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.
Starting from July 1 prices will rise by 5,49% for customers of the Instituto Costarricense de Electricidad, 4.45% for those of the CNFL, and 3.08% for the ESPH and 3.08% for the JASEC.
From a statement issued by the ARESEP:
Electricity rates will be adjusted due to the fact that in the last quarter reviewed more energy was produced using combustibles in order to cover an increase of 6.64% in electricity demand.This adjustment will be in effect between July and September.
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).
The regulatory authority has approved a reduction of 6.7% in average rates for distribution by the state run ICE in 2016, effective for industry as well as residential customers.
From a statement issued by ARESEP:
ARESEP approves a reduction of 6.7% in ICE´s electricity tariffs
• Discount will apply in 2016 and will benefit 739,000 subscribers.
• ¢ 88,000 million excluded from rate calculations
Companies that consume more than 1 million KWh / month in at least 10 out the 12 months of the year will be eligible to pay a rate approved by ARESEP of $0.10 for the medium voltage service.
From a statement issued by the Regulatory Authority for Public Services:
The ICE's industrial customers will have a more competitive electricity rate, as the Energy Regulator, ARESEP, has approved $0.10 for the medium voltage service (G-MTB).
The union of private companies will be launching an appeal against the approval of the 18.6% increase in electricity rates by the National Power and Light Company (CNFL by its initials in Spanish).
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
The Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) will be appealing against the rise of 18.6% approved for electricity rates provided by the National Power and Light Company (CNFL).
Industrialists have indicated a loss of competitiveness of its industry because of the cost of electricity, which in the last ten years rose from $0.07 to $0.17 per kilowatt.
The industrial union insists that a bill aimed at reforming the law of the Regulatory Authority for Public Services (Aresep) be approved in order to achieve lower electricity prices.
In Costa Rica operators in the sector indicate that there are no incentives for renewable energy generation due to excessive interconnection and access fees.
The tariff structure and rates established by the Regulatory Authority for Public Services (Aresep) caused widespread discontent for entrepreneurs with interests in solar power generation.
An article on Nacion.com explains that generators argue that the access fee is too high, and it should not even be charged at the start of the implementation of this technology, as it represents an obstacle to promotion of the activity.
Fees for interconnection to the distribution network for small-scale generators for self-consumption ranging from 8.48 C / kWh to 28.44 C / kWh.
From a statement issued by the ARESEP:
The Municipality Energy Regulatory Authority (Spanish initials:ASREP), approved on Friday the charges for access and interconnection to distribution networks, for small-scale generators to join the National Electricity System (Spanish initials: SNE).
The tariff proposal of the Public Services Authority for large-scale solar power generation establishes that plants of more than 1 MW can sell each Kw / h between $0.0751 and $0.1794.
From a statement issued by the Regulatory Authority for Public Services (ARESEP)
ARESEP proposes rates to promote solar generation
The Regulatory Authority for Public Services (ARESEP) has proposed a price band for new companies that produce electricity on a large scale using solar power (photovoltaic), up to 20 MW.
Industrialists have pointed to the fallacy of a report issued by the state power company detailing how their rates have dropped in the last year, and to which it was added that the next increase has already been scheduled for March.
From a statement issued by the Chamber of Industries of Costa Rica (ICRC):
The Chamber of Industries of Costa Rica has expressed concern about the information provided by the Instituto Costarricense de Electricidad over the weekend, about how the "Electricity rates fell by 9%" when in reality in March 2015 consumers will have to pay 12.5% more for electricity than they did a year ago or 9.8% on top of what they paid in February 2015.
A proposal has been made for the price per KW / h produced from wind and solar energy in private plants to be established according to a price band in which the maximum and minimum would be below current levels.
It is expected that in February the reform which aims to change the methodology for fixing the selling prices of solar and wind energy from private companies will be put to public consultation, with the goal of creating a more competitive range. This setting only applies to new companies since for existing ones specific prices have been established.
Employers have indicated that the increase of 13% in rates is unjustified and instead a reduction of 8% should be applied, considering variations in the exchange rate and generation capacity.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
UCCAEP believes that electricity rates should fall by 8%