Electricity Costs Affecting Competitiveness

In Costa Rica, electricity rates have doubled in the last four years, and now industrial electricity is cheaper in the U.S. and Europe.

Wednesday, November 16, 2011

Costa Rica’s Chamber of Industries (CICR in Spanish) is asking the Public Services Regulatory Authority (ARESEP in Spanish) to rationalize the 22.75% increase in electricity rates imposed by the Instituto Costarricense de Electricidad (ICE).

• Electricity costs is the most significant factor for losing competitiveness in most industries.

• Data presented by ICE shows that 227 industrial SME customers were lost in 2011.

This afternoon, the CICR submitted to ARESEP 11 petitions concerning the increases requested by ICE relating to systems for the generation, transmission and distribution of electricity.

"Over the past four years electricity rates have doubled and lamentably the country has lost its advantage compared with competing countries. Technical analysis shows that industrial electricity is cheaper in the U.S. and Europe, regions with which we have signed free trade agreements. Even in the intervals of high industrial consumption El Salvador and Panama have been able to maintain lower rates than Costa Rica in 2011", said Marco Meneses, President of the CICR.

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Costa Rica: Another Increase in Electricity Tariffs

March 2017

The industrial union is opposed to the 13% increase in generation and 8% for customers of the state run electricity company, ICE, which will apply from April 1.

"... The Regulatory Authority for Public Services (Aresep) has revoked a 6.7% reduction in electricity rates paid by subscribers of the Costa Rican Electricity Institute (ICE). Instead, the rate will increase 8% from April 1," reported Nacion.com.

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Industrialists have opposed the rate increase requested by the state power company describing it as inconsistent with the recent announcement by the government to maintain a flat fee for 18 months.

From a press release issued by the Chamber of Industries of Costa Rica (ICRC):

Costa Rica: Industry Complains about Electricity Rates

December 2012

The Chamber of Industry opposed a rate increase by the Instituto Costarricense de Electricidad, citing lack of control in the state run company's expenditures.

A statement from the Chamber of Industries of Costa Rica (ICRC) reads:

Industrialists have opposed rate increase requested by ICE for 2013

Industry Impact of Rising Electricity Rates

August 2012

In Costa Rica the last three adjustments add up to more than 11%, which is well above the 4% inflation announced by the Central Bank.

A statement from the Chamber of Industries of Costa Rica reads:

Increased electricity rates well above inflation

• Three increases have been declared so far this year.

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