banner
banner
banner
banner
banner
banner
banner

Inevitable rise in electricity

It is impossible to contain the increase in electricity rates during the 18 months requested by the Government

During the last year, imports were cheaper than the generation in four of the eight national thermal power plants

October 08th,2014.

The Regulatory Authority for Public Services (ARESEP) finds it impossible to contain the increase in electricity rates during the 18 months requested by the Government to conclude the study of alternative energy policy.

In January, the rainfall will require the generation of electricity from fossil fuels and keep frozen rates jeopardize the financial health of the Costa Rican Electricity Institute (ICE). The problem is not at the discretion of the authorities. On the one hand, is the product of the forces of nature. Furthermore, meets the requirements of the law, in this case, the existing tariff model.

The only solution proposed by ARESEP to bring reality to the wishes of the Executive is to modify the methodology for setting rates to defer the cost of thermal energy. Not really a solution, but a postponement of payments that people should do, sooner or later, after the time period of stable rates.

To achieve this, the ICE should ask ARESEP not applying the variable cost of fuel (CVC) quickly adopted to compensate the state enterprise spending on oil imports.

Removal of CVC force the ICE to submit in January a projected annual costs to calculate, from it, to a flat rate throughout the year. If the fee is not enough to cover the cost of fuel, ICE must submit a hard to adjust rates next year. In addition, the institution risks suffering from lack of financial imbalances expeditious compensation.

The problem, of course, is not ICE, but of the national population. Despite the sharp contraction of domestic electricity use, users are now paying a hefty bills compared to the recent past. The industry, meanwhile, says it has lost 6,366 jobs between January 2013 and July just passed. The loss is attributed to the decrease in competitiveness, largely due to the cost of energy input.

Some companies, say industry spokesmen, have been forced to close or at least neighboring countries to transfer processes whose electricity usage is intensive.

Read more:'La Nación'

 
  • 2011 © ASI Power & Telemetry, S.A. All rights reserved.
  • |
  • info@ASIpower.com
  • |
  • Toll-free +(866) 402-2482

ASI Power − we make renewable electricity easy

Designed by AVOTZ WEBWORKS and Kate