No Hike in Electricity, Regulator Turns Down ICE Request
The Autoridad Reguladora de los Servicios Públicos (Aresep) - regulator of public prices and services - said no to an increase in the price of electricity, turning down a request by the Instituto Costarricense de Electricidad (ICE) made last December for a 23% increase.

If the request had been approved, ICE would have been able to increase its revenues by ¢31 billion colones (us$59.6 million dollars), saying it needed the increase to develop new projects.

However, regulador general, Fernando Herrero, did not agree and considered the increase unfair that customers pay for ICE's future developments.

The regulator also took into account the blackout of last Thursday and the says of electrical service rationing on April 18, 19 and 20, to turn down the increase, telling the Institución to present an audited study on what caused the problem.

The Aresep also took into account that ICE has a surplus ofr ¢22 billion colones at the end of 2006.

"We also have seen that ICE has the ability to handle more debt, to invest in the projects it wants and it has not used up that possibility", said Herrero.

Herrero added that is important that ICE use its credit abilities to develop project rather than ask for customers to pay for them.

According to the rules, ICE can make a new request for an increase within 15 days, if it deems it necessary. Herrero, however, was very clear that in any such request ICE will have to present the information and analysis explaining why it needs the increase rather than use its credit potential.

The last time the Aresep approved a hike in the price of electricity was in March of 2006.