HomeTopicsBusinessElectricity rates: regulator says drop 'em, utility companies say raise 'em

Electricity rates: regulator says drop ’em, utility companies say raise ’em

Electricity rates for Costa Rican consumers are likely to change next month, but whether they’ll go up or down is anybody’s guess.

The Public Services Regulatory Authority (ARESEP) is considering a general cut in electricity rates for October thanks to recent savings from lesser-than-expected dependence on the country’s expensive thermal power plants. If the cut is approved, rates for customers of the Costa Rican Electricity Institute (ICE) could drop by 3.5 percent starting next month.

However, ICE and two other public utility companies have recently filed requests to increase the rates they charge customers. In August, the National Power and Light Company requested permission to raise its rates — by up to 35.5 percent — for its 500,000 customers mostly in the San José metropolitan area.

The Administrative Electricity Service of Cartago has requested to raise rates for its customers by 26.7 percent. And last Friday, ICE filed a request to raise rates by 8.27 percent for its 700,000 customers. The agency said its operating costs had risen and that it needed to purchase electricity from private generators.

In its petition to ARESEP, ICE said it needed to generate additional revenue in order to buy â‚¡30,133 million ($55 million) in electricity from private generators and spend â‚¡14,814 million ($27.4 million) for maintenance work on its distribution lines.

ICE also said it needs to spend â‚¡20,167 million ($37.3 million) to pay off debts and expand its power generation plan for next year, including to increase service coverage across the country.

ICE’s director of Financial Planning, Francisco Garro, said Friday that in spite of the rate hike request, the public electricity company would keep the government’s promise to maintain tariffs at below ₡91 ($0.17) per kilowatt-hour for the rest of the year.

Currently, ICE’s residential customers pay ₡81 ($0.15) for the first 200 kwh and â‚¡145.48 ($0.27) for additional kilowatt-hours, according to ARESEP data.

Trending Now

How Living in Costa Rica Changed the Way I See the World

When speaking of the 1980s and 90s, I like to refer to it as the previous century. “In the previous century, we didn’t have...

What JetBlue’s Multi-Billion Dollar Debt Means for Costa Rica Flights

JetBlue creditors have hired restructuring advisers as the airline's bonds slid to 42 cents on the dollar, raising questions about its Costa Rica routes.

Weak Dollar Cuts Costa Rica Medical Tourism Revenue by Up to 15%

Costa Rica's private hospitals, clinics and medical offices are treating about as many foreign patients as they have in recent years, but they are...

Costa Rica Plans Highway Cameras and Radar Every 1.5 Kilometers on San Ramón Route

Drivers on the widened highway between San José and San Ramón would be watched by cameras and radar sensors at least every 1.5 kilometers...

Five Costa Rica Regions on Yellow Alert as Saturday Rain Hits Soaked Ground

If you live in or are traveling through the Central Valley, the Pacific coast or the Northern Zone, you are now under a yellow...

El Refugio Costa Ballena: Making a Difference for Animals and the Community

From rescuing animals in need to providing affordable spay/neuter surgeries and supporting community members’ loving pets, one local nonprofit is changing the lives of...

Costa Rica Researchers Study Pollution Exposure in Ostional Sea Turtles

Researchers are examining olive ridley sea turtles at Ostional for exposure to antibiotic-resistance genes as part of a broader investigation into marine pollution. Details...

Costa Rica Heads to Ecuador and Argentina Without Keylor Navas

Bryan Ruiz will take Costa Rica into its toughest test of the year without Keylor Navas. The veteran goalkeeper was left out of the...

Four Days of Rough Surf Ahead for Costa Rica’s Pacific Beaches

If you're planning on going to the Pacific coast this week, expect rough surf and storms every day. Waves could reach 2.7 meters (8.9...
L. Arias
L. Arias
Reporter | The Tico Times |
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel