Pending commitment with the electricity market

October 30th,2014.

On May 29 Regulation Regulatory Harmonization between the National Electricity Market and the Central American Electricity Market was published in the range # 98 of the Gazette, (MEN and MER, respectively), 10-41-2013 based on the agreement of the Board of the Regulatory Authority for Public Services (ARESEP), which in its title IV of the Final Provisions stated the following:

1. ICE ARESEP notify the administrative decision taken on the decision of assigning the functions of the system operator and market operator (OS / OM). Such notice must be performed within 30 days of publication of this resolution (Article 106 Determination of OS / OM and deadline for implementation).

2. ARESEP issued 30 days after publication of this resolution, the guidelines for national and regional actors do their registration with this entity (Article 107 Registration of agents and MER MEN).

3. Within a period not to exceed two calendar months from the date of the enactment of this legislation, the Instituto Costarricense de Electricidad (ICE) and its subsidiaries (...) proceed to create, through the relevant administrative body business units to identify and develop the activities currently carried ICE and its companies, consisting of generation, transmission, distribution and marketing (Article 105 Period for creating business units).

Notwithstanding the foregoing and dependability that lines the publication of a regulation by ARESEP, it is noteworthy that, to date, five months after publication of the regulation and defeated all the time, nothing is known about the efforts that are making ICE and ARESEP on these issues. Those interested in the scope of Regulation Regulatory Harmonization, and with some degree of participation in the industry, we expect to know the actions on these issues, are running these institutions, for the sole purpose of being able to plan the management of our activities short and medium term. Lack of timeliness generates uncertainty does not favor the development of the electricity market from the perspective of those who are interested in its evolution, growth and strength.

There is no doubt that ICE plays a fundamental role in the country's power industry, and MER and ARESEP, the issue of regulation, but no less important is the role that will eventually develop other market players. In this regard, it should be noted that for the smooth operation of the national electricity market in line with the regional, require clear policies and regulatory compliance, as applicable in the case of the Final Provisions of the regulation in question.

Very respectfully, I urge ARESEP and ICE to arrange needed to comply with the provisions in the Final Provisions. Thus, the institutional structure of the electricity industry is not compromised, but rather justifies and validates the performance of their duties, sending signals actors clear about the administration and the regulatory framework that should prevail in any regulated market .

Otherwise, the leaders of these institutions should rule on these issues and explain why the delay on schedule or if the provisions issued in Regulation are misplaced. This position may be entirely valid, but at least require the due justifications of silence that has prevailed to date.

Despite this, I hope to soon have my hands on the guidelines for national and regional actors can do their registration with ARESEP. Thus, all agents of the regional market can evaluate the future scope of work in Costa Rica, in the context of national and regional electricity market.

Source: 'La Nación'