Costa Rica's Public Services Regulatory Authority (ARESEP) approved this week increases in residential electricity rates ranging from an average of 11% to 41%, depending on the level of consumption.

Fernando Herrero, the regulator general, cited in an ARESEP statement an increased demand for electricity, a recent reduction in hydroelectric generation capacity and the rapid rise of petroleum prices among the reasons for the higher rate of increase this year.

Users who consume 200 kilowatt-hours of electricity a month will see an average increase of 11% in their bills. Those who use between 200 and 300 kwh will have a 14% increase, and consumers of more than 300 kwh per month will see a 41% increase.

Rates for factories will rise 22%.

“There is no more cheap electricity,” Herrero said. “We all have a responsibility in our electricity use. Those who use more should pay more. Energy is a commodity that costs us a lot.”

According to the statement, the Costa Rican Electricity Institute (ICE) requested the equivalent of a 74% increase in rates to absorb all costs incurred in 2008. However, ARESEP concluded that with an increase of 30%, ICE can cope with their financial obligations without risk to short-term financial sustainability.

The new rates will go into effect in mid-April, after their publication in the official government daily La Gaceta.