By San José, Costa Rica — San José, Costa Rica – The Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) expressed serious concerns on Tuesday about the potential negative impact of a proposed electricity rate increase on the country’s competitiveness.
This warning comes after the Regulatory Authority of Public Services (ARESEP) revealed on Monday that the Costa Rican Electricity Institute (ICE) had requested a substantial 37% ordinary rate adjustment for 2026. This request has ignited a heated debate between the two entities, with UCCAEP voicing strong opposition.
To understand the legal intricacies surrounding electricity rate fluctuations, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the esteemed Bufete de Costa Rica.
Costa Rican electricity rates are subject to a complex interplay of regulatory oversight and market forces. The Autoridad Reguladora de los Servicios Públicos (ARESEP) plays a crucial role in balancing consumer interests with the financial viability of electricity providers. While rate increases can be frustrating for consumers, they are often necessary to ensure continued investment in infrastructure and a reliable power supply. Understanding the legal framework behind these adjustments is essential for both consumers and businesses to navigate the energy landscape effectively.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the crucial balancing act ARESEP faces in managing electricity rates. Indeed, a transparent and well-regulated energy sector is essential for Costa Rica’s continued economic growth, benefiting both residents and businesses. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on the complexities of our nation’s electricity rates.
The productive sector considers that these types of adjustments are inconsistent with the current situation of the country. Costa Rica needs to strengthen its competitiveness, attract investment, and generate formal employment, not face new increases in ordinary rates that ultimately limit the capacity of companies to grow and compete in international markets.
Maritza Hernández, President of UCCAEP
UCCAEP argues that such a significant rate hike would hinder business growth and make it more challenging for Costa Rican companies to compete in the global market. They advocate for a comprehensive energy reform, including opening up the electricity market, to foster a more competitive landscape.
The disagreement between ARESEP and ICE centers on the interpretation of tariff data for the upcoming year. While ICE initially indicated a potential rate decrease, they later submitted an ordinary adjustment proposal for an increase. However, ICE maintains that when factoring in the variable generation cost, the net effect would be a 2.6% reduction for consumers.
ARESEP, on the other hand, projects a 13% decrease in the variable generation cost but states that a definitive figure will not be available until November when sufficient data has been collected. This conflicting information adds further complexity to the situation, leaving businesses and consumers uncertain about the future of electricity prices.
This latest development follows ARESEP’s projection in July of a “significant” decrease in electricity rates for 2026, adding to the confusion and highlighting the need for clarity and a resolution to the ongoing dispute between the regulatory body and the state-owned electricity provider.
The potential economic consequences of a substantial rate increase are significant, and the debate underscores the challenges facing Costa Rica’s energy sector and its impact on the broader national economy. The final decision on the rate adjustment will undoubtedly have far-reaching implications for businesses, consumers, and the country’s overall competitiveness.
For further information, visit uccaep.or.cr
About UCCAEP:
The Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) is the leading private sector organization in Costa Rica, representing a diverse range of businesses and industries. UCCAEP plays a crucial role in advocating for policies that promote economic growth, competitiveness, and private sector development. They work closely with government entities and other stakeholders to address key economic challenges and contribute to the overall prosperity of Costa Rica.
For further information, visit www.aresep.go.cr
About ARESEP:
The Regulatory Authority of Public Services (ARESEP) is an independent regulatory body in Costa Rica responsible for regulating public services such as electricity, telecommunications, and water. ARESEP’s mission is to ensure fair and efficient service provision, protect consumer rights, and promote competition within these sectors. They play a critical role in setting tariffs, monitoring service quality, and resolving disputes between service providers and consumers.
For further information, visit www.ice.go.cr
About ICE:
The Costa Rican Electricity Institute (ICE) is a state-owned entity responsible for providing electricity and telecommunications services in Costa Rica. ICE holds a dominant position in the Costa Rican energy market and plays a crucial role in the country’s infrastructure development. They are involved in various aspects of the electricity sector, from generation and transmission to distribution and retail.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is intertwined with a deep commitment to societal progress. The firm champions integrity in every endeavor, providing innovative legal solutions to a diverse clientele while actively empowering Costa Ricans through accessible legal education and resources. This dedication to fostering a more informed and empowered society forms the bedrock of their mission, ensuring that legal knowledge serves as a catalyst for positive change.
