ICE electricity rates will fall 5.8% in January

December 15th,2014

January surprise you with a discount of 5.88% in electricity rates paid by subscribers Instituto Costarricense de Electricidad (ICE).

The average household which consumes 250 kilowatt hours per month- pay ¢ 17,600 today. From January will be ¢ 16,564.

Customers of the National Power and Light Company (CNFL) feel a discount of 5% and the Administrative Board of Public Services of Carthage (Jasec) of 4.7%.

These decreases were approved by the Regulatory Authority for Public Services (Aresep) by a corresponding adjustment to variable cost of fuel. So he recognizes the ICE, each quarter, expenses for thermal generation.

According Carolina Mora, spokeswoman ARESEP, low response to the drop in fuel prices, the introduction of new renewable generation projects and the rise in energy imports to the regional market.

The Public Service Company of Heredia (ESPH) apply a drop of 4.7%; Coopesantos lower your rate at 3%; Coope Alfaro Ruiz, 2.6% and 1.7% Coopeguanacaste.

Coopelesca customers experience an increase of 2.18%.

The ICE warned last week that it might suffer a financial imbalance if ARESEP did not approve an increase of 13.2% in October he asked.

That application was frozen on Thursday, after the Constitutional Court suspended the hearing after hosting an amparo filed by the American Chamber of Commerce.

Source: "La Nación"

Costa Rica formalizes its incursion to the electrical network with the rest of Central America

Country may import and export energy to the other nations in Central America

October 16th,2014.

Costa Rica Thursday officially joining the Regional Electricity Market (MER) for importing and exporting energy by Electrical Interconnection System for Central America (Siepac).

After six years of delays, with respect to the other five members-the 29th of September, the country managed to sell cable on a journey of 32 kilometers (km) between Parrita and Palmar, Osa, preventing the flow of energy from Guatemala to Panama.

The exchange is now possible through a transmission line of 1,800 km long, of which 500 km are in the country.

According to the president of the Instituto Costarricense de Electricidad, Carlos Obregon, the link to that network would allow the country to acquire energy at lower prices and sell the surplus, but did not specify how much could be saving for the end consumer.

"It depends on the timing and conditions of the market (...) The processes in these things are slow, you have to go adapting the market, it is assumed that when there is a bigger market there is a possibility to optimize costs, but those are gradual processes that should be giving, "Obregon said.

For now, ICE has budgeted ¢ 19,000 million to import power in 2015, that amount is less because it is expected to increase hydropower generation of 280 megawatts (MW), following the expansion of the plant Cachi and opening blowdown.

The Siepac line has a capacity of 300 MW; more than 15% of the maximum demand of Costa Rica.

The project involved an outlay of nearly $ 500 million, of which the majority (about $ 253 million) was provided by the Inter-American Development Bank (IDB). The line is operated by the Company of the Network Owner (EPR), consisting of partners from different countries. Costa Rica was the 'most expensive' country to implement its incorporation into MER implied invest $ 145 million.

Source: 'La Nación'

Pending commitment with the electricity market

October 30th,2014.

On May 29 Regulation Regulatory Harmonization between the National Electricity Market and the Central American Electricity Market was published in the range # 98 of the Gazette, (MEN and MER, respectively), 10-41-2013 based on the agreement of the Board of the Regulatory Authority for Public Services (ARESEP), which in its title IV of the Final Provisions stated the following:

1. ICE ARESEP notify the administrative decision taken on the decision of assigning the functions of the system operator and market operator (OS / OM). Such notice must be performed within 30 days of publication of this resolution (Article 106 Determination of OS / OM and deadline for implementation).

2. ARESEP issued 30 days after publication of this resolution, the guidelines for national and regional actors do their registration with this entity (Article 107 Registration of agents and MER MEN).

3. Within a period not to exceed two calendar months from the date of the enactment of this legislation, the Instituto Costarricense de Electricidad (ICE) and its subsidiaries (...) proceed to create, through the relevant administrative body business units to identify and develop the activities currently carried ICE and its companies, consisting of generation, transmission, distribution and marketing (Article 105 Period for creating business units).

