(posted Jan. 5, 8:20 p.m.)- The Nicaraguan Institute of Energy (INE) today approved a 9% increase in electricity rates due to rising costs of petroleum. The price hike will be effective Jan. 7.
On Wednesday, INE was flirting with the idea of a 20% energy cost hike, prompting grunts of disapproval from COSEP, the country’s main private business chamber.
Instead, a compromise was reached to raise electricity costs by 9% and subsidize the remaining 11% with a $26.1 million loan from ALBA (30-year term, 0% interest)—a fix that will get the country through until June.
Meanwhile, the government will continue to keep its fingers crossed that that oil costs fall before June, when the issue comes up again.