Costa Rica regulatory agency approves reduction in electricity rates

Costa Rica’s rainy season finally has brought some good news for Ticos as electricity rates are set to decrease on Oct. 1, thanks to intense rains that have helped replenish water reserves.

The Public Services Regulatory Authority (ARESEP) approved price reductions ranging from 7.2-19.4 percent for the last quarter of 2013.

The decrease was calculated using a Variable Fuel Cost formula that takes into account the projected cost of fuel used for electricity generation at thermal power plants owned by the Costa Rican Electricity Institute, or ICE.

The most intense months of the rainy season, September to October, have helped replenish water reserves that are used in hydroelectric power generation. ARESEP proposed the rate decrease earlier this month.

The new rates will apply through Dec. 31, when the regulatory agency will again evaluate electricity generation costs to set new rates for the following three months.

In the first few months of this year, Costa Rica spent ₡62 billion ($125 million) on oil for thermal electricity generation. That figure nearly doubled ARESEP’s initial projections for that period, which were forecast at ₡36 billion ($71 million).

Discounts are as follows:

ICE: -13,64%

CNFL: -19,48%

JASEC: -14,08%

ESPH: -18,42%

COOPELESCA: -7,23%

COOPEGUANACASTE: -15,79%

COOPESANTOS: -9,41%

COOPEALFARO RUIZ: -16%