Carlos Obregón:'It is difficult to lower the electricity rates, but there's possibilities'

Interview

April 17th, 2014.

Engineer Carlos Obregon assume the reins of the Costa Rican Electricity Institute (ICE) on May 8. Yesterday I spoke with the Nation of its main challenges.

What will happen to the hydroelectric project Diquís?

My view is that the project requires Diquís system. Therefore, you should go ahead. For that we must seek a consensus. I believe this government will be characterized by transparency, dialogue, seeking support for the important work for the country, not just power.

What measures will, and that may give short-term results, to lower electricity rates?

We have already cited several elements to be analyzed in detail. One is the fuel tax. If this tax eliminated, the percentage reduction in rates is very low. Another is a possible reduction in the sales tax, but also has an impact on state revenues. The other is a financial engineering because there are projects already in operation, you are paying and financing conditions could be improved; understanding that no problem because each game has specific rules.

If the sales tax or the fuel touches generates a fiscal gap. Speaking sincerely. Is it possible to lower electricity rates in the short term?

At the moment we think so. Understanding that is something that the next government will inherit. And understanding, too, that as there is a lower interest rates has to do everything to it. I understand the concerns that you have. Personally, I think it is difficult to lower rates, but which, however, there are possibilities and we are analyzing.

Apart from fiscal options, I'm considering financial engineering and review of the variable cost of fuel. We must also consider the possibility of a fare medium voltage for the industrial sector.

Would it include assessing administrative costs as a return?

We must make a full assessment. What impact do lists, inventory costs, purchasing power, how it is giving buying power. If you need to see how the electric backup runs that ICE gives other companies and their absolute priority costos.Será take all these elements and analyze them in detail and in very short time.

What would be the short term?

The smallest possible. It would be this year.

You are pro ICE. Luis Guillermo Solis said that to lower rates if necessary open space for private generation is going to do. What is your position? Have you also softened its stance?

It is exactly the same of the president (elect). What happens is that all laws lawsuit has been here for more private sector participation in development projects. By what you have to orient the discussion is to determine all the factors that affect the rate and see if the increase in private generation produces a benefit in the cost of fees.

With the latest energy purchases showed that the private sector can provide cheaper energy than the Institute itself can produce.

I'd say that is not proven yet.

Course is shown. Private offered more casualties than the ICE or CNFL rates.

No, no. I still do not share that view.

The numbers say so.

No, I'm going to say. The ICE has built and paid plants that give the lowest energy costs.

But it also has plants like carisísimas Pirrís case.

You have other plants that play different roles in the system and have different sizes. What I want to say is that one can not start from the fact that, in my opinion, is not yet proven. One thing is the cost of purchase and other is the effect of the purchase of private power within the system, or the rate as a whole. So one of the things that we have established is that there should be full transparency.

No transparency is there today?

I mean in the sense that we have to generate instances of open discussion and explain to everyone how the system groups, what are the characteristics of different types of energy, why to use the thermal functions.

Source: 'La Nación'