Minae opens to allow more private generation

Minister backs upwards only if environmental and social safeguards are being applied

Acope questions technical justification for defining buffers and discrimination claims

October 25th,2014

The chief of the Ministry of Environment and Energy (Minae), Edgar Gutierrez, seen as an option to raise the ceiling to which they are forced to undergo private power generators in Costa Rica.

These companies and electrification cooperatives can not exceed 15% of the installed capacity of the National Electricity System (SEN), now 2,776 megawatts (MW). This was established by Law 7200 of 1990.

"Why set a percentage of participation? If there is a law to protect rivers and safeguards be established ... When prices are lower, why not buy? (...). Congratulations come these projects, "said the minister.

Gutierrez said that before considering the rising top three safeguards must be established: environmental stewardship, benefit sharing between the communities surrounding projects and studies on the cumulative effects of watershed.

Recent contracts approved by the Costa Rican Electricity Institute (ICE) 2015 - 220 MW of additional power - marking the arrival of private maximum limit.

Outraged. Mario Alvarado, director of the Costa Rican Association of Power Producers (ACOP), demanded an immediate stop rising. He claimed that the attachment is a discriminatory act that limits the private sector.

"There is no technical justification; caps are a political decision. The sector is able to compete as it should, "he said.

The minister admitted that individuals should have a greater and more equitable participation in the SEN in relation to the state Institute- and could serve to further support.

Depending on the time and power, the kilowatt hour (kWh) of private are cheaper than some produced by ICE, even in this there are also limitations: December is established that the existing private no matter what energy source trate- must sell 37 ¢ kWh.

Since I found that their prices could fall further, the Regulatory Authority for Public Services (ARESEP) seeks to modify the methodology prevents them from creating bands for existing private and flexible floor for the new band.

With ARESEP Minister agrees: "I do not approve of matching homes. The laws of the market, including lower prices, better competition. That would help lower electricity rates, "said Gutierrez.

Asked about the possibility of removing the floor of the band, Obregon merely stated that that is the sole power to ARESEP.

Today, ICE generates 74% of electricity in the country; the other 26% comes from non-state generators and cooperatives.

Their caps and participation will be discussed in the national dialogue.

Read more: 'La Nación'

ARESEP approves reduction in electricity rates

Applies to all energy distributors in the country

Members of the 'Compañía Nacional de Fuerza y Lyuz'  have stronger reduction

September 23,2013

The Regulatory Authority for Public Services (Aresep) approved a reduction in electricity rates for all dealers ranging between 7.23% and 19.48%.

In the case of the Costa Rican Electricity Institute (ICE) was approved reduction of 13.6%.

The reduction will take effect on October 1 and will run until December 31.

The adjustment reflects the application of the methodology for calculating the "Fuel Variable Cost" where you consider the expense of fuel consumption for thermal generation plants ICE.

This methodology includes the effects of the dry and rainy season, which, the first two quarters of the year, electricity prices are high, while in the second half down, because not so dependent on thermal generation.

Thus, the setting for families monthly consume 200 kW would be 13.6% for the ICE, 19.48% in CNFL; Jasec 14.08%, 18.42% for ESPH, 7.23 % in Coopelesca; Coopeguanacaste 15.79% in the case of the reduction Coopesantos is 9.4% and 16% Coopealfaro Ruiz.

Source:"La Nación".

Government expects to have electricity and energy public policy in March 2015

October 22nd,2014

"Historically, energy changes have occurred for two reasons. Sometimes change has been forced by the depletion of the predominant energy source. Others have been induced by the appearance of a better source of energy. "

This was explained by the energy issue academic Jeffrey Ball, in a recent article . Costa Rica joins the living situation worldwide, therefore both reasons, as a political-economic factor: rates rise, the government claimed, this promises action.

Stocks started slow, after campaigning Luis Guillermo Solis promised lower rates "and" .

Once in power realized that the rate would not be selected and announced a national dialogue on the energy grid , which will define the way forward for the coming decades, as well as actions that ultimately achieve lower rates. This began Tuesday .

The end result will be a public policy matter, indicating specific guidelines, to which should be directed to public entities such as the Costa Rican Electricity Institute (ICE) and the Regulatory Authority for Public Services (ARESEP) as well as possibilities for private sector.

Environment Minister Edgar Gutierrez was satisfied with the progress of the dialogue, but was delayed and although the official himself had admitted that did not guarantee a reduction in prices . Already had forums in the north, south and contacts with Members.

The chief said he will talk at the table, known reviews and information which will be the "raw material" for the Energy Sector, which will define the policy in March 2014, but on Tuesday pushed the date to April.

Dialogue with more of 60 actors, to define a national road

While the Executive decided on a national dialogue, Members Otto Guevara and business cried and criticized the lack of action . Among these options is the stress and pass bills like Electric Contingency Plan, which proposes to expand the possibilities of the private sector for hydropower generation.

But Gutierrez insists that first question is whether the country wants to promote private investment in hydropower and not elsewhere.

According to the Minister, and have 67 players on the table, as environmentalists, business chambers, associations generators Indians. The difference in the faces generate differences, but this does not worry the authorities.

Read more: 'crhoy.com'

ARESEP proposes minimize the electric rates

September 10,2013

The Regulatory Authority for Public Services (Aresep) public consultation yesterday sent a reduction in electricity services from different providers that service in the country.

These rebates range between 5.9% and 16.6% per month.

If the reduction is approved, who will receive electricity from ICE 13.7% a reduction in your bill. Customers of National Power and Light (CNFL) pay 16.6% less.

In addition, the Electrical Services Administration Board of Carthage (Jasec) should charge 14.3% less, the Public Service Company of Heredia (ESPH) Coopelesca 15.6% and 5.9% less.

Meanwhile, 13.3% charge CoopeGuanacaste least Coopesantos Coopealfaroruiz 9.2% and 13.22% less.

How much money does this mean? For example, a family that consumes 200 kilowatts per month and now pay between ¢ 14,200 and ¢ 17,600 per month, these recesses mean a relief pocket between ¢ 1,200 and ¢ 2,600 under the bill.

If approved these new rates would come into effect on 1. ° October ARESEP reported.

The reasons. This rebate request must be the quarterly adjustment in rates of electricity generation.

This adjustment is based on a formula called Methodology Variable Fuel Cost.

This formula recognizes expenses on purchase of oil required for power generation in the country.

In the first months of the year, the country invested in the purchase of fuel for electricity generation ¢ 62.367 million. That represented almost double what was projected by the Regulatory Authority of Public Services (Aresep) for that semester: ¢ 35.641 million. At that time, thermal generation increased by 51%.

Now ARESEP believes that this time of year is not necessary fuel generation because the rainy season enters its most intense months, then applies a proposed rebate.

The ARESEP receive positions and views on the subject until 17 September. Subsequently, analyze to see if any change comes in the proposal.

Source:"La Nación".