Costa Rica News – What would it be like if the electricity and petroleum markets in Costa Rica were opened to competition? What if they had to be more efficient and price competitive against other companies? Would this boost business in the country and lower cost of living in the country?
With the cost of living rising in Costa Rica, authorities have to come up with new and improved ways to provide affordable services to the public. The Costa Rican Chamber of Industries (CICR) has come up with a creative solution but most of the rest of the industry is not on board.
CICR proposal is to allow regulated competition in the energy and gasoline sectors. These sectors are currently monopolies and by diversifying them, CICR believes that Costa Rica could finally see the institutions provide better services and internal improvements. Hopes are that this would not cause the system to collapse but in fact strengthen the already existing companies and make them the leaders.
In the last 8 years, the cost of energy has risen 148%. Costa Rica’s president has asked both the gasoline and electricity sectors for explanations of their high prices. CICR says that is it vital to review these factors but at the same time explore new ways to diversify.
Some ideas that have been brought up so far include importing and exporting natural gas. Eliminating the law that prohibits more than 15% private electricity generation is also on the list. CICR also posed the question of whether it was viable promote solar energy to homes and businesses.