Electricity rates will fall between 2% and 8% from July

June 25th, 2015

ARESEP approved a reduction of 13.6% in prices for energy generation ICE, implying a lowering of between 2.5% and 8.5% rates of seven power distributors in the country, from July .

Thus, prices for subscribers of the Costa Rican Electricity Institute (ICE) will fall by 7.9%, while the National Power and Light Company and the Public Service Company of Heredia (ESPH) will fall by 8 5%. The Administrative Board of Cartago Electrical Services (Jasec) apply a reduction of 8.3%.

The new setting implies a 2.5% cheaper for customers Coopelesca; Coopesantos 5.2% to 7.4% and for Coopealfaroruiz.

For example, for a family that consumes 250 kilowatt hours (kWh) per month, adjusting means a monthly saving of ¢ 2,018, if user of ICE, and ¢ 1,543 client if the CNFL.

Coopeguanacaste be the only distributor to apply an increase of 4.7%. This because, according ARESEP during the process of extraordinary adjustment was approved for the company a regular study, in order to offset their energy purchases ICE.

The new prices approved by the Regulatory Authority for Public Services (Aresep) governed from 1 July to 30 September.

Why low? This setting is relevant to the methodology of the variable cost of fuel (CVC), which depends on oil expenditure incurred by the ICE for thermal generation during the previous quarter.

In this case, the reduction in burning fossil fuels was reflected in a drop in generation costs ICE and, therefore, results in a lowering of the energy the Institute sells to distribution companies. According ARESEP, projected spending on fuel for the third quarter of 2015 is 80% lower than estimated for this purpose in December 2014, which corresponds to transfer that benefit to electricity users.

Source: 'La Nación'