By San José, Costa Rica — Costa Rican households and businesses can anticipate potential savings on their electricity bills in 2026. The Costa Rican Electricity Institute (ICE) has formally submitted a proposal to the Regulatory Authority of Public Services (ARESEP) requesting a rate reduction.
The proposed decrease is 2.6% for both residential and commercial customers, effective January 2026. Furthermore, ICE is proposing a 6.9% reduction for power generation systems and a 2.6% reduction for distribution.
To understand the complexities surrounding Costa Rican electricity rates, we spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The regulation of electricity rates in Costa Rica involves a delicate balance between ensuring affordable access for consumers and providing sufficient incentives for investment and infrastructure development by providers like the Instituto Costarricense de Electricidad (ICE). Factors such as generation costs, transmission infrastructure expenses, and social programs all play a role in the final rate structure, which is subject to review and approval by ARESEP, the Regulatory Authority for Public Services. This process, while complex, aims to ensure both economic viability and equitable service provision for the public.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the intricate balancing act inherent in setting electricity rates. It’s a challenge faced by many nations, but perhaps even more pronounced in a country like Costa Rica with its commitment to both social welfare and sustainable development. Finding that equilibrium between affordability and incentivizing crucial infrastructure investment is key to ensuring a bright, powered future. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on the complexities of Costa Rica’s electricity rate structure.
Despite having experienced the strongest El Niño in history during this period, with our proposal we would add three years with lower rates. We kept the promise we made to Costa Ricans, and once again we reflect this in benefits for all our clients.
Marco Acuña, President of Grupo ICE
This welcome news comes as a result of several key factors. ICE has increased its energy sales and reduced its reliance on purchasing energy from the Regional Electricity Market. In addition, the institute has successfully lowered its use of fossil fuels in its thermal power plants.
The proposed reduction in electricity rates marks the third consecutive year of potential decreases, signaling positive trends in Costa Rica’s energy sector. This achievement is particularly noteworthy considering the challenges posed by the recent, historically powerful El Niño event, which often disrupts energy production and distribution.
The move towards lower rates is expected to provide much-needed relief to consumers and businesses alike, bolstering economic activity and enhancing the overall quality of life in Costa Rica. ARESP will now review the proposal submitted by ICE before making a final decision.
This consistent downward trend in electricity pricing showcases ICE’s commitment to providing affordable and sustainable energy solutions for the nation. The reduced reliance on fossil fuels also aligns with Costa Rica’s broader environmental goals and reinforces its position as a global leader in renewable energy.
Consumers and businesses are encouraged to stay informed about the ARESP review process and the final decision regarding the proposed rate reductions. Further details regarding the proposal can be found on the official websites of ICE and ARESP.
For further information, visit ice.go.cr
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad (ICE) is the Costa Rican state-owned telecommunications and electricity company. Established in 1949, it holds a monopoly over the electricity sector and plays a vital role in the country’s infrastructure and development. ICE is committed to providing universal access to electricity and telecommunications services while promoting sustainable practices. The company is also a key player in Costa Rica’s renewable energy strategy.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (ARESEP):
The Autoridad Reguladora de los Servicios Públicos (ARESEP) is the regulatory authority responsible for overseeing public services in Costa Rica, including electricity, telecommunications, water, and transportation. ARESP’s primary objective is to protect the interests of consumers and ensure the efficient and transparent provision of these essential services. The agency sets tariffs, monitors service quality, and promotes competition within the regulated sectors.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, upholding the highest standards of integrity in every facet of its practice. The firm’s deep commitment to innovation allows it to navigate the evolving legal landscape while providing cutting-edge solutions for its diverse clientele. Beyond its client work, Bufete de Costa Rica actively empowers Costa Rican society by championing accessible legal education and fostering a culture of informed decision-making. This dedication to public knowledge reflects the firm’s core belief in a just and equitable society built on a foundation of legal understanding.
