Electric Energy costs increase

Intelligent Economics > Analysis > Electric Energy costs increase

Net electric power generation was 1,770.81 (mkWh) in August 2021, an increase of 3% when compared to August 2020.  Net generation had not been higher than 1,770.81 since August 2017, just before Hurricane María hit Puerto Rico when it reached 1,799.5. Compared to August 2019, net generation is 5.15% higher.

Active clients in the residential class totaled 1,360,699, an increase of 1.1% compared to August 2020, and 1.3% to 2019. This class increased the most in August and has been increasing for the last 13 months.  Since the pandemic started, March 2020 has been the month with the fewest active residential clients when it reached 1,339,508, compared to August 2021 is 21,191 less. Commercial class active clients have increased by 1% both since August 2020 and 2019. Farm Lighting Class Active Clients have lowered by 1% compared to August 2019 with 11 fewer clients.  All active clients including residential, commercial, industrial, agricultural, and others were 1,487,601. Compared to August 2020, there are 1.1% more clients and by 2019 are 1.3% additional clients.

The average cost per kWh of all classes was 23.07 in August, 29% more expensive than in August 2020, and 5.5% compared to August 2019. The class with the highest increase in cost per kWh in August was the farming class clients. In August 2019 the average cost stood at 23 and in 2021, the cost per kWh is 108.2.  The residential class cost per kWh in August 2021 stood at 23.27, 47% higher than in August 2020. Compared to August 2019, the residential cost per kWh is 5% higher. The commercial class cost per kWh has increased 5.9% compared to August 2019 and 35% compared to August 2020. The industrial class cost per kWh increased 549% compared to August 2020 and 8% to August 2019. On the other hand, street lighting has decreased the cost per kWh from 28.8 in 2019, 29.21 in 2020 to 16.8 in 2021, that’s -45% and -43% respectively.

As the economy goes back to pre-pandemic levels, we can expect more reduced generation and consumption. It is expected for renewable energy to grow as petroleum prices are expected to increase. This may mean, besides public policy issues going on in Puerto Rico, possible higher energy costs. The Energy Bureau in Puerto Rico approved a 3.1% increase of cents per kWh solicited by the Puerto Rico Electric Power Authority (PREPA). This may be a sign of future increases to come.

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