who said it was a mistake to give ARESEP the power to decide to the City of Bethlehem.

"It is possible that a municipality has the legal authority that corresponds to ARESEP. There are acts that affect competition, and customers will choose the provider, "he said.

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High cost of thermal generation forces ICE to import more electricity

ICE will buy $80 million this year in electricity for the region, 5 times more than 2013

ARESEP expected rates be a 5.5% lower this year, thanks to action

May 12th, 2014.

ICE said it will buy "full energy" to the Regional Electricity Market (MER) to reduce their use of costly and inefficient thermal plants, which today kilowatt costs more than twice as imported.

In fact, before the rain deficit expected by the arrival of El Niño, the Costa Rican Electricity Institute (ICE) will invest $ 80 million this year to acquire power; ie five times more than in 2013.

"We will import more; maximum energy possible to find cheaper than ours in the region "said Salvador Lopez, director of Energy and ICE country representative to the Electric Interconnection System for Central America (Siepac).

The kilowatt generated by these facilities, including the Moin, is up to ten times more expensive than that produced by Garabito, the country's most efficient thermal plant.

"We will not use our most expensive plants only because they are ours. If we can get cheaper power in the region, because we prefer that, "said Lopez.

Last March, ICE January imports tripled and doubled February. In that quarter, buying abroad was 116 gigawatts (GWh), which involved an investment of $ 36.3 million.

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