Opposition revives plan to raise private electricity production

Change of power in Congress allows project resurrect buried by Solis

May 21st,2015

The block of six opposition benches, which dominates Congress since May 1, revive the idea of ​​raising the participation of private companies in electricity generation in the country.

Lawmakers raised break the current ceiling of the private contribution, fixed at a maximum of 15% of national production, according to Law No. 7200.

The proposal is one of the commitments that joined the deputies of the National Liberation Party (PLN), Social Christian Unity (PUSC), Libertarian Movement, National Restoration, Renovation and Costa Rican Christian Democratic Alliance parties to bring the Citizen Action Party (PAC) control of Congress.

With the dominance of the Board and of the legislative committees, the opposition bloc may now reopen the discussion on the increase in private power generation, an issue that the government of Luis Guillermo Solis buried during his first year as unnecessary.

Liberationist deputy for Antonio Alvarez Desanti, private participation could even go beyond the 30% proposed by the administration of Laura Chinchilla in the proposed electric contingency, which also advanced in Congress.

Commitment. "In the election campaign, almost all groups, excluding the Frente Amplio, spoke of the urgent need to reduce electricity tariffs (...). One of the most serious problems facing Costa Rica is the cost of electricity , "Alvarez complained.

According to the legislator, the price of energy is one of the factors that drive away private investment, which negatively impacts employment, therefore, in the first quarter of this year, 10.1% of the economically active population is unemployed.

The head of the libertarian Otto Guevara, said the proposal for greater private involvement could run either a new project or recovering the record of eight volumes called law of Electrical contingency (18,093) resting in the Committee on Affairs agricultural.

Although the issue came under discussion during the administration of Oscar Arias (2006-2010) and Laura Chinchilla (2010-2014), it was ruled by the current government during a hearing of the now former Minister of the Presidency, Melvin Jimenez to Agricultural Affairs Commission .

On that occasion, both Jiménez as president of ICE, Carlos Obregon, said that the project was not necessary. Yesterday, before a consultation of the Nation, the Costa Rican Electricity Institute (ICE) reaffirmed its position that it is not necessary to open the market.

The manager of the ICE, Luis Pacheco, said the Electricity Expansion Plan has covered the need of the country until 2035.

"With the evolution of domestic demand and the real opportunities of the Regional Electricity Market (selling energy between Central American countries) is adequately meets under expansion plan is underway and expected the country's needs until 2035, "Pacheco said.

Today, the Institute generates 74% of electricity in the country; 15% private companies and 11% electric cooperatives and municipal utilities.

Read more: "La Nación"