The Cámara de Industrias de Costa Rica (CICR) received with optimism the announcement that electricity tariffs will experience a decrease starting from 2025, thanks to the measures adopted by the Autoridad Reguladora de los Servicios Públicos (ARESEP). This solution, which includes compensation for previous costs and a more balanced commitment to electricity generation, will benefit all consumers, although the industrial sector warns that there are still important challenges to solve.
Reduction of electricity tariffs: A breather for consumers
In agreement with the ICRC, the reductions in electricity tariffs for next year will be possible thanks to the compensation of the Variable Cost of Generation (CVG), which has risen to ₡207,285 million, equivalent to 67.60% of the generation costs of the Costarricense Institute de Electricidad (ICE). ARESEP has decided that these costs are more offset by changes made to the review of ICE's ordinary gases and the application of the Normas Internacionales de Información Financiera (NIIF) on purchase contracts with private plants.
The president of the ICRC, Sergio Capón, expressed satisfaction with these averages, stating that end users will be able to pay less on their electricity bills starting from 2025. Furthermore, he appreciated ARESEP for having followed the Chamber's requests to request the settlements of previous years a favor for consumers.
Capón also demonstrated the importance of ARESEP's work in a proposal to reform the tariff methodology, with the aim of avoiding the inclusion of depreciation costs due to the revaluation of assets, which has historically generated additional loads in electricity tariffs.
Lower rates do not guarantee competitiveness
While the reduction in tariffs represents progress, the ICRC warns that this is not enough to ensure electrical appliances are competitive in the international context. According to Capo, consumers have already dealt with previous tariff increases, and while these decisions help stabilize them, the country continues to deal with major trading companies.
“If this decision for 2025 is a step in the right direction, we cannot ignore that we do not have competitive tariffs that stimulate the economic progress, work and well-being of the country. There's a lot of work to do,” Capón said.
The Chamber satisfied the need for electricity tariffs to be a factor that favored the competitiveness of the industrial sector, in order to become a barrier to economic growth.
Structural reform: an urgent need
The ICRC underlined the urgency of a structural reform of the national electricity system, asking political and institutional actors to move forward with the Draft Law on the Harmonization of the National Electricity System. This reform aims to:
- Increase and diversify electricity generation sources, promoting the use of renewable and alternative energies.
- Guarantee the continuity and quality of the electricity service, ensuring a reliable supplier to meet the country's growing energy demand.
- Increase private sector participation, promoting the shift towards new technologies and more competitive energy options.
During the 2024 Energy Congress, organized by the ICRC, experts noted that Costa Rica's economic growth is driving greater energy demand. Without structural reform, this demand could exceed the capacity of the current system, limiting industrial development and the transition to a sustainable model.
Hacia a sustainable energy transition
The Cámara de Industrias stated that Costa Rica had to transform its electricity system to ensure competitiveness and sustainability in large areas. This not only means lower tariffs, but also increasing the country's competitive activities, such as diversification of energy sources and modernization of electricity infrastructure.
“It is essential that the country advances towards an energy transition that allows it to consolidate a sustainable production model, capable of responding to the current and future demands of industry and consumers,” concluded Capón.
The reduction of electricity tariffs for 2025 is a significant progress that will benefit both consumers and industrial companies. However, the ICRC insists that this step must be accompanied by structural reforms that ensure competitive tariffs, a more efficient electricity system and a sustainable energy transition.
Dialogue between the public and private sectors will be key to building an electricity system that not only responds to economic growth, but also has Costa Rica's ability to compete in global markets.