Notwithstanding the foregoing and dependability that lines the publication of a regulation by ARESEP, it is noteworthy that, to date, five months after publication of the regulation and defeated all the time, nothing is known about the efforts that are making ICE and ARESEP on these issues. Those interested in the scope of Regulation Regulatory Harmonization, and with some degree of participation in the industry, we expect to know the actions on these issues, are running these institutions, for the sole purpose of being able to plan the management of our activities short and medium term. Lack of timeliness generates uncertainty does not favor the development of the electricity market from the perspective of those who are interested in its evolution, growth and strength.

There is no doubt that ICE plays a fundamental role in the country's power industry, and MER and ARESEP, the issue of regulation, but no less important is the role that will eventually develop other market players. In this regard, it should be noted that for the smooth operation of the national electricity market in line with the regional, require clear policies and regulatory compliance, as applicable in the case of the Final Provisions of the regulation in question.

Very respectfully, I urge ARESEP and ICE to arrange needed to comply with the provisions in the Final Provisions. Thus, the institutional structure of the electricity industry is not compromised, but rather justifies and validates the performance of their duties, sending signals actors clear about the administration and the regulatory framework that should prevail in any regulated market .

Otherwise, the leaders of these institutions should rule on these issues and explain why the delay on schedule or if the provisions issued in Regulation are misplaced. This position may be entirely valid, but at least require the due justifications of silence that has prevailed to date.

Despite this, I hope to soon have my hands on the guidelines for national and regional actors can do their registration with ARESEP. Thus, all agents of the regional market can evaluate the future scope of work in Costa Rica, in the context of national and regional electricity market.

Source: 'La Nación'

Minae opens to allow more private generation

Minister backs upwards only if environmental and social safeguards are being applied

Acope questions technical justification for defining buffers and discrimination claims

October 25th,2014

The chief of the Ministry of Environment and Energy (Minae), Edgar Gutierrez, seen as an option to raise the ceiling to which they are forced to undergo private power generators in Costa Rica.

These companies and electrification cooperatives can not exceed 15% of the installed capacity of the National Electricity System (SEN), now 2,776 megawatts (MW). This was established by Law 7200 of 1990.

"Why set a percentage of participation? If there is a law to protect rivers and safeguards be established ... When prices are lower, why not buy? (...). Congratulations come these projects, "said the minister.

Gutierrez said that before considering the rising top three safeguards must be established: environmental stewardship, benefit sharing between the communities surrounding projects and studies on the cumulative effects of watershed.

Recent contracts approved by the Costa Rican Electricity Institute (ICE) 2015 - 220 MW of additional power - marking the arrival of private maximum limit.

Outraged. Mario Alvarado, director of the Costa Rican Association of Power Producers (ACOP), demanded an immediate stop rising. He claimed that the attachment is a discriminatory act that limits the private sector.

"There is no technical justification; caps are a political decision. The sector is able to compete as it should, "he said.

The minister admitted that individuals should have a greater and more equitable participation in the SEN in relation to the state Institute- and could serve to further support.

Depending on the time and power, the kilowatt hour (kWh) of private are cheaper than some produced by ICE, even in this there are also limitations: December is established that the existing private no matter what energy source trate- must sell 37 ¢ kWh.

Since I found that their prices could fall further, the Regulatory Authority for Public Services (ARESEP) seeks to modify the methodology prevents them from creating bands for existing private and flexible floor for the new band.

With ARESEP Minister agrees: "I do not approve of matching homes. The laws of the market, including lower prices, better competition. That would help lower electricity rates, "said Gutierrez.

Asked about the possibility of removing the floor of the band, Obregon merely stated that that is the sole power to ARESEP.

Today, ICE generates 74% of electricity in the country; the other 26% comes from non-state generators and cooperatives.

Their caps and participation will be discussed in the national dialogue.

Read more: 'La Nación'