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【Ferro-alloys.com】:Regarding a press release published this Monday, June 12 by the Public Services Regulatory Authority (ARESEP), the Costa Rican Electricity Institute (ICE) clarifies that:

• It did not request an increase in the electricity rate for the third quarter of 2023. On the contrary, since November 2022, the Institute asked ARESEP to modify the Variable Cost of Generation (CVG) methodology to apply an annual and not quarterly settlement – as is done today. This would make it possible to distribute throughout the year the costs for importing energy from the Regional Electricity Market (MER) and the purchases of fuel for thermal backup, which in a year like the current one, were estimated to be high due to the effect of the El Niño phenomenon. .

• It is an error to interpret that the electricity tariff will increase by 10.21 %. The correct percentage increase for the third quarter of 2023 –according to information from the Regulator– for the Institute's clients is 0.91% and not more than 10%, as was incorrectly indicated by the national media.

• Regulator has not resolved the Institute's request to mitigate the effect on rates for final consumers. As published by ICE last March ( see attached ), it sent four letters to ARESEP to change the obsolete CVG methodology. Despite these requests, the Regulator has not resolved ICE's technical proposal.

• ICE reservoirs operate as scheduled. The Institute reiterates that the Arenal Complex (made up of the Arenal, Dengo and Sandillal hydroelectric plants) operates within the conditions programmed for the extended dry season and the development of the El Niño phenomenon. The other ICE regulation reservoirs – Angostura, Cachí, Pirrís and Reventazón – are also within expected levels.

Finally, ICE publicly insists that the Regulator consider its technical proposal on the CVG, to contribute to the stability and competitiveness of electricity rates for all customers of the National Electric System (SEN).

• [Editor:Alakay]