Governor Pedro Pierluisi has indicated that he is not in favor of the Electricity Authority’s (PREPA) proposal to increase the cost of the electricity bill.
“No one wants an increase in light and I am included. Who wants an increase in light? Due to the information that has emerged, it is related exclusively to the cost of fuel. It is not motivated by administrative inefficiencies, “the governor said at a news conference in Bayamón yesterday.
PREPA has asked the Puerto Rico Energy Bureau (NEPR) to increase its electricity bill by 2.14 cents per kilowatt hour, which, if approved, would be reflected in the April-June quarter. PREPA attributed the proposed increase to the fact that in the first quarter of this year, between January and March, fuel and energy procurement costs increased.
The increase is now in the hands of NEPR, and the governor has asked the entity to “verify” whether it actually meets the cost of fuel.
“It is a regulatory body that was created to ensure that issues are properly addressed in PREPA and determines who has the final say in any rate hike,” he said.
He said that in the short and long term, the alternative is to “get out of fossil energy”.
“We must comply with public energy policy, which requires that 40% of energy come from renewable sources by 2025,” he said. “The renewable source is not only the cleanest, but it has a fixed cost. It cannot be subject to the cost of raising oil. People are seeing gasoline become more expensive because the cost of oil is not controlled by us. The solution is to stop burning oil and use the sun ”.
An increase of 11%
The proposed increase – an increase of about 11% – could increase the rate by $ 17 starting in April and is part of the public corporation’s quarterly review, as confirmed by PREPA CEO Efran Paredes during a radio broadcast. interview yesterday. He insisted that it only responds to the growth of fuel markets.
“It’s not good news, because it’s enough. When we look at it, the increase in the average residential consumer, of 800 kilowatt-hours, is about 17 USD. We are clear about that … The fuel item is an item that is sent directly to the customer “, the executive explained in an interview given to WKAQ.
PREPA is responsible for presenting the projections and costs to be reconciled, while NEPR evaluates, audits and determines the quarterly adjustment to be returned to the customer or vice versa. From 2019, as approved by the Bureau, the basic tariff for a residential customer within the General Residential Service (GRS) tariff with a consumption of 800 kWh remains the same with 5.73 c / kWh (cents per kilowatt hour).
On the other hand, there were price fluctuations due to adjustments in both fuel cost and energy purchases as the market changed. For the period from January to March 2020, before the pandemic, the cost per kilowatt hour was 22.80 c / kwh, the cost of fuel was 10.41 c / kwh and the energy purchase was 4.59 c / kwh.
“Unfortunately, although we are linked to fuel and market fluctuations, this is the reality we have,” Paredes added.
For his part, engineer Tomás Torres, a consumer representative before the PREPA board, indicated that he opposes the increase in electricity, because, as he claimed, it takes place at a time when the corporation is indicated by NEPR, precisely because of inconsistencies. in information. They present the costs and fuel inventory.
“The request is made in a scenario of multiple inconsistencies indicated by the negotiator regarding the cost and control of the fuel inventory. These inconsistencies in the cost and control of the fuel inventory continue to be assessed, so it is not appropriate to request or act on any increase request until all necessary investigations and analyzes have been completed, ”Torres said.
In addition, he stressed that energy cost adjustments should be made annually or every six months and not quarterly, as is currently the case. “The negotiator should consider adjustments over a longer period of time to provide greater stability of energy costs,” he said.
Concern in the commercial sector
For his part, the president of the United Retailers Center, Jesús Vázquez, said that another increase in electricity service will be to the detriment of the commercial sector “which has been severely disrupted by the pandemic”.
“They always hide behind the rise of oil and do not prepare when it is cheaper. Businesses and citizens end up paying for the disorganization of authority. There are companies that have been carrying out their obligations for a year and this is in addition to this growth. It is unfair and there will be those who cannot take the blow “, said Vázquez.