Costa Rica News – Ice and Recope are truly showing why Costa Rica needs to eliminates it’s monopolies and open the market to competition. How many more screw ups need to be passed into the public before we see change?
ICE and Recope are at a shared 10 billion colones loss (about $18.5 million)which was created by buying a specialty bunker for the thermal plant in Garabito. The electricity institute and the petroleum refinery are to blame, but who will pay the price?
It seems that we, the consumers, will have to carry this weight with some sort of rate adjustment on what we pay for oil or electricity. Both of the institutions must work together to come up with a plan before the end of this year to pay this amount.
The refinery project began back at the end of 2013. Studies now find that the losses were due to the sale of this low sulfur bunker bought for ICE, under the pretense that its technical specifications would lower fuel costs.
In the original agreement, ICE was to pay the cost of the import, but when Recope asked for the payment, ICE refused, on the basis that Aresep must be the one to resolve the dispute over which organization pays what. Aresep must take into consideration that the most expensive bunker was bought because it would ultimately guarantee the energy supply for the country.
Yay! So they did not do the research required and a huge loss was taken. Now they will pass that onto the public in Costa Rica.
Where is the accountability?
