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Competitiveness, foreign investment suffering due to high electricity costs

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June 19th, 2013 (InsideCostaRica.com) The high cost of electricity in Costa Rica is affecting the cost of production in the industrial sector and reducing Costa Rica’s competitiveness, according to business leaders.

 

Concerned about the consequences should electric rates remain at their current rates – or increase – leaders in the industrial sector are holding a forum on June 26th to discuss strategies for coping with the country’s high energy costs.

 

Industry leaders also say that increases in electric rates – which have been no less than 38% over the last 14 months – is hurting foreign investment in the country.

 

“Industry has been affected by an increase of 38% in the cost of electricity in the last 14 months.  This affects the cost of production, which makes Costa Rican products less competitive,” leaders said.

 

“There are production lines that no longer open – or worse, close – because another country can supply the product with lower costs.  This affects investment and real employment, and discourages foreign investment which has been instrumental in the development strategy of the country.”

 

“We were expecting [electric rates] to drop 19% in July, and now there are calls to lower rates by only 2% to 4%,” said Carlos Montenegro, deputy executive director of the Chamber of Industries of Costa Rica.

 

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  • georgechapogas

    of course the repelling of foreign investment would have nothing to do with the underwater nature of government expenditure, the lack of respect of law by reneging on contracts every time a bunch of stinking hippies from the university decide to march around like morons and the stated purpose of trying to relieve as many people as possible of their money because “they don’t need it”. nahhhhh it is all due high energy costs. other than fast food out lets every foreign business and many expats are looking for ways out, not ways in. the exact same situation applies to the USA. for the record it is not right or left, it is math, the government of any country does not do math, they do confiscation, they do force, they have an ideal, they pursue it, then whine about the unintended consequences.

  • mhogan

    Ya think “foreign investors” might be getting a little antsy at the upcoming “augmentation of salaries” and rising costs of EVERYTHING here? And how about the lackluster coverage on Costa Rica’s economy and the “data error” prompting revision of GDP forecast (downward)? Marching in protest with flags and cute slogans ain’t gonna fix what’s wrong here.
    A little transparency might help.

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