Advocacy: ICE overstates costs by asking rate adjustment

January 19th,2015

The Advocacy said this afternoon against the tariff rebalancing who asked ICE to ARESEP, considering that the Institute exaggerated the cost structure when calculating the adjustment.

Late last year, ICE has asked the Regulatory Authority for Public Services (Aresep) increased 13.2%, in recognition of a rise in energy purchases from private generators and the regional electricity market. This adjustment is being processed by the regulator.

According to the defense body, the Instituto Costarricense de Electricidad (ICE) granted the request based on the first half of 2014 and did not take into account the second, in which the economic situation varied completely. This refers mainly to the sustained decline in the international price of oil.

"The current proposal of ICE overstates the growth of the cost structure of 2014 and for the years 2015 and 2016, with consequent injury to the end user of energy," said the Ombudsman through a press release.

He added that in the setting approved as it stands, rises "disproportionate and unjustified" in relation to the expected economic situation for 2015 would be generated.

The Advocay also called the Institute underspending of a high percentage of investments authorized by ARESEP in 2010-2013 resources. This is another reason why, according to the body, should rechazársele the claim.

Carolina Mora, ARESEP spokeswoman, said the claim of the Ombudsman will be taken into account in the process of public hearing, which took place today. The results will be presented to the public in about a month.

"The hearing process is precisely for these arguments;. Each will be analyzed and even within a month will determine whether the setting is appropriate or not must review and study all the papers," said Mora.

ICE defends. Francisco Garro, director of ICE Financial Planning, said that the Ombudsman mixes concepts, categories and percentages should not be added because they correspond to different services and systems.

"The request of the Ombudsman to reject the application ARESEP reflecting all is ignorance that has that institution on tariff components," said Garro.

The alleged under-execution of budget, Randall Retana, head of the Corporate Division of Strategy and Business Development ICE Group, said:. "We exceeded almost all the goals outlined in the National Development Plan in generation, distribution and transmission This represented a enormous technical and budgetary challenges that led to the development of large investments. "

When the application for adjustment of 13.2%, Carlos Obregon, president of the Institute, said that this will be offset by an equivalent percentage decrease in the Variable Cost of Fuel (CVC) due to reduced fuel purchases during 2015. That is why, he said, approval would not affect current rates paid by users.

Maintain stable electricity rates was the promise made Obregon hand with President Luis Guillermo Solis, from the beginning of his term last year.

Editor's Note: This information was modified at 6 pm

Source: "La Nación"