Brazil has one of the most expensive prices of electricity in the world, even though it has one of the cheapest costs of production. The electricity price is higher than the prices of some developed countries, like Japan, the Netherlands and the United States.
The link below describes a 19 percent increase in the cost of power. This is not good news for an area of Minnesota trying to attract business. Industry and the poor sufferes when electricity goes up.
The majority of Minnesota Power’s rate request — $37 million — would cover such capital expenses as upgrades to transmission lines and power distribution infrastructure; measures to protect against extreme weather; and the integration of renewable energy generation into its grid. The rate hike also would help make up for lower sales revenue and help cover pension costs, the company said.
Minnesota Power, the major business
Costa Rica is also facing rising energy costs.
Back in March, the state utilities regulator announced that Costa Rica had met its yearly energy demand almost exclusively with renewable resources and, therefore, would be reducing electricity rates by about 12% from April. Now, April has come to an end and Coopesantos — an electrical cooperative with over 40,000 subscribers in the Central Valley — just came forward with not a reduction, but an increase of 8.7% to their rates.
In the United Kingdom
In 2004 an average home paid just £277 for gas and £288 for electricity, totalling £565. By 2014, the total cost for 15,000 kWh of gas and 3,800 kWh of electricity had risen to a staggering £1,344.
On the other hand, if market price reforms to electricity pricing continue, this will likely lead to higher prices. Higher prices will be an additional challenge to a manufacturing sector already struggling with rising labor, capital, and exchange rate costs. Some firms will struggle while others will succeed by focusing more on improving the value of their products as cost savings decline.