INE (Nicaraguan Energy Institute) Approves a 41% Consumer Price Increase in Electricity. How is that Solar looking now?

Headlines:

INE yesterday approved an adjustment in the rate of energy 41.8 percent, but guaranteed not to apply to users this year because the rate is frozen for a loan of Alba Caruna that Nicaraguans have to pay later.

The central government gave "assurances" yesterday that the power tariff will remain frozen all year, but also approved an adjustment to the final energy bill applied to users up 41.8 percent will take effect from this July.

Each month, consumers will receive the increase on the invoice and will see a subtraction of the same amount. The deduction will be under the "financing fund Alba".

DOUBLE CHARGE, FOR UP AND LOAN CARUNA

Although the rate stays frozen this year, GN/UF have the right to collect the 41.8 percent adjustment, once the funding runs out of funds Alba in January next year.

Marvin Pomares, leader of the National Institute for Consumer Defence Institute (INDEC), criticized the measure applied by the Government and said that this adjustment to the rate of energy was a prize for Gas Natural.

Pomares said "Everything is a patch and the end its the same consumer who has to pay," he added.

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Geotherm Assisatance

http://www.ram-power.com/Projects/San-Jacinto-Tizate-I--II-Nicaragua/def...

When the additional 72 MW are are online, I wonder if this will aid the decrease in rates. So much for cheaper living. Solar was always in my plans, I'll just have to increase the system. Better yet, I will just build a few hundred of these. Feeding them, is better than feeding the meter!

http://www.examiner.com/images/blog/wysiwyg/image/hamster.jpg

Solar

I run to much 220, dryer, range, hot water heater, and air conditioning, so Solar has never looked good to me, I'm spoiled. Vic

Well that proves the point I guess.

The rich will keep paying for high priced electricity and subsidize the poor!!

Sorry forgot the link from La Prensa

Expensive meters

Is all this to pay for the new AMR meters? :-)

The important piece is how much is the price UF is paying going to increase. That will tell us if it is buying a lot of meters or paying for the energy they resell.

As for solar, one of the big advantages is that it is close to a fixed cost. That is, you buy the panels, control equipment and batteries and you are done. While everything will eventually need to be replaced, 20-30 years for the panels, 5-15 years for the batteries (depending on what type you buy) and a pretty small failure rate for the rest of the equipment means you really know what electricity will cost for the next 5 to 30 years. And it matters little if the value of your favorite fiat currency falls through the floor.

Meter manufaturing

Video of the supposed manufactuing of meter boards by Camtronics for conectisys.the ones that are suppose to be installed by GNF.

http://www.youtube.com/watch?v=EefyRpJLGms

votes

They given people 6 months freeze.. so people in return give them their vote ....

later ..they take the subsidies back from people...but with interest !!!

Just a capitalist transaction under populist rules.

who gets the 41%

increase..u.f. ..or some one else

I think its Brilliant

First buy into the monopoly by taking a 16 percent stake in Spain's Union Fenosa, in return for wiping out an $11 million debt the utility had with the government.

Then collect a huge lending fund by selling Venezuelan fuel at a 50% profit (roughly speaking). ALBA CARUNA.

Then allow an outrageous price increase and force the customers to "borrow" money with interest to buy "Electricity Futures" on a use now and pay later plan.

A payment plan that nobody really asked for but are being forced into.

Make sure you keep the 150Kw per month subsidy in place so as not to upset the small user, the voter.

Remember the water payment proposal, the rich subsidizing the poor?

Letter of Intent, and Technical Memorandum of Understanding

http://www.imf.org/external/np/loi/2011/nic/040811.pdf

IMF April 8th 2011

Supplementary agenda 8. Electric power sector. The significant increase in oil prices will pose major challenges for the electricity sector during 2011. The average cost of electric power generation has outpaced the tariffs currently in effect. To forestall the impact that a sharp increase in electricity tariffs would have on economic activity and households, the government announced that aid resources from Venezuela will cover the gap between costs and tariffs. Use of these resources will not create public debt. The government will review the situation in the electric power sector in June, in order to establish, if necessary, a tariff adjustment timetable; the government will also assess options for more effective targeting of subsidies. To ensure the normal functioning of the sector, the central government will guarantee through the budget the payments of its electricity bill and of the energy consumption subsidies for customers paying social tariffs, pensioners, and disadvantaged neighborhoods.

________________________________

So is it a way to satisfy the IMF's queries on how much money ALBA CARUNA is making? i.e. Get rid of some, quick...pre-pay the country's electric increase to year end!!