Costa Rica News – So much for the false promises about electricity rates in Costa Rica remaining stable for the next year and a half. But we have gotten used to the Costa Rican government run monopolies inefficiencies being passed onto the public. Screw up pass the costs into those living in Costa Rica. That should be the motto for Recope and ICE.
The Costa Rican Electricity Institute and President Luis Guillermo Solis promised to keep the rates stable for the next year and a half. On July 21st ICE made a request to Aresep for an increase in rates.
Just days later, they asked for a rate increase of 3.7% to 7%, saying it was needed to import power from the regional electricity market. Carlos Obregon, ICE’s chief executive insists that amount was sought from ARESEP and was not a rate adjustment for the public.
Nonetheless, approval of a rate increased was officially published in La Gaceta yesterday. This news has caused frustration with ICE for their inconsistency. Not only have they broken their promise to keep rates stable, but the instability has made them uncompetitive, resulting in the loss of 6,000 jobs.
Due to increased rainfall, which is normal at the end of each year, we can expect the price to be a little less than originally expected, since more rain equals less money spent on fuels needed to generate electricity. The rate increase will take effect on October 1st, after adjusting for the variable cost of fuel for the quarter.
Something tells me that rates will probably not go down as expected, ICE will think of some excuse to keep them at the higher rate…….