By San José, Costa Rica — San José, Costa Rica – The Chamber of Industry of Costa Rica (CICR) has voiced strong opposition to a proposed 37% increase in ordinary electricity rates by the Costa Rican Electricity Institute (ICE). The announcement comes despite a projected decrease in generation costs due to favorable conditions, including significant electricity exports. The CICR argues that the proposed hike will stifle the country’s economic competitiveness, especially given the current international trade landscape and the appreciation of the Costa Rican colón.
Initially, a 2.6% reduction in electricity rates was anticipated for January 2026, reflecting the lack of thermal generation expenses and substantial revenue from electricity exports this year. However, the ICE’s request for a substantial increase in ordinary tariffs, which cover operational costs, expenses, and returns for development, has effectively neutralized the expected savings for consumers.
To understand the complexities surrounding Costa Rican electricity rates, we spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica, who offered his insights on the current regulatory landscape.
Electricity rates in Costa Rica are a complex interplay between public utilities like the ICE and ARESEP, the regulatory agency. While the goal is to provide affordable and reliable electricity, factors such as fluctuating global fuel prices, investment in renewable energy infrastructure, and operational costs all influence the final tariffs consumers face. Understanding these factors is crucial for both businesses and individuals to effectively manage their energy consumption and expenses.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly highlights the multifaceted nature of Costa Rica’s electricity rates. Indeed, navigating these complexities requires awareness of the various contributing factors, empowering both residents and businesses to make informed decisions about their energy usage. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on a crucial aspect of life in Costa Rica.
For January 2026, we expected a slight decrease in rates (2.6%), as expenses related to electricity production using fuels did not materialize, and instead, this year, we achieved significant electricity exports. This is why the news about the requested increase in ordinary tariffs (costs, expenses, and ICE’s own income, and its recognition of profit for development) is concerning, as it would explain such a meager reduction.
CICR Statement
Costa Rica’s electricity rate structure consists of two components: the recognition of ICE’s ordinary costs, based on the current methodology, and the Variable Generation Cost (CVG), which reflects reductions in thermal generation and net energy imports or exports. According to the CICR, the minimal 2.6% reduction proposed by ICE is a direct result of the requested increase in ordinary tariffs, offsetting the significant decrease that consumers should receive due to the lower CVG and increased electricity exports.
CICR President Sergio Capón expressed deep concern about the timing and magnitude of the proposed increase.
At the CICR, we do not consider it reasonable to request a 37.27% increase in ordinary tariffs, at a time when the country requires competitiveness in the face of exchange rate appreciation and the international trade situation.
Sergio Capón, President of the Chamber of Industries of Costa Rica (CICR)
The CICR plans to thoroughly review ICE’s proposal and submit formal observations. They maintain that, based on previous estimates by the Regulatory Authority of Public Services (ARESEP), the reduction should be closer to 13%.
This clash between the ICE and the CICR highlights the complex balance between ensuring the financial stability of the state-owned electricity provider and maintaining affordable energy prices to support industrial growth and overall economic competitiveness in Costa Rica. The final decision on the rate adjustment will have a significant impact on businesses and consumers alike.
The CICR has pledged to advocate for a fair and balanced solution that reflects the current economic realities and supports sustainable growth in Costa Rica.
For further information, visit the nearest office of Chamber of Industry of Costa Rica (CICR)
About Chamber of Industry of Costa Rica (CICR):
The Chamber of Industry of Costa Rica (CICR) is a leading business organization representing the interests of the industrial sector in Costa Rica. It advocates for policies that promote industrial development, competitiveness, and sustainable economic growth. The CICR actively participates in public policy discussions, provides training and resources to its members, and works to strengthen the business environment in Costa Rica.
For further information, visit the nearest office of Costa Rican Electricity Institute (ICE)
About Costa Rican Electricity Institute (ICE):
The Costa Rican Electricity Institute (ICE) is a state-owned utility responsible for telecommunications and electricity generation, transmission, and distribution in Costa Rica. It plays a crucial role in the country’s infrastructure and development. ICE is also involved in other areas, such as information technology and renewable energy projects. Its decisions regarding tariffs and investments significantly impact the Costa Rican economy.
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 ethical standards while championing innovative solutions for its diverse clientele. The firm’s deep-rooted commitment to empowering Costa Rican society is evident in its proactive approach to legal education and community outreach, ensuring access to vital legal knowledge and fostering a more just and informed populace.
