The state-run National Power and Light Company (CNFL by its initials in Spanish) has requested an increase of 26% for the second half of this year and another 14% next year.
Arguing that the non-approval of increases would jeopardize the implementation of the investment plan and commercialization of energy, Compania Nacional de Fuerza y Luz (CNFL) asked ARESEP for two upward adjustments, one for the second half of this and the other for next year, 2018.
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.
Either the state run power company is trying to make excessively high charges or the tariff regulator is seriously wrong: in any case the loser is the country.
EDITORIAL
When establishing electricity rates, differences between the state run electricity monopoly and the controlling entity for public services, are of a staggering magnitude.
Average prices for buying and selling on the spot market, quantities by contract and by spot price, amounts of predispatched MWh per hour, per day or for specific periods.
The regulator, Energía de la Autoridad Reguladora de los Servicios Públicos de Costa Rica (ARESEP), has published a comprehensive online information system for the Costa Rican electricity market, with a section dedicated to the Regional Electricity Market.
To not regularize what is badly regularized you need a deregulator to regulate by deregulating what is well regulated.
EDITORIAL
The new head of the Regulatory Authority of Public Services of Costa Rica (ARESEP) took office while subject to a serious challenge over an obvious conflict of interestthat arose from his status as an active employee of the Instituto Costarricense de Electricidad (ICE), the monopolistic state entity whose rates must be fixed by the very same ARESEP. The insistence of the Solis administration eventually led to his appointment as Controller General, and after an announced pause for reflection, the new chief resigned from the ICE, promising that his actions would be solely taken with the welfare of consumer services in mind, services which are regulated by the ARESEP.
Of the 28 requests for permits to generate electricity for self consumption submitted to the regulatory body, 27 correspond to generation using solar sources.
Sixteen out of the twenty eight applications submitted to the Regulatory Authority for Public Services (Aresep) were from the state run Compania Nacional de Fuerza y Luz, "... for a total requested power of 112.84 kW, all using solar power."
The stubbornness of the Solis administration to award a highly technical job to a candidate rejected by employers confirms the importance that this specific person would have in the formulation of public tariffs.
Editor's note:
This review was written hours before the now newly appointed General Regulator of Costa Rica gave notice of his resignation from his position at the Instituto Costarricense de Electricidad (ICE).
To fulfill the position of General Comptroller of the Republic the government proposes an official who has worked for more than 20 years in a senior position in the state electricity company.
The Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP), has criticized the appointment of Mr. Roberto Jimenez Gomez, who has been a member of staff at the Costa Rican Electricity Institute (ICE) for more than 20 years, as a candidate put forward by the Governing Council for the position of Controller General of the Republic.
Conditions have been established the for access and interconnection by producer-consumers to the grid and the methodology used to set tariffs for use of the network.
The Energy Regulator confirmed that the proposed fees for the use of the network will be made public on 17 March, so that the ARESEP can comply on time with tasks under its responsibility, the deadline for which is 7 April.
With the new regulations for distributed self-generation and the methodology for calculating the rate, planned for April, it is anticipated that more business will be done related to the manufacture and sale of solar panels.
Entrepreneurs in the sector foresee new sales and investments this year, mainly from April, when the new methodology comes into force for calculating tariffs "...
Concern over the serious impact on the productive sector of a 72% increase in gas prices has faded, while accusations of inefficiency and a monopolistic state oil company still persist.
Although the ARESEP is expecting to submit to a public hearing the new pricing methodology which would eliminate the subsidy from the cost of Liquefied Petroleum Gas (LPG), asphalt and bunker fuel, and increase the cost of a 25 pound cylinder from ¢ 6,410 to ¢8,470, the Government of the Republic has decreed a new sector policy for prices, in order to avoid the increases proposed by the regulator.
The union of large energy consumers has voiced its opposition to the 25% increase which the state run electricity company,CNFL, intends to apply on rates.
Two months after unsuccessfully requesting an increase of 36% from the Services Regulatory Authority, the National Power and Light Company (CNFL by its initials in Spanish) has not given up and has again started the application process, this time to raise fares by 25%.
A bill removes technical independence from the Regulatory Authority for Public Services and compels the entity to be subject to "guidelines and policies of the Executive Branch."
From a statement issued by the Chamber of Industries of Costa Rica:
The Chamber of Industries of Costa Rica is warning of the dangers on the proposal to amend the ARESEP Act.
The Instituto Costarricense de Electricidad will have to sell surplus power generated in 2015 and 2016 in the regional electricity market as a way of "transfering the benefits" to domestic rates.
From a statement issued by the Regulatory Authority for Public Services (Aresep):
The Mayor of Energy, Juan Manuel Quesada said that "during the years 2015 and 2016 it is likely that a surplus of electricity will be generated, which is why the Instituto Costarricense de Electricidad (ICE) must be ready to continue seizing the opportunities provided in the Regional Electricity Market ".