CNFL drowning in debts and ¢ 7.000 million in losses

Indebtedness of the company increased a 139% from 2010 to June 2014

New head of the organization said that he will present a tariff adjustment in September

August 14th,2014

Compañía Nacional de Fuerza y ​​Luz (CNFL), responsible for bringing electricity to 520,000 citizens are drowning in debt and June, recorded ¢ 7,000 million in losses.

In three and a half years, the level of indebtedness of the subsidiary of ICE increased 139%: it went from ¢ 117,000 to ¢ 279,000 million million.

To this is added that instead of investing ¢ 90,000 million in the prevention and maintenance of its electricity distribution network, as it should have done in the last three years to ensure the optimal level of service, the company did so only for ¢ 46,000 million.

These data are revealed yesterday Victor Solis, CEO CNFL since last June 30. Solis arrived at the position following the retirement of former hierarch Pablo Cob. The officer was forced into retirement by the government of Luis Guillermo Solís, after serving just over 20 years linked to the Energy sector.

The brand new found manager said with a serious financial imbalances-in the company they work for 2,300 people-product of poor management. Duplications brought up in certain areas of production.

"More than you cause layoffs, we want to generate more activities that bring more revenue," he said.

Solis said that impact service users is not an option and said that in February announced concrete solutions.

What caused it? Over the past three years, the company made ​​investments juicy, especially in the case of Balsa Lower Hydroelectric Project. The original amount planned for ramonense plant was ¢ 65.000 million but ended up costing ¢ 167,000 million.

That extra outlay increased debt levels CNFL, so had to resort to financing the Instituto Costarricense de Electricidad (ICE).

For this reason, in 2013 signed an agreement with ICE for ¢ 16,000 million at June, came to ¢ 25,000 million. If the income and expenditures of the company are added, it is concluded that for every ¢ 100 which must have incomes 68 ¢.

Cob said yesterday that its final management report does not fit the data revealed his successor. He argued that while he was managing the assets and equity increased by over 90 and 83 times, respectively.

Read more: 'La Nación'