Aresep slows increase from electricity companies that provide service in Heredia and Zarcero

Energy Municipality rejected the increases

April 16,2013.

San Jose (Editorial). Power companies that provide this service in Heredia and Zarcero may not raise rates after the Administration of Energy so decide.

Days ago the Public Service Company of Heredia (ESPH) asked the Public Utilities Regulatory Authority (Aresep) an increase of 4.29 percent in its tariffs that have been endorsed, came into effect from 1. May.

ESPH also requested 10.57 percent increase in street lighting service.

Juan Manuel Quesada, mayor of energy, said "it is our duty to ensure that users and providers of public services, which are fixed rates technically sound."

Quesada scored rigorous verification mechanism reporting by regulated firms.

The other company that was rejected was rising to Rural Electrification Cooperative Alfaro Ruiz, operating in the canton of Zarcero, who sought an increase of 12.84 percent.

Source: "La Nación".

Extra costs in fuel is charged to users

September 19th, 2014

Guests of the Costa Rican Electricity Institute (ICE) Additional paid to the state company with the recognition of extra expense for the purchase of fuel for thermal generation during the months of February, March and April this year ¢ 45,696,000.

The Regulatory Authority for Public Services (Aresep) endorsed that user fees is made by parties, following a request made by the ICE the day before the setting is adopted, on 27 July.

Thus, in the third quarter, the state-owned ¢ 24.890 million recovered in the last three months of the year will be ¢ 7.916 million. The remaining ¢ 12.890 million will be charged for the entire 2015, according to ICE's financial statements.

"ICE said the measure will not affect its financial equilibrium, and so, he vowed to take compensatory measures to restore," said Juan Manuel Quesada, mayor of Energy ARESEP.

He added that the request was accepted Institute, expeditiously, for convenience and public interest, given the evident relief that mean for users to make the payment for several months.

In February, March and April, the ICE had an expenditure of ¢ 66,956,000 in fuel, but was only recognized in rates in that period, ¢ 29,788,000.

ARESEP accepted, in its decision of last July, the difference between actual expenditure for the purchase of fuel and income (¢ 37,168,000); However, he added an additional compensation of ¢ 8.528 million for other resources to recover missing ICE.

Source: "La Nación"

Adopted rising of the electricity tariff by fuel use

From ¢1 to ¢4 per kWh

A family that has a minimum power consumption of 200 kilowatt hours (kWh) will pay between ¢ 200 and ¢ 400 more on your next monthly bill.

The Regulatory Authority for Public Services (Aresep) approved an increase to offset the cost that makes the Costa Rican Electricity Institute (ICE) to generate fuels. Will be effective upon publication in La Gaceta.

According Aresep in the case of ICE users, the first 200 kWh cost instead of 92 ¢ 89 ¢ each. For subscribers of the National Power and Light, the cost will increase from 75 ¢ to 79 ¢.

Users of the Administrative Board of Electrical Services of Carthage (JASEC) will pay for the first 200 kilowatt hours instead of ¢ 70 ¢ 67 each, while in the case of Coopelesca, which gives service to the people of San Carlos , the kilowatt hour cost 92 ¢ instead of 91 ¢.

Finally, customers will pay Coopesantos ¢ 2 more per kilowatt hour (¢ 78 to ¢ 80) and those of more CoopeAlfaroRuiz disbursed ¢ 1 (¢ 77 to ¢ 78).

Source: "La Nación".

Increase in price of dollar created financial hole at ICE

Institute says that deficit is accounting and will not affect consumers' pockets

Comptroller, Fitch and Moody's alert due high indebtedness in dollars of the Group

September 19th,2014

The rising price of the dollar had a negative result in the Costa Rican Electricity Institute (ICE) and its subsidiaries, in the first half of the year.

The state company had a net loss of ¢ 133.548 million in the period January to July, according to financial statements. It is the first time in the last five years, in which the entity has such a high deficit.

The ICE attributed the loss, exclusively, the increase in the value of its debt by the appreciation of the dollar. In the first six months of the year, the price of the currency rose by 8.6% compared to December 2013, according to estimates by the institution.

"By quantifying the balance of the debt, the new exchange rate, this difference should be reflected as an expense for the exchange rate, which affects the results," he said, in writing, Jesus Orozco, chief financial officer of ICE.

He added that the adjustment is countable and has no effect on their customers, because the debt is canceled when it expires each of the loans.

In the next four years, however, the business group will have maturities of credit denominated in the greenback, for $ 1.305 billion, according to its financial statements.

Ratings agencies Moody's, Fitch Ratings and the General Accounting Office warned the risk to the ICE for its high exposure to currency fluctuations in recent months. At 30 June before the debt of the company was ¢ 2.2 billion, of which 85% is in foreign currency.

The results of the business group include ICE, National Power and Light Company (CNFL) Radiographic Costarricense (Racsa) and Cable Vision.

The ICE had an increase in their debts, exchange rate of ¢ 144,476,000; CNFL ¢ 8.408 million; Racsa ¢ 1,774,000 and ¢ Cable Vision 72 million. In the final result, these amounts down a bit because revenues are offset by other financial.

Other factors that impacted the outcome of the institution were the expenses for investments mainly by Reventazón Hydroelectric Project, and thermal generation. In the latter case, the Regulatory Authority for Public Services (Aresep) recognized an extra set of ¢ 45,696,000 users in 15 months paid.

Alerts. Giancarlo Rubio, risk analyst at Fitch Ratings, said the high dollar debt exposes the Company to changes in the exchange rate.

"Debt ICE is based on their investments and the exchange rate does affect. But what is most striking is that it does not recognize timely tariff adjustments, "Rubio told La Nacion.

Meanwhile, Moody's explained that, for now, the currency exposure does not involve liquidity risk in the company. Although he warned that if the debt ICE Group up significantly in the coming months, they can deteriorate credit metrics.

The Comptroller said that the Institute shows, since 2010, a decline in profits and warned of the rapid growth of borrowing by the company. Obligations currently represent 47% of the assets of the ICE Group; but in 2010 it was 36%.

Source: 'La Nación'