Costa Rica Electricity Price Hike Gets Official Approval
Electricity Bills in Costa Rica Set to Increase up to 41%
The Costa Rican Electricity Institute (ICE) and Public Services Regulation Authority (Aresep) officially announced that the foretold electricity price hike in the country has been approved at a scaled rate ranging from 11% to 41%, depending on the consumption of each user. While this is much lower than the 75% increase that was requested by ICE, it could have many negative effects on the consumer.
About 60% of ICE clients, who consume less than 200 kilowatts hours monthly, will pay the minimum increase of 11%, which totals around $2 extra per month for the average electricity bill of $20. Another 25% who use between 200 and 300 kilowatt hours monthly will have a 25% increase in their monthly bill. Finally the 15% of clients that use more than 300 kilowatt hours will pay the 41% increase. Electricity bills in this upper spectrum that average around $62 per month at the moment could increase to almost $90 per month.
Industrial Sector
Previous speculations of a 75% price increase caused uproar throughout the country, especially the production sector, which claims that the increased prices will cause the country to be less competitive on an international level. Taking this into account, Aresep approved a flat 22% price increase for businesses and factories.
The industrial sector uses one third of all the energy consumed in the country, and accounts for 76% of exports and 22% of national production. Electricity currently makes up an average 20% of the costs of production for such companies, according to a Trimester Business Poll that was taken in January. To cover the additional costs, the price for goods and services will likely go up in the country, making the consumer the true victim.
Union representatives lay blame on the government’s poor planning when constructing renewable energy plants, leaving them with the only option of using fossil fuels and other more expensive energy sources to keep the country running. The increased price to the consumer will be dedicated to operation expenses, new projects and leftover debts owed by ICE.
The new tariffs will become law when they are published in the Government newspaper La Gaceta in the middle of this month.
| Written by Claire Saylor |  |
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Filed under: Costa Rica News on April 8th, 2008
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Unfortunately, what I’d like to know is the cost per kilowatt hour, which is the basic rate upon which electric costs are computed and compared with other locations. You neglect to mention this anywhere.