ICE Announced Higher Electrical Rates To
Avoid Blackouts in 2008
The high cost of the
contingency plan to
avoid black outs for the
coming year will cost
dearly as the Instituto
Costarricense de
Electricidad (ICE) will
need to spend us$170
million dollars for the
operation of the thermal
plants.
That cost does not
include the cost of
purchasing fuel.
According to ICE
estimates the cost in
2008 will be almost
double that of 2007 as
the state institution if
forced to generate
electricity using diesel
and bunker fuels to meet
the demands.
Last year ICE says it
spent us$100 million
dollars in the purchase
of fuels, while during
the first three months
of this year it has
already spend 86% (us$76
million) of the total
budget of the year .
What this all means is
an increase in
electrical rates.
ICE has calculated that
it requires an increase
of between 5% and 8.5%
to all customers. The
amount of the increase
is expected to be known
in this month.
To avoid the power
blackouts and rationing
that was experienced in
the early part of this
year, ICE says it has to
increase generating
capacity by 200
Megawatts, 10% more than
the current production.
ICE says that it has
already leased, for a
two year tem, from
Alstom Power Rentals, a
U.S. company, a series
of small generators that
will produce 90
Megawatts of power. The
generators will be
installed in Barranca,
Puntarenas, near the
Recope pipeline that can
supply fuel to the
generators.
With respect to the
other 110 Megawatts of
power, ICE says it is
reviewing offers from
various bidders.
Luis Pacheco, an adviser
to ICE, said that the
cost of the plan will be
passed on to consumers,
but only for the coming
year.
Pacheco added that the
institution is
considering establishing
a rate solely for the
purpose of covering the
cost of the uel
purchases and that ICE
is considering other
sources of financing for
the plan, including a
credit line of us$65
million from the Banco
Centroamericano de
Integración Económica
and us$130 million from
local banks.
For his part, the
minister of the
Environment, Roberto
Dobles, says the plan
guarantees the flow of
electricity for 2008
while the institution
continues to develop a
long term plan. |
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