ARESEP: 'For electricity reduce it needs to change laws'

Industries are demanding that high cost in electricity bills less competitive in the country

Regulator Entity analyze proposal from Acograce to transfer the costs of the industrial bills to households

November 03,2013.

For Costa Rica have lower electric rates, the mayor of Energy Regulatory Authority of Public Services (Aresep), Juan Manuel Quesada, said it is necessary to make changes in national legislation.

In its proposal notes that within the modifications should be allowed to cut ARESEP excesses in investment costs of the utilities.

"In addition to regular business costs is necessary to promote greater use of the geothermal potential of the country and eliminate stop shop that can perform ICE to private generators," said Quesada.

According to the mayor, these changes would include in rates only efficient financial costs and reduce the use of thermal energy, which is more expensive.

The chief executive of Costa Rican Electricity Institute (ICE), Teofilo de la Torre, acknowledged that the weight of the electricity bill has reduced the competitiveness of Costa Rica and natural gas exploration could be a future option for improving rates.

"At least there should be a natural gas action to help diminish the price escalation. It is not something that will be achieved in the short term because they are processes that last for years, but I think that is pulling in the right direction, "said de la Torre.

About this action, the mayor of ARESEP agrees that is a necessary discussion from the Legislature.

Carlos Montenegro, deputy director of the Chamber of Industries of Costa Rica (ICRC), said that in 2013 the rates have increased 30% and propose an adjustment of tariffs for all sectors.

Meanwhile, the Costa Rican Association of Large Energy Consumers (Acograce) proposes that a portion of the costs of tariffs move to homes, offices and other business customers electricity.

"As for the viability of the proposed industry I can not comment, because it is pending a petition fare in this regard and whose hearing is scheduled for November 13," said Quesada.

The growth of electricity demand dropped this year to 1%. Last year, the growth was 4%. That equates to a total of ¢ 18,000 million colones less than what was expected raise.

The president of ICE maintains that the factors that led to the fall were energy savings in homes and offices as well as the fact that industries have sold less.

To avoid unnecessary future increases in electricity bills, makes inspections ARESEP investments sought by power companies.

"In the last year we have incorporated in the tariff analysis inspections of investment projects that allow competitive remuneration," said Quesada.

ICE expects new hydroelectric plants, the renegotiation of debt and savings plans of the institution down the weight of the electric bill.

Source: "La Nación"