The cost of electricity in Costa Rica could increase between 5.14% and 17.13% as of January 1, 2024.
The Regulatory Authority of Public Services (ARESEP) is processing a file through which it intends to charge customers the Variable Generation Cost (CVG).
The CVG is the additional expense incurred by the Costa Rican Electricity Institute (ICE) to purchase fuel and produce thermal energy, due to the drop in the levels of reservoirs and hydroelectric production.
Also, due to the additional amount paid by the institute to import energy from the Regional Electricity Market (MER) in order to supply its clients and the other seven distributors in the country.
According to calculations made by the regulator’s technical teams, the amount to be reimbursed to ICE for additional expenses in 2023 (thermal generation plus imports) reaches ¢86,132.9 million. This includes expenses recorded between May and October of this year.
The proposed increase allows ICE to recover 50% of the expenses already incurred this year in 2024.It also contemplates the expenses that the institute will have during 2024 due to the same effects of the climatic phenomenon known as El Niño. It is estimated that for next year this amount will be ¢99,481.51 million.
In 2025, the 50% that was pending from 2023 and what ICE needs in that year to face the same phenomenon would be charged. Aresep’s technical report recommending the increase was sent to the energy superintendent, Mario Mora Quirós, on Monday, December 11, according to the official letter IN-0268-IE-2023.
This modification is in the process of public consultation for people to present their positions to ARESEP.
The tariff study sent to the superintendent for approval considers “the recognition of the liquidations from May to October 2023 (both months inclusive), which show a considerable expenditure in thermal generation and energy imports, while, on the other hand, it is projected for 2024 to continue with the trend of expenditure in thermal generation,” the document states.
“According to the above, the National Electric System (SEN) will face a very complex scenario in 2024 that will impact the cost of electric energy,” it adds.
The Energy Superintendent will have to decide whether or not to approve this recommendation before December 15.
