Costly plant hire raises invoice for ICE clients

Entity recognizes and evaluates impact and let charging users in 2014

ARESEP alerted the rapid growth of leases at the Institute

October 11, 2013

The rental cost of power plants is going high bill at the Costa Rican Electricity Institute (ICE) and its customers.

During the past seven years, the average cost for the lease of works grew 40%. The company paid in 2006, ¢ 13.796 million in operating leases and, last year, closed at ¢ 55,624, according to the ICE and the Regulatory Authority for Public Services (Aresep).

The sharp increase is passed on to users and ARESEP is required by law to accept them.

During this year, electricity rates rose by 30%, partly as a result of fuel and operating expenses.

Leases are gaining ground in the cost structure of ICE. Were 15.36% of operating expenses between 2010-2012, and will grow to 19% between 2013 to 2015, says the ICE.

Teofilo de la Torre, chief of the institution, told The Nation that another year will try to load only the value of the depreciation of works, which is a third of rental expense.

Reason. Given the lack of resources to invest, ICE uses financial mechanisms such as trusts or lease credits to build plants.

In the first figure, the state built the Peñas Blancas hydroelectric dams, Tern and Garabito thermal project in Puntarenas Gold Montes.

In the three was used securitization Trusts that issued bonds in the local market, to raise money and do the works. ICE is committed to pay the monthly lease trust and at the end of the contract, the total money.

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