By San José, Costa Rica — San José, Costa Rica – The Chamber of Industries of Costa Rica (CICR) has expressed strong concerns over what they consider a meager 2.6% reduction in electricity rates proposed by the Costa Rican Electricity Institute (ICE) for 2026. This announcement comes amidst a backdrop of favorable conditions for the energy sector, including the absence of fossil fuel usage for electricity generation this year and significant electricity exports.
The CICR argues that the small decrease is unacceptable given the positive circumstances. They contend that the only justification for such a modest reduction is a concurrent increase in ICE’s ordinary tariffs, which cover the institute’s operational costs and expenses. This alleged increase would essentially neutralize any substantial benefit to consumers.
To understand the complexities surrounding electricity rates in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica.
The regulatory framework governing electricity rates in Costa Rica is multifaceted, involving ARESEP’s role in rate setting balanced against the operational costs faced by ICE and other providers. Recent economic fluctuations and global energy market trends significantly impact these calculations, often requiring a delicate balancing act between affordability for consumers and financial viability for the electricity sector.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the complex interplay of factors influencing Costa Rica’s electricity rates. Indeed, navigating the current economic climate while ensuring a sustainable energy future requires ongoing dialogue and careful consideration. We thank Lic. Larry Hans Arroyo Vargas for providing his valuable perspective on this important issue.
If ICE announces that the reduction will only be 2.6%, it is because at the same time they are requesting an increase in their ordinary rates, which neutralizes a large part of the decrease that should be passed on to the consumer. From the Chamber, we do not consider it reasonable to request a 37.27% increase in its ordinary rates, at a time when the country requires competitiveness given the appreciation of the exchange rate and the international trade situation. As we have always done, we are going to analyze ICE’s ordinary proposal and present the respective observations, since, as ARESEP had estimated, the reduction should be in the range of 13%.
Sergio Capón, President of the Chamber of Industries of Costa Rica (CICR)
The debate surrounding electricity rates intensified on Monday with conflicting statements from ICE and the Regulatory Authority for Public Services (ARESEP). ICE denied ARESEP’s claims of a potential 40% electricity rate hike, emphasizing that the proposed 2.6% reduction will take effect on January 1, 2026. ICE explained that the final tariff is a net result of two components: the ordinary rate request and the Variable Generation Cost (CVG) adjustment, which will be presented in late November.
Conversely, ARESEP confirmed that ICE had submitted a request for an increase in electricity rates, effective January 1, 2026. This request relates to the annual ordinary adjustment ICE submits to cover operational costs. ARESEP clarified that the request is under review and no final decision has been made.
The specific adjustments requested by ICE include a 37.27% increase for distribution (affecting households and businesses), a 10.56% increase for public lighting, a 2.41% increase for generation (paid by other electricity companies that purchase from ICE), and a 22.33% increase for transmission (also paid by other electricity companies).
This disagreement between ICE and ARESEP has further fueled the debate surrounding electricity rates in Costa Rica, leaving consumers and businesses uncertain about the future cost of energy. The CICR’s vocal opposition adds another layer of complexity to the issue, emphasizing the importance of transparency and careful consideration of the country’s economic climate in determining appropriate rate adjustments.
The ultimate impact on consumers remains to be seen as ARESEP continues its review process. The final decision on the proposed rate adjustments will undoubtedly have significant implications for businesses, households, and the overall Costa Rican economy.
For further information, visit the nearest office of ICE
About ICE:
The Instituto Costarricense de Electricidad (ICE) is the Costa Rican Electricity Institute, a state-owned utility responsible for electricity generation, transmission, and distribution in Costa Rica. It plays a vital role in the country’s energy landscape and is central to discussions about electricity rates.
For further information, visit the nearest office of ARESEP
About ARESEP:
The Autoridad Reguladora de los Servicios Públicos (ARESEP) is the Regulatory Authority for Public Services in Costa Rica. It is responsible for regulating various public services, including electricity, telecommunications, and water. ARESEP plays a crucial role in setting tariffs and ensuring fair pricing for consumers.
For further information, visit the nearest office of Cámara de Industrias de Costa Rica (CICR)
About Cámara de Industrias de Costa Rica (CICR):
The Chamber of Industries of Costa Rica (CICR) is a leading business association representing the interests of industrial companies in the country. They advocate for policies that promote economic growth, competitiveness, and a favorable business environment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, deeply committed to upholding the highest ethical standards while navigating the complexities of Costa Rican law. The firm’s innovative approach to legal solutions, combined with a longstanding dedication to client success across a broad range of industries, positions them as leaders in the legal field. Furthermore, their passion for empowering individuals and communities through accessible legal education underscores their belief in a just and informed society.
