Regulatory agency drops electricity rates for all distributors in Costa Rica

September 29, 2014

A day after it approved rate hikes last week for the Costa Rican Electricity Institute, or ICE, the Public Services Regulatory Authority (ARESEP) on Friday approved a decrease in electricity rates for all of the country’s electricity distributors. That change will take effect on Oct. 1.

The rate change is a result of a formula ARESEP uses called the Variable Cost of Fuels. That variable takes into consideration the cost of oil purchases needed for thermal generation, and it applies to all electricity distributors in the country.

Calculations for the last quarter resulted in rate decreases by up to 6.8 percent, depending on the distributor, and followed increased rainfall that helped replenish water reserves for hydroelectric power generation.

National Power and Light Company (CNFL) customers will see the biggest rate cut at 6.8 percent. ICE customers will receive a 3.5 percent rate cut, following ARESEP’s approval last Thursday of a 3.7 percent increase for the next quarter to subsidize electricity importation. Customers of Heredia’s Public Service Company will see a 5.51 percent rate decrease, and rates from the Administrative Electricity Service of Cartago will drop by 6.51 percent.

Last Friday, ARESEP officials said in a press release that they are concerned about “ongoing increases in electricity rates in recent years.” The agency said it had begun to take steps to better control rates hikes. ARESEP said it would seek to import more electricity “to replace inefficient thermal generation, whose marginal costs are higher than those of imported energy.” ARESEP also said it hoped to boost electricity exports to generate more revenue.

RecommendedDelays, excuses and gripes mark approaching deadline for distributed electricity generation in Costa Rica

You may be interested

Threats against independent journalists in Nicaragua continue
Daniel Ortega
386 views
Daniel Ortega
386 views

Threats against independent journalists in Nicaragua continue

La Prensa / Elizabeth Romero - August 16, 2018

Juan Carlos Arce, a lawyer for the Nicaraguan Center for Human Rights, (CENIDH), says social media sites are the most…

Drones fly to rescue of Amazon wildlife
Amazon
462 views
Amazon
462 views

Drones fly to rescue of Amazon wildlife

AFP / Mauro Pimentel - August 16, 2018

MAMIRAUÁ RESERVE, Brazil—A hoarse sound abruptly wakes visitors staying at a floating house that serves as a base for environmentalists…

Fleeing violence, Nicaraguans seek safety in Costa Rica
Nicaragua
601 views
Nicaragua
601 views

Fleeing violence, Nicaraguans seek safety in Costa Rica

UNHCR / Alexander Villegas - August 15, 2018

The thin, bespectacled medical student acted as a paramedic in street protests in Nicaragua until gun-toting paramilitaries detained him last…