Governor Pedro Pierluisi said he was not in favor of the Electric Power Authority’s (PREPA) proposal to increase the cost of the electricity bill.
“Nobody wants an increase in light and I take myself with me. Who wants more light? Because of the information that has emerged, this is only and exclusively linked to fuel costs. It is not motivated by administrative inefficiency, ”the governor said at a news conference in Bayamón yesterday.
PREPA requested the Puerto Rico Energy Bureau (NEPR) for an increase in its electricity bill by 2.14 cents per kilowatt hour that, 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, the purchase costs for fuel and power increased.
The increase is now in the hands of the NEPR and the governor has asked this entity to ‘verify’ that it is actually responding to the fuel costs.
“It is a regulatory body set up to ensure that things are properly dealt with in PREPA and who will determine who has the final say on any tariff increase,” he said.
He stated that, in the short and long term, the alternative is “to come from fossil energy”.
“We must comply with public energy policies that require 40% of energy to come from renewable sources by 2025,” he said. “The renewable resource is not only the cleanest, it also has fixed costs. It cannot be subject to rising oil costs. People are seeing how gasoline is getting more expensive because oil costs are not controlled by us. The solution is to stop burning oil and use the sun ”.
An increase of 11%
The proposed increase – which represents an increase of about 11% – could increase the rate by $ 17 from April and is part of the quarterly review being conducted by the public company, as confirmed by PREPA CEO Efran Paredes, during a radio. interview yesterday. He insisted that it only responds to the increase in fuel markets.
“It’s not great news, because it is enough. Looking at it, the increase in the average residential customer, 800 kilowatt hours, is about $ 17. We are clear about that … The fuel item is an item that is passed directly to the customer, ”said the executive in an interview with WKAQ.
PREPA is responsible for presenting the projections and costs to be reconciled, while the NEPR evaluates, checks and determines the quarterly adjustment to be returned to the customer or vice versa. Since 2019, as approved by the Bureau, the basic rate for a residential customer remains below the General Residential Service (GRS) rate with a consumption of 800 kWh equal to 5.73 c / kWh (cents per kilowatt hour).
On the other hand, there are price fluctuations due to adjustments in both fuel costs and energy procurement as the market has changed. For the period from January to March 2020, prior to the pandemic, the cost per kilowatt hour was 22.80 c / kwh, fuel costs 10.41 c / kwh and energy purchase 4.59 c / kwh.
“Unfortunately, while we are bound by fuel and market fluctuations, this is the reality we have,” added Paredes.
For his part, the engineer Tomás Torres, consumer representative for the PREPA board, indicated that he is opposed to the increase in electricity, because, as he argued, this is happening at a time when the company is designated by the NEPR, precisely because of inconsistencies in the information. They provide information about the costs and inventory of fuel.
“The request is executed within a scenario of multiple inconsistencies identified by the negotiator regarding the cost and control of the fuel supply. These inconsistencies in the cost and control of the fuel supply are still being evaluated, so it is not appropriate to request or take action on an increase request until all required investigations and analysis are finally completed, ”Torres stressed.
In addition, he points out that the adjustments in energy costs must be made annually or semi-annually and not quarterly as is currently the case. “The negotiated should consider longer period adjustments to provide more stability in energy costs,” he said.
Concerns in the commercial sector
President of the United Retailers Center, Jesús Vázquez, for his part, confirmed that a new increase in electricity service will be detrimental to the commercial sector “which has been greatly disrupted by the pandemic.”
“They always hide behind the increase in oil and don’t prepare when it is cheaper. Businesses and citizens ultimately pay for the disorganization of authority. There are companies that have been dragging commitments for a year and this is added to this increase. It’s unfair and there will be people who can’t take the blow, ”said Vázquez.