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Add 7% cover of ¢ 35,000 million missing in Institute

ICE defends light to cover rising fuel costs

Merceded Aguero R. This e-mail address is being protected from spambots. You need JavaScript enabled to view it   01/03/2011

The Instituto Costarricense de Electricidad (ICE) yesterday defended the increase of 7% in electricity rates to cover a shortfall of ¢ 35,000 million for purchases of fuel for electricity generation.

This expenditure was made in 2010, but was not recognized in the rates approved by the Regulatory Authority for Public Services (Aresep) in that year.

The adjustment would affect the ICE 628,361 direct customers and subscribers of electrical service companies and rural electrification cooperatives.

The Institute's proposal was discussed yesterday at a public hearing on the Aresep.

The ICE, represented by Francisco Garro, Tariff Management director, defended the need for these resources so as not to cause further damage to the finances of the institution.

He said for years the ICE brings a lag because its generation costs are higher than revenues from energy sales.

"ICE is required to ensure service provision and to this end, he had to get short-term loans to commercial banks.  These costs were not recognized by the tariff-regulator, "said Garrett.

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