Electricity Costs will Rise in February

Electricity Minister, Miguel Calahorrano, sent his letter of resignation, with his administration report, to President Rafael Correa.

Calahorrano indicated that the President is considering his resignation, but he said that he did not have any confirmation yet. However government officials claimed that the resignation of Calahorrano is assured; in his replace the names of Jorge Glas, the current minister of strategic sectors, and Bernardo Henriques, now manager of the CNEL (company that gathers the enterprices from the coast) and former adviser of President Correa in electrical issues, are among his possible successors.

In the result report of Calahorrano are the studies for the implementation of eight hydroelectric plants for this year and the technical study for the rise of electricity tariffs for some sectors of the population that exceed the consumption of 800 kilowatt hours of energy per month.
According to the analysis, the increase is addressed to the highest group of the population. “Those who have three refrigerators, four TVs, garden lighting or heat the pool water with electricity, will pay more,” said Calahorrano.

This means that subscribers, who pay a payroll above $120 per month, will pay more since February. The percentage depends on President Rafael Correa, who will take the decision based on the study that is already in his hands.

The new electricity rates cause concern on the productive sectors. “An increase in electricity costs would decrease the competitiveness of the country, according to Blasco Penaherrera, president of the Business Committee, it would raise production costs, would lead to higher prices and would affect employment.”
To this, Luis Ordóñez, technical of the sector, respond: “The industrial rate have a lower cost than the residential, so the increase does not have a major impact on the productive sector. Actually, the auto-producers will not have any raise.”

Source: Daily Expreso