The Chamber of Industry opposed a rate increase by the Instituto Costarricense de Electricidad, citing lack of control in the state run company’s expenditures.

A statement from the Chamber of Industries of Costa Rica (ICRC) reads:

Industrialists have opposed rate increase requested by ICE for 2013

-Requests have been made to ARESEP to review and correct estimates of demand in order not to artificially affect tariffs for consumers.

-The regulatory authority has been urged to exercise greater control over ICE’s operating costs in order to attain compliance with revenues established by ARESEP and ensure the sustainability of the service.

After a review of the documents for transmission, generation and distribution of electricity in which the ICE has requested a rate increase for 2013, the Chamber of Industries of Costa Rica will present this afternoon a number of specific requests to the Regulatory Authority for Public Services.

Specifically, the chamber cites differences between the costs estimated by ARESEP and the ICE’s own costs.

“For example, the cost of operation, maintenance, and marketing differ by 150%. Administrative costs by 22%, and production management costs by 27%. This is striking because when ARESEP estimates were made in 2009, it used the expected growth in economic parameters such as inflation, exchange rate and foreign inflation, which have not changed significantly from those expected for 2013”, noted Carlos Montenegro, sub director of the Chamber.