Lack of defined rates prevents the new operators from connecting with ICE’s network.
Costa Rica: New Obstacles for Telecomm Opening
Lack of defined rates prevents the new operators from connecting with ICE’s network.
Some private companies interested in providing telecomm services have been authorized by the Telecomm Superintendence (SUTEL) 8 months ago, but cannot operate because they need to be connected to ICE’s network (Costa Rica’s state-owned Electricity Institute). This cannot be done because the price to be charged to companies for this has not yet been defined.
The Telecommunications Superintendence established maximum rates for telecomm services.
Applicable services include Internet connectivity, IP telephony, text messaging and others. The Superintendence only established the maximum possible rates, companies can lower them.
From Nacion.com: “The maximum rates for the new service providers will be the ones currently used by ICE (Instituto Costarricense de Electricidad)”.
President Mauricio Funes announced he will not sanction the decree which eliminates the basic fee for fixed telephony.
Once the decree falls in his hands, the president may constitutionally sanction it, observe it or veto it. To lift the veto, the Assembly needs to vote so by qualified majority.
Funes had referred to the Assembly as "irresponsible" for approving such decree.
The cost of non-subsided electricity will increase 15% on February 1st.
Carlos Meany, minister of Energy, explained that the increase will only affect users who consume more than 300 kilowatts a month.
"The increase is in response to lower hydroelectric generation, caused by a shortage of rain, and increases in the price of petroleum", reported Prensalibre.com.
After this week's increases, fuel prices will reach their highest levels of 2009.
Special and regular gas will increase $0.09, whilst diesel $0.08.
Julio Villagran, executive director at ASDPP, the Salvadoran Association of Petrol Distributors, told Laprensagrafica.com that "... this increase will further deteriorate Salvadorans purchasing power. This is evidenced by gas station sales, which dropped 10% since June".
Non residential consuming more than 6 cubic meters will pay between 100% and 245% more, depending on water volume.
Those who consume less than 6 cubic meters of water per month will continue paying the minimum rate of $3.76 and $0.10 for sewer usage.
These increases will came into effect on December.
"Big consumers, those using between 21 and 31 cubic meters per month, will be the most affected, as their bills will increase 245%", reported Elsalvador.com.
Electric power fees will be reduced between 10% and 12% starting October 12th.
The exact reduction will be known by the end of the month, after the fee adjustment process for April-September 2009.
This was reported by the Electricity and Telecommunications Superintendence (Siget), and electric power company AES, who added that "these adjustments are done every six months, on April 12 and October 12 of each year".
A 10% reduction for business and residential fees will come into effect in the next weeks.
The announcement was made by president Ricardo Martinelli, at a meeting with the Union of Industry.
From newspaper La Estrella: "In the meeting, Martinelli informed them that the reduction was achieved after reaching a consensus with energy generation, transmission and distribution companies.
A Guatemalan court held that EEGSA electricity company was right in its claim, which would raise the cost of a kilowatt from $0.16 to $0.25.
If this ruling is confirmed in superior courts, the increased cost of production would be inaccessible for many businesses.
Carlos Colom Bickford, president of the CNEE, told Elperiodico.com.gt: "We are extremely surprised and troubled by the decision in favor of EEGSA, but we filed an appeal before the Constitutional Court to correct the resolution."
With the elimination of the subsidy, starting May, the electric bill for the private sector will increase 14%.
Irene Brave in her article in Laprensagrafica.com writes: "The government negotiated the elimination of the subsidy for the private sector last year, and the National Association of Private Enterprises (ANEP) proposed to do it in a gradual manner to avoid an abrupt impact on the costs of business and, therefore, in the prices of products. Thus, it was determined to eliminate 40% of the subsidy in August of 2008. A second phase of the implementation will be carried out next May 12th, with an adjustment of 30%, and, finally, on October 12th, 2009, the remainder 30% of the subsidy will be removed."
The new rates plan came into effect on February 1, the ENEE manager, Rixi Moncada, reported.
La Tribuna.hn reports: "...there will some slight reductions in the rates, which will be between 5 and 12% depending on consumption; these will be applied starting February.
"Some consumers will see reductions of between 8 and 12% and in some cases, up to 16%"."
The government added a reduction in telephone rates and an increase in the bandwidth of internet connections to the measures for dealing with the crisis.
The measure for the expansion of the internet connection bandwidth seeks to increase the competitiveness of micro, small and medium businesses in order to face the global crisis.
The article on Mipunto.com says that "the expansion of the bandwidth will benefit micro, small and medium businesses, as it "will allow them to improve their competitiveness," Arias said at a joint press conference with Pedro Pablo Quiros, president of the state-owned Costa Rica Institute of Electricity, which is in charge of telecommunications."