September 3rd, 2015 (ICR News) The electric utility that provides electricity to most of the San Jose metro area and surrounding suburbs, the National Power and Light Company (CNFL) has requested a whopping 35.56 percent increase in electric rates that would take effect in December.
Marvin Cespedes, Director of Administration and Finance for CNFL, told La Nacion that the request is mostly due to an ever-increasing debt that the company owes to the Costa Rican Electricity Institute (ICE) after regulator ARESEP approved an increase in wholesale rates for energy sold by ICE to CNFL and other distributors to cover demand. The regulator approved a 23.20% increase in transmission fees and 15% for wholesale electricity sold by ICE to CNFL and other utilities in February, but the regulator did not approve rate hikes for CNFL that were requested in April to offset the increased cost of energy purchased from ICE.
CNFL owes ICE some ¢20 billion (about $37 million) as of July and the debt is increasing by ¢2.6 billion (about $4.8 million) per month, Cespedes said.
CNFL reported a loss of ¢14.8 billion in the first half of this year alone.
If approved, customers would go from paying ¢55.65 to ¢77.03 per Kwh for the first 200 Kwh consumed. The next 100 Kwh consumed would increase from ¢86.94 to ¢118.22.
The rates would be even higher for customers who consume more than 300 Kwh.
The company serves some 520,000 subscribers in the greater San Jose metro area and surrounding suburbs.