ARESEP rejects increase of 12% for electricity rates in Cartago

Jasec submitted application based on incomplete and inconsistent data

According Jasec, strong summers, lack of self-investment and negative differentials to apply the methodology og ARESEP justified increase

August 12th,2014

Some 89,000 Carthaginians not have to pay more on your next electric bill because the Regulatory Authority of Public Services (Aresep) rejected the request Jasec 12% increase in electricity tariffs.

That is, a household consuming 200 kWh per month will still pay ¢ 14,600 instead of ¢ 16,000 requested by the Administrative Board of the Municipal Electric Service Carthage (JASEC). That request had been approved on May 16, the residential rate would have risen from 73 ¢ per kilowatt (kWh) to 80 ¢ per kWh.

According to ARESEP, the claim was rejected due to "differences in the figures presented in the rate study regarding the audited financial statements, the lack of allocation of common costs to individual activities carried Jasec and justifications inadequate to assess costs and investments. "

These failures will prevent the regulatory body to perform a comprehensive analysis of costs associated with the provision of the service, by law, are the only ones that can be transferred to the rates paid subscribers analysis.

"We are becoming more rigorous in analysis and information such requirement. Our commitment is that we post rates are those that really need to be duly justified and with sufficient technical support, "said Juan Manuel Quesada, mayor of Energy ARESEP.

Delayed investment. Ante up the brake applied by the regulator, the Jasec indicated that is respectful of the decision, but that the measure can not compensate for the Variable Investment Cost (CVC) and the development is delayed.

According Jasec requested increases were justified by negative differential in the application of the methodology established by CVC ARESEP, reducing own generation veranos- strong reflection of the region's own development and investment.

Given what happened, the Jasec assess whether or not present, a new rate request, according to a press release says that entity.

(Update at 6:55 pm by journalist Hugo Solano position Jasec)

Source: 'La Nación'