Uncertainty in Electricity Future of Costa Rica

Delays in the construction of the large hydropower projects and increases in their costs are making the future level of electricity tariffs unpredictable.

www.Elfinancierocr.com reports that "The Association of Major Power Consumers (Acograce) and the Chamber of Industries (CIRC) believe it is time for the Costa Rican Electricity Institute (ICE) to improve and streamline their internal processes, which because of their slowness and bureaucracy, is costing the country many millions."

The lack of estimates by the Instituto Costarricense de Electricidad (ICE) and the Autoridad Reguladora de los Servicios Públicos (Aresep) of electricity prices, has caused concern among entrepreneurs, representatives of the major energy consumers.

"Ronald Jimenez, president of Acograce, said the price of the projects should not be unlimited. Carlos Montenegro, the CIRC's deputy executive director, considers the projects to be strategic, but warned that only competition in electricity generation will ensure that plants contribute cheap kilowatts."

The increase in costs of the hydroelectric plants under construction, and the resulting increase in the rates for the electricity produced, "has put the business sector on alert, and they are warning of a loss of competitiveness compared to other countries where the industry has lower rates."

Source: elfinancierocr.com

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