Industrialists are opposed to the 26% increase approved for the province of Cartago, one of the most important industrial areas and up until now the one with the lowest electricity rates.
The Chamber of Industry states that the increase will affect the competitiveness of companies operating in the area, where manufacturing and industrial production companies predominate.
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.
Industrialists have opposed the rate increase requested by the state power company describing it as inconsistent with the recent announcement by the government to maintain a flat fee for 18 months.
From a press release issued by the Chamber of Industries of Costa Rica (ICRC):
Industrialists ask ARESEP to reject the rate increase requested by ICE
The subsidy for residential rates and the pricing scheme used by the government generates high electricity costs for the industrial sector.
The price of energy in El Salvador remains one of the highest in the region, especially for the industrial and commercial sector. The subsidy for the residential rate and the pricing scheme used by the Government cause the cost of electricity to be high, taking away competitivity from both sectors.
The price paid by Costa Rican industry for electricity consumption is 41% higher than in the European Union and 259% higher than in the U.S.
Industry has expressed its anger against the rising cost of electricity as it is making production more expensive and exports are becoming less competitive against rival markets where energy is cheaper.
Guatemalan exporters are concerned about the high cost of energy making them less competitive in international markets.
Guatemalan exporters are to create an integrated electricity observation committee for private sector users in order to improve competitiveness with other countries. The executive director of the Guatemalan Association of Exporters (Agexport), Fanny D.
The National Authority of Public Services in Panama doubled the anticipated increase in the cost of electricity for industrial uses.
The price of electricity in the industrial sector in Panama increased 21% for the first half of 2013.
This increase doubled the rate established by the National Authority of Public Services (ASEP), on June 26, 2012 for the first six months of this year.
The Chamber of Industry opposed a rate increase by the Instituto Costarricense de Electricidad, citing lack of control in the state run company's expenditures.
A statement from the Chamber of Industries of Costa Rica (ICRC) reads:
Industrialists have opposed rate increase requested by ICE for 2013
• Requests have been made to ARESEP to review and correct estimates of demand in order not to artificially affect tariffs for consumers.
Salvadoran industrialists resent the high value of electricity bills, the second most important factor in the cost structure.
Ricardo Moran, president of the Salvadoran Association of the Plastics Industry (ASIPLASTIC) noted that currently the cost of energy represents between 18% and 20% of the final product cost. "It is not possible (to transfer the cost of energy onto the product).
The rate of non social energy from the EEGSA has increased by 22% since February, affecting mainly small and medium enterprises.
The increases in prices charged by Empresa Electrica de Guatemala SA (EEGSA) affect around 103,947 users in the Midwest, which accounts for the bulk of industrial production.
Local business resent the loss of competiveness caused by the increases, especially in the manufacturing of food and beverages, textiles and plastics.
The Salvadoran Industrial Association urges the Government to implement energy saving measures and the efficient use of energy.
According to ASI, the energy issue is of vital importance for the industrial sector in view that electricity is one of the highest costs of any industry.
We cannot be competitive in a country where electricity is expensive for industries which compete with other sectors where countries subsidize their energy and therefore production costs are lower.
Food industry businessmen warned that their production costs will be increased by the upcoming 9.9% hike in energy prices.
Roberto Herrarte, head of Grefal, the union of Food Producers, explained that energy is an important component in their overall cost structure, sometimes as much as 15%.
The textile industry is also a heavy user of energy. It accounts for 70% of the costs of yarn makers, 10% at maquilas and 40% at fabric producers.
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