• Costa Rica Real Estate
  • Costa Rica Real Estate Auction

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

What are you grateful for this year?
The Tico Times
11 views
The Tico Times
11 views

What are you grateful for this year?

The Tico Times - November 21, 2019

Costa Rica doesn't traditionally celebrate Thanksgiving. But no matter where you live, the holiday season serves as a reminder to…

TBT: An indigenous uprising in ancient Costa Rica
Throwback Thursday
3179 views
Throwback Thursday
3179 views

TBT: An indigenous uprising in ancient Costa Rica

Alejandro Zúñiga - November 21, 2019

For a unique look into Costa Rica's past, you can't do much better than the 1913 book, "History of the…

UN calls on Nicaragua to end repression after church siege draws international attention
Central America
14 views
Central America
14 views

UN calls on Nicaragua to end repression after church siege draws international attention

Blanca Morel / AFP - November 21, 2019

Opposition protesters holding a hunger strike inside Managua's Catholic Cathedral and the pro-government supporters opposing them ended a standoff Tuesday,…

Do NOT follow this link or you will be banned from the site!