Minae wins pulse ARESEP: Attorney dictates that distributed generation to consumption is not public service

ARESEP argued that law provided that itself was a public service

Ministry must enhance service regulation for regulation

July 02nd,2015

The Ministry of Environment and Energy (MINAE) won the pulse of the Regulatory Authority for Public Services (Aresep) and the Attorney General's Office (PGR) ruled in a report that the distributed generation for self-consumption small (solar panels or wind turbines ) is not a public service, as established by the regulator.

After consultation of the chief of the ministry, Edgar Gutierrez, the PGR in its report C-165-2015, dated June 25, 2015, it indicates that the "provision is a key element of activity in public service, so an activity that is not of benefit to the public can not be considered public service. That is the case of the distribution of electricity for self-consumption ".

ARESEP argued that legally distributed generation for consumption (known as single netting) was a public service . Arguing that would connect to the distribution network by Regulation Poasen defined technical conditions that were required and only remained the authorization certificate from Minae.

For PGR, it is not a public service because it is not intended to supply power to the end users and points to the ministry as the lead agency to be defined by public policy. Specifically, the policy also distributed generation.

"The PGR does is confirm the position that the ministry had distributed generation to consumption is not a public service, therefore the consumption need not be regulated by ARESEP" said Gutierrez minister.

Regulation almost ready

The Minae already has ready a regulation on this issue due out for consultation in the coming days. This should include some views targeted by the PGR and once you go through the consultation mechanisms will be the Ministry of Economy, Industry and Commerce (MEIC) to set the regulatory standard.

"Netting is simply consumption, ie no sale of energy to anyone. I generate solar or wind power, the use and if I need the use of the network, like any user (...) One of the options is that I generate energy, stored in a battery and used later ( ...) If I have, I am connected to the network and the distributor where I live have to set the fees to be paid; either toll interconnection backup or "described the hierarch.

ARESEP chasing canceled the subscriber monthly cost of access to the network, established a tariff schedule in effect at the time of billing. Distributed Generation concession (referred to as compound netting) provides that if the person produces more than it consumes, the distribution company must pay.

"Yes there is a sale of service, I am generating and injecting into the network. In this sense whether it should be regulated by ARESEP "he added the minister.

Interpretation of law

Gutierrez said that after hearing an opportunity to Dennis Melendez, General ARESEP regulator, 'understood' that the agency did not want to work in the simple netting. "It understood that he had to work on that and I should be the Minae" outlined.

"At some point you are right, there is a logical sense, ARESEP is the regulatory and the big question was if I generate energy for their own consumption should be considered a public service. Took the next step, to do so by decree before the State Attorney (PGR) told us that this was the path to follow, "said the official.

Erick Rojas, vice president of the Chamber of Distribution Companies Energy and Telecommunications (CEDET) who acuerparon to Minae, they said satisfied in the sense that the PGR 'waist puts' to ARESEP and tells you the rules, along with issued rates, no reason.

Source: crhoy.com