The Solis administration is opposed to the Power Contingency Act which would enable private power generation and force the state run power company to compete.
Arguing that there is no need for it because 'demand is being met," the executive branch is opposing the Contingency Power Act because" ... it would be contrary to the model of energy development in the country, contrary to what has been discussed in the discussion tables on energy."
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.
President Chinchilla has called on Congress to deal with the project for a law deemed essential by the industrial sector.
From a press release by the Chamber of Industries of Costa Rica (ICRC):
The Chamber of Industries of Costa Rica, welcomes the decision by the Government of the Republic, to convene the Electricity Contingency Act.
Industrialists reaffirmed that such a contingency exists, not because the country is suffering from blackouts, but because the energy that is needed is produced by diesel or bunker fuel and this is strongly affecting electricity rates.
Both the Costa Rican Union of Chambers and the Presidency have said that Congress should fasttrack the approval of the Electricity Contingency Act.
According to the Minister of the Presidency, Carlos Ricardo Benavides, this project is a priority of the Government and it is hoped that it will be adopted before the end of the year, despite its opposition by various sectors.
Businessmen are calling on the Congress of Costa Rica to urgently approve the Electrical Contingency law in order to curb rising electricity rates.
From a press release issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
The Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) is urging MPs to approve the Contingency Electric initiative , recently delegated by Victor Emilio Granados, president of the Congress Committee for Agriculture Affairs and Natural Resources of the Legislature, so that there will be more entities generating renewable and low cost electricity.
As legislative deadlines came and went, seven bills proposing updates to the electricity sector’s regulatory framework were shelved.
Plans to reform the electricity system have been postponed indefinitely following the expiry of the mandate of the Costa Rican Legislative Assembly’s special committee, whose members stopped convening last November, reported Elfinancierocr.com.
An editorial in Nacion.com describes the limitation imposed by the law on the investment of private capital in electricity generation as "a cap on development" .
Private companies are not allowed to build plants of over 50 MW of capacity. When an investment is made with a view to exploiting the plant for its entire lifetime, without a transfer to state power company ICE, the limit drops to 20 MW.
The business sector is pressing for a law that allows for the concession of water to private firms to build hydroelectric dams to be approved.
The Costa Rican Union of Chambers and Association of Private Companies (UCCAEP) stated in a release that it is necessary for "private companies to be able to start meeting the energy needs of the country, thereby avoiding rationing and huge increases" in electricity rates.