Electricity rates hiked 9%

(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.

  • http://playaroca.com PRD

    This article should say energy hike 20%, only 9% is shown on the immediate bill. The rest is like putting the balance on an interest free credit card. It still has to be paid.
    My electric bill less than a year ago showed .045 C’s per KWHour. Last month it was over .075 KWH! That is already a 40% increase. Now another 20% raise, but will only see a 9% increase on my “PAYMENT” or VISUAL” portion of the bill.
    I feel like I am like most people, what comes out of my pocket is of concern, but if I don’t really see the increase (ALBA covered the costs not by “gift” but by adding to our debt, albeit interest free). That is a lot of dinero that will needed to pay back.
    My question is with this 60% INCREASE in less than one year, has oil costs gone up that much? Has wind, thermal, hydro and solar not made any impact on the amount of imported oil? And if so, how much and why hasn’t it had an impact on the quantity of oil imported. As I understand a lot of these renewable energy sources having been adding to the electrical grid a great deal recently AND will add more in the NEAR future.
    We are a very unique country in the world that has an abundance of all these natural sources of alternate renewable energy. Now borrowing for this seems a lot more prudent, for THAT will produce the savings or income to pay the debts we are incurring now.
    My feeling is that we could, if handled properly, be exporting energy instead of buying it at such exorbitant prices that seem to be accelerating at an alarming rate.
    Whoa folks, 60% in one year is beyond my comprehension, and in June there is another potential hike? This “black hole” is colored in OIL!
    My old roommate at college over 40 years ago sent me a picture of his still tinkering father totally rebuilding a 1918, I think Model T Ford, ELECTRIC CAR! Yes, 1918, we had the technology to run our automobiles on electricity, not petroleum, but we know that the combustion engine in a took us in different direction, didn’t it?