ARESEP impossible estimated brake light increases

ICE would risk their own finances with fixed prices for 18 months

Accomplish promise of Government involves annular methodology to pay for thermal

October 04th,2014.

The electricity costs will go up again in January, although the government promised in July to continue stable for the next 18 months.

This is the warning ARESEP launched on the basis of the implementation of the charging current methodology and projections.

Dennis Melendez, chief of the Regulatory Authority for Public Services (Aresep) said that far from being a surprise, rising light for early next year is a bad expected.

2015 will be no different: the low rainfall, typical of the first three months of the year, causing a drop in hydroelectric generation plants.

For this reason, it is necessary to recognize the Instituto Costarricense de Electricidad (ICE) buying more fuel for heat production.

How to fulfill the commitment of the rate stability? Melendez made it clear that this will only be possible if the Institute jeopardizes their own finances.

Alert rise was reflected in a letter dated September 24, addressed to the head of ICE, Carlos Obregón, and copied to the Presidency of the Republic.

In the letter, Melendez said Obregon that the only way to fulfill the promise is that the ICE renounce the variable cost of fuel (CVC) method.

This methodology, in force since January 2013, forcing users to pay to ICE via fees, purchases of bunker and diesel.

Every three months automatically, ICE receives money according to what he spent and according to their disbursement projections for the next quarter. CVC adjustments are cumulative and so far seven have been applied.

The proposed Obregon Melendez is requested, to the Board of ARESEP, the repeal of the mechanism that gives the guarantee of ready income.

"We have suggested that, if the goal is to keep the country a flat rate throughout the year, the ICE would have to ask ARESEP removing the current methodology, which would return to the previous system," Melendez told La Nacion.

The inability to keep electricity rates despite the promise, led to the Chamber of Industries to tag the ICE inconsistent.

According to industry, the electricity tariff is the main factor of loss of competitiveness, which has led businesses to shut.

Ricardo Solera, Deputy Speaker reported that between January 2013 and July last, the sector lost 6,366 jobs.

Read more: "la Nación''