ICE and Recope try to charge users a millionaire error

Authorities will send to ARESEP rate adjustment request before year-end

Refinery sold fuel at lower prices to the Institute during three years

August 21st,2014.

The Costa Rican Petroleum Refinery (Recope) and the Costa Rican Electricity Institute (ICE) try to convey to consumers a million dollar loss that was generated by an error in buying gourmet bunker for thermal plant Garabito.

Majid Brenes, legal director Recope confirmed that both institutions will, before the end of the year, a joint approach to the Regulatory Authority for Public Services (Aresep) to retrieve ¢ 10,000 million.

However, it is not yet decided whether the eventual adjustment will be assembled at the rate of oil or electricity.

"We had meetings to go debugged numbers and reach a joint approach to ARESEP because both institutions are entities with regulated prices", said Brenes.

The Office referred inquiries to ICE, but no answers.

However, the Institute disagrees with pay ¢ 10,000 million Recope until ARESEP not recognize it via rates, argued last May, Luis Pacheco, manager of Electricity. The refinery began at the end of 2013, the administrative fee to ICE.

Basis. Recope imported gourmet bunker, exclusively for ICE, at a lower price between December 2010 and June 2013, the study estimates the losses incurred by the sale of low sulfur bunker ICE. Garabito operates with gourmet by technical recommendation, it has less sulfur than regular.

Since inception, both institutions knew that would generate a loss, but established an agreement in May 2011, for the purchase of the fuel, although tariff-was not recognized.

Under the agreement, ICE agreed to pay the additional cost of imports, relative to the regulated price, but even when ARESEP establish the new cost occurred in July last year.

When Recope tried to make the chargeback, ICE refused to make payment. The argument was that the entity overrun the bunker, which was paid for a period of nearly three years, did not have the backing ARESEP.

Luis Carlos Solera, head of Economic and Financial Studies Recope, said he brought the most expensive bunker in order to ensure the country's power supply.

Indeed, the manager of the ICE said the same argument. ARESEP be the entity that has the last word on the dispute of the two companies once you analyze and resolve application rate adjustment.

Source: 'La Nación'