Electricity Rate Cuts Suspended

September 4, 2009

Eight days after the the Public Services Regulatory Authority (ARESEP) announced a decrease in nationwide electricity rates (TT, Aug. 28), the

Administrative Contention Court

ordered a suspension of the discounted rates, which were to take effect this week.

The suspension was granted in response to appeals made by the Costa Rican Electricity Institute (ICE), which was to see the prices for their electricity cut by an average of 7.4 percent. The decision was announced by the

Administrative Contention Court

Friday, Aug. 28.

According to a statement released by ARESEP, the contention court “as a provisional measure, will enact the immediate suspension of the effects of the administrative act (cutting rates).”

Representatives of ARESEP and ICE are scheduled to meet today to try to hammer out an agreement on the rates.

On Aug. 20, ARESEP announced that a nationwide decrease in electricity rates would begin on Sept. 1. The pricing agency reported that the drop in prices was justified due to a significant decrease in actual spending needed for hydrocarbons compared with ICE’s original projections.

According to ARESEP, in 2008 ICE spent ¢97.67 million ($168,400) for thermal (petroleum-based) generation of electricity.

The cost of thermal generation for 2009 is estimated to be ¢45.476 million ($78,406), which would indicate a savings of ¢52.49 million ($90,500). ARESEP said some of the savings should benefit consumers.

“Our responsibility as regulators is to assure all Costa Ricans that the prices will be adjusted up or down, depending on the movement of the costs,” Regulator General Fernando Herrero said on Aug. 20. “We are not here only to raise (rates).”

The proposed discounted rates were to be applied to all companies that provide electricity service.

–Adam Williams

 

Facebook Comments

You may be interested

The Tico Times Weekly Digest: Oct. 22, 2018
Tico Times Weekly Digest
38 views
Tico Times Weekly Digest
38 views

The Tico Times Weekly Digest: Oct. 22, 2018

Alexander Villegas - October 22, 2018

It's Monday everyone. That means it's time for another dose of The Tico Times Weekly Digest. This week's Digest is…

This week in the Peace Corps: Lessons from indigenous communities in Limón province
Changemakers
167 views
Changemakers
167 views

This week in the Peace Corps: Lessons from indigenous communities in Limón province

Crystal / Regional Peace Corps Leader - October 22, 2018

After four years with Peace Corps Costa Rica, I am reflective about living and working in indigenous communities throughout Limón…

CREAR: Enjoy, don’t destroy
Pic of the Day
515 views
Pic of the Day
515 views

CREAR: Enjoy, don’t destroy

Alissa Grosskopf - October 22, 2018

The association CREAR in Sámara, Guanacaste helps create social change by hosting art and social activities for children. They also…