Water Prices May Soon Be Added to the List of Cost of Living Increases in Costa Rica.

Costa Rica’s Water and Sewer Institute (AyA) has asked the Public Services Regulating Authority (Aresep) to approve a 19% increase in the price of water for its customers. In Costa Rica, that could mean an increase of $2 per month for the average family that consumes about 22 cubic meters of water, totaling about $13/month for water.

Representatives from AyA said that the institution was not satisfied by the last increase of 16% in water prices that was authorized by Aresep in 2007 to cover increased operations costs and investing to improve its service to its 500,000 some customers. AyA had originally asked for a 35% increase, and has reiterated its call to Aresep to approve the remaining 19% increase. The AyA will be given the chance to state its case in front of the Board of Director of the Regulating Authority.

Higher than Average Prices All Over the Board

Aresep recently approved a Costa Rica electricity price hike as requested by Costa Rica’s Electricity Institute (ICE), ranging in increases of 11 to 41% depending on each household or company’s electricity consumption. The increase was said to cover the increase in prices of fossil fuel, investments, previous debts as well as a salary increase for employees of ICE.

As of last Monday, a kilo of eggs went up an extra 100 colones (almost 20 cents), making the total cost $3. Egg vendors claim that the increase was necessary to pay for the materials used to feed the hens (corn and soy), as well as the increase in gas prices necessary to deliver the eggs to the market. Rice prices are also expected to increase.

Mixed with the flip flopping dollar exchange rate, higher bus prices, a global food crisis and higher interest rates, Costa Rica’s cost of living is becoming less favorable everyday. This hits the lower spectrum of society the hardest, making daily expenses unbearable. The Costa Rican government has responded to the needs of this group specifically in their National Food Plan, which will include offering $100 a month to about 16,000 families to supplement their minimal income.

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Filed under: Living on May 15th, 2008