Conceptual Opening Up of Electricity Market in Costa Rica

The Public Utilities Regulatory Authority has authorized energy companies who operate in the same area, to compete with each other for new customers.

Friday, November 15, 2013

The Board of the Public Utilities Regulatory Authority (ARESEP) "... put an end to a conflict between Empresa de Servicios Públicos de Heredia (ESPH) and Compañía Nacional de Fuerza y Luz (CNFL) over the development of the real estate project Centro Corporativo Belén" , reported Nacion.com.

This investment will require the supply of 7 MW which will earn the electricity operator about $400,000 a month. CNFL earlier asked ARESEP for its competitor not provide the service, for fear of losing their large customers in that area.

However, the resolution of the regulatory body states that "there could be competition between ESPH and CNFL, when the first entity starts operating (subject to compliance with legal requirements) in an area where the CNFL is already operating and in which case Users can choose their operator ".

"We will be respectful of the resolution. There was in fact a gentleman's agreement between myself and Mr. Allan Benavides, manager of ESPH," said the commercial director of the CNFL, Guillermo Mena.

"If a manufacturer can choose if they want to connect with one company or another because of geography, there is no reason to limit it. If, in addition, there is a compelling reason, such as one enterprise having a better rate and higher efficiency, then all the more so," said Carlos Montenegro, deputy director of the Chamber of Industries of Costa Rica (ICRC).

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