Governor Pedro Pierluisi Urrutia indicated that he does not favor the proposal of the Electricity Authority (AEE) to increase the cost of the electricity bill.
“No one wants an increase in light and I include myself. Who wants an increase in light? From the information that has transpired, this is linked solely and exclusively to the cost of fuel. It is not motivated by administrative inefficiencies,” he said. expressed the governor yesterday, during a press conference in Bayamón.
The EEA asked the Puerto Rico Energy Negotiator (NEPR) for an increase in the electricity bill of 2.14 cents per kilowatt hour, which, if approved, would be reflected during the April quarter. in June. The EEA attributed the proposed increase to the fact that during the first quarter of this year, between January and March, fuel and energy purchase costs rose.
The increase is now in the hands of the NEPR and the governor asked this entity to “verify” that it is in fact responding to the cost of fuel.
“It is a regulatory body that was created to ensure that matters are handled well in the EEA and establishes who has the final say in any increase in the tariff,” he indicated.
He stated that in the short and long term, the alternative is to “get out of fossil energy”.
“We need to comply with the public energy policy that requires that by 2025 40% of energy come from renewable sources,” he expressed. “The renewable source is not only the cleanest but has a fixed cost. It cannot be affected that the cost of oil went up. The people see how petrol is coming out more expensive because the cost of oil does not we control it. The solution is to stop burning oil and use the sun. “
An increase of 11%
The proposed increase – which represents an increase of approximately 11% – could raise the rate by $ 17 from April and is part of the quarterly review conducted by the public corporation, as confirmed by the executive director of the EEA, Efran Parets, during a radio interview yesterday. He insisted that it responds only to the increase in fuel markets.
“It’s not nice news because it’s pretty. When we look at it, the increase in the average residential customer, 800 kilowatt hours is about $ 17. We’re clear with this … Fuel departure is a passing game directly to the customer, ”the executive explained in an interview with WKAQ.
The EEA has the responsibility to present the projections and costs to be reconciled, while the NEPR evaluates them, audits them and establishes the quarterly adjustment to be returned to the customer or vice versa. As of 2019, as approved by the Negotiated, the basic tariff for a residential customer covered by the General Residential Service (GRS) tariff with a consumption of 800 kWh remains the same 5.73 c / kWh (cents per kilowatt per hour).
In contrast, there have been fluctuations in price due to adjustments in both fuel cost and energy purchase, as the market has varied. For the period from January to March 2020, prior to the pandemic, the cost per kilowatt hour was 22.80 c / kWh, the cost of fuel was 10.41 c / kWh and the purchase of energy 4.59 c / kWh.
“Unfortunately, as long as we are tied to fuel and market fluctuations, that is the reality we have,” Parets added.
For his part, the engineer Tomás Torres, representative of consumers before the board of the EEA, indicated his opposition to the increase in electricity, as he said it occurs at times when the corporation is designated by the NEPR, precisely because of inconsistencies in the information they submit about the cost and inventory of fuel.
“The request is carried out within a scenario of multiple inconsistencies noted by the negotiator regarding the cost and control of fuel inventory. These inconsistencies in the cost and control of fuel inventory continue to be assessed, so it is not appropriate to request or act on any request for an increase until all the required research and analysis is finally completed, ”Torres stressed.
In addition, he noted that energy cost adjustments should be executed annually or every six months and not quarterly as is currently the case. “The negotiator should consider the adjustments over a longer period of time to provide greater stability in energy costs,” he pointed out.
Concern in the commercial sector
For his part, the president of the United Center for Retailers, Jesús Vázquez, stated that another increase in electricity service will be detrimental to the commercial sector “which has been severely disrupted by the pandemic”.
“They are always shielding themselves from rising oil and are not preparing when it is cheaper. Businesses and citizens ended up paying for the disorganization of authority. There are businesses that have been dragging obligations for a year. and this is compounded by this increase. It is unfair and some will not be able to withstand the blow, “said Vázquez.