Industrialists in Costa Rica are opposed to the appeal lodged by deputies against the presidential decree that prevented the rise of 72% in the price of LP gas and 35% in bunker fuel.
From a statement issued by the Chamber of Industries of Costa Rica:
The Chamber of Industries of Costa Rica said that nullifying the presidential decree on Sector Policy, as several Deputies want to do, will affect employment.Last week, deputy Luis Alberto Vasquez Castro and other lawmakers presented an appeal to the Constitutional Court against the decree by President Luis Guillermo Solis of January, a decree that prevented the ARESEP from changing the methodology of fuel prices.This presidential decree, put an end to the disproportionate increase in the price of Liquefied Petroleum Gas (LPG), 72%, and bunker fuel, 35%, which are key materials for the industrial sector.
The plan is to implement longer terms in contracts and release energy and power demand from large customers.
The Energy Plan 2015-2020 presented by the National Secretariat of Energy in Panama is broken down into two main parts: first, the Short-Term Operational Plan 2015-2019, where proposals for the period are detailed, and second, the National energy Scenarios Plan 2015-2020, including projections of fuel prices and other energy sources and demand estimates, expected changes in the energy matrix and the future role of private companies in the energy system.
After lowering the country's sovereign debt rating, the ratings agency also lowered the rating for the electricity company, anticipating difficulties in collecting payments from the Salvadoran government subsidies.
From the press release by Fitch Ratings:
Fitch Ratings-Monterrey-14 July 2015: Fitch Ratings has downgraded AES El Salvador Trust II's (AES El Salvador) foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB' and revised the Rating Outlook to Stable from Negative. In addition, Fitch has downgraded the company's USD310 million senior unsecured notes due 2023 to 'B+/RR4' from 'BB'.
From July 1st the Energy Compensation Fund will be eliminated and users who demand the most power will pay actual market rates.
From a statement issued by the National Authority for Public Services (ASEP):
Electricity rates corresponding to the second half of 2015 will not be raised, according to the Authority of Public Services (ASEP), the entity that performs a calculation every six months to establish the tariff schemes to be applied in Panama, once the companies EDEMET, EDECHI and ENSA publish their tariff schedules.
An announcement has been made that solar energy projects that negotiated contracts with the state run power company and begin operating before July 31 will receive an incentive of $0.03 per KW / h.
For renewable energy the price is, according to the National Energy Company (ENEE) is $11.4 KW / h, marginal cost, added to which is the 10% incentive and now on top of this would be added the additional $0.03 for generators operating during the next three months. In total for these companies the price KW / h would be at $15.54.
The private sector will be asking the government to implement a differentiated rate for electricity companies in order to avoid losing competitiveness against the rest of the region.
In light of the governments refusal to reduce electricity rates, the private sector has proposed the creation of a lower differentiated rate for users who consume more than 150 Kw / h per month, which are mostly companies.
The business association of Chiriquí has asked for an adjustment in the prices of electricity, considering that this province and Bocas del Toro generate 60% of the energy produced in the country.
From a statement issued by the Chamber of Commerce, Industry and Agriculture of Chiriqui (CAMCHI):
The meeting on the rise in electricityprices realized held with Roberto Meana, director general of the Authority for Public Services (ASEP), along with representatives from the various productive sectors at the Chamber of Commerce, Industries and Agriculture of Chiriqui (CAMCHI ), the governor of the province of Chiriqui, Hugo Mendez and representatives of the Board of the Hospital Materno Infantil Jose Domingo De Obaldia, developed an extensive debate which brought up interesting proposals to mitigate the impact of rising energy costs in the region, taking into account that between Chiriqui and Bocas del Toro 60% of the country's electricity is produced.
Electricity distribution companies will receive about $300 million less in state subsidies leading them to foresee an increase in rates which will affect the productive sector.
The State will compensate only the Chiriqui electricity distribution company (Edechi) with $27 million and the electricity distribution company Metro-West (Edemet) with $38 million, ceasing to give subsidies to the company Ensa.
The productive sector has indicated that the savings generated by the reduction in the price of oil should be applied to energy tariffs.
Although this proposal is gaining strength in the context of falling oil prices, the private sector and had actually raised the idea last year. It is expected that later this month it will be once again taken to the Bureau of Energy Sector in order to cover the $ 202 million in debt generated from loans for the subsidy, and to conduct a review of the electricity tariff.
The formulas that determine the prices of products sold by the monopoly which is the state run oil company contain factors that create subsidies for gas and asphalt consumers at the expense of gasoline and diesel consumers.
An article published in Nacion.com reports on the results of an investigation into the calculation of consumer prices of automotive fuel, which states that since August 2008 changes have been put into effect to the formulas determined by the Regulatory Authority for Public Services (ARESEP), harming "... consumers of diesel and gasoline, who pay more per liter than the asphalt companies and gas users who save millions from the lower prices."
The Ministry of Environment in Costa Rica is considering raising the ceiling on the amount of energy private generators are allowed to produce above the current 15%, but these companies are demanding the elimination of the ceiling and free competition.
Private power generation companies are opposed to pricing and limits that are imposed on the participation and sale of power in the country, and consider it a "discriminatory act".
Photovoltaic projects will have a special incentive of three cents per kilowatt-hour (kWh), which is on top of the 10% established by the Law on the Promotion of Electricity Generation using Renewable Resources.
Elheraldo.hn reports that "... The diversification of the energy matrix is not any way to get out of the financial crisis for the National Electric Power Company. The cost per kWh of new contracted projects in 2014 will be more expensive than power generated using bunker fuel. An example of this is that the cost per kilowatt hour of solar plants ranges from between 16.50 and 17.50 cents per kWh, higher than the 15 cents paid by 410 megawatts plants approved in 2003 "
The Energy Department has announced that it will revise regulations on the market and energy contracts in order to make it more competitive and attract more investment to the sector.
Generating the conditions in the electricity market to encourage more private companies to invest is the aim of the Energy Department, whose chief, Victor Urrutia, said that "... current investments in power generation are insufficient to meet the growth in demand which is expected in the next few years. "
Production, transport & commercialization of alternative electrical energy. Consuling, advising & development of energy projects. Water & soil treatment sanitation & treatment. Air emission control.
Operates in Guatemala
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A Dominican company dedicated to providing consulting services, preventive and predictive maintenance on electrical systems in the energy, industrial and commercial sector
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
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EuroProspect Alternative Energy is born from the need to attend to the renewable energy requirements of professionals in this area of the world. We aim to contribute to solving the problems derived from the expense, pollution and shortage of “traditional” energy sources in developing and/or remote areas of Latin America and the Caribbean.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (305) 859-9877