Electricity rates should not increase despite the energy crisis

Electricity rates for domestic consumers should remain the same, but many have noticed an increase in their electricity bills. The cost of the service influences the setting of rates. electric powerwhich depends on how it is produced, whether with water, gas, diesel or solar energy. And also indexed variables: if oil, gas, exchange rate, inflation rise, it affects rates.

Energy distributors buy electricity through tenders at a fixed price. A year ago, the cost of a megawatt was 39 dollarsbut it has currently reached $200 due to the lack of water in hydroelectric plants, which has forced the use of diesel, a more expensive fuel.

The president of the board of directors of the Economic Operation Committee of the National Interconnected System (COES), César Butrón, explained that the contracts between generators and distributors are long-term and cannot vary along the way, they must be maintained according to the price agreed in the tender. . This means that consumers should not be affected on their electricity bills.

Concern about the increase in electricity rates is due to the decrease in production at hydroelectric plants due to water stress caused by the El Niño phenomenon. The lack of water has forced the use of diesel, which has made energy production more expensive.

The marginal operating cost of power generators has increased $30 per megawatt/hour to $200 per megawatt/hour due to this situation. However, this has not been reflected in consumers’ bills due to long-term contracts already in place.

The outlook that Butrón foresees is that this situation is temporary and depends on the duration of the impact of the El Niño phenomenon in the country. When the phenomenon and the drought end, electricity production costs are expected to return to previous levels. If this does not happen and the contracts expire, the distributors will have to negotiate new contracts with the generators, taking into account the new costs.

However, this will happen in about 3 to 4 years. On the other hand, it is important to mention that electricity rates also depend on indexed factors such as natural gas, inflation, the dollar exchange rate and the price of diesel. If these factors increase, electricity rates will also increase. This is ratified by the former vice minister of Energy and Mines. Espinoza pointed out that today, we are already paying the price of last year, due to indexation. “Next year we will pay today’s price,” he said.

Butrón ruled out the possibility of electricity rationing in the country at some point.