Energy Costs in Nicaragua

The Nicaraguan government is studying the establishment of new fees that include an increase in generation costs and the amount of subsidies to be applied.

Tuesday, November 29, 2011

The high price of oil and other factors have increased the average cost of electricity generation in Nicaragua by 51%, of which only 7% has been passed on to the consumer with the remaining 44% being assumed by grants implemented by the government using ALBA funds.

An article in Elnuevodiario.com.ni reports that "the economist Adolfo Acevedo revealed that the energy consumed by residential users has become 51% more expensive this year. He goes on to report that prices for commercial consumption have increased by 50.2%, for the industrial sector 48.2%, irrigation 43.9% and pumping 51.5%. "

In October last year, the average cost of a megawatt was $141.89 on the regulated market. In October this year, the average cost of a megawatt shot up to $206.89 on the regulated market.

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More on this topic

Nicaragua: A New Rise in the Electricity Price

June 2019

Since June 1, there has been a 3% increase in the average selling price to the final consumer in the country, going from the cost per megawatt of $219.8 reported in March to $226.5 from this month.

The increase was officialized in La Gaceta on June 18 and the new price per megawatt is applied to each tier that makes up the tariff sheet, which includes residential, commercial, industrial and irrigation tariffs.

Nicaragua: Electricity Price Up 3%

January 2019

The new price sheet that has been in force since January establishes that consumers with residential, commercial or industrial tariffs will pay 3.28% more than in 2018.

Arguing that generation and distribution prices increased because of the "behavior of fuel prices," along with inflation reported by the local economy, the Nicaraguan Energy Institute (INE) decided to increase the electricity price.

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.

Nicaragua: Clean Energy Maintains Stable Electricity Rates

November 2011

The production of wind energy and hydropower have kept the average cost of energy generation under $170.

Energy production does not seem to have been impacted by increasing oil prices.

"According to the National Charge Dispatch (CNDC in Spanish), starting this month there will be an increase in wind energy production, directly benefitting the national electricity market, as it averages a cost of just $167 per megawatt produced.

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