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A report in El Caribe newspaper states that between the generation stations and the electricity distributors there is a loss of over 40% of the energy produced. According to a note from the Ministry of Energy and Mines, for every 100 units of energy (gigawatts or kilowatts, it makes no difference) some 44% is lost in transmission from the generating station to the electricity distribution companies (EDEs).
The note says that this represents a monetary loss of over US$700 million so far this year.
Common sense indicates that this loss cannot be covered unless the EDEs charge more per kilowatt-hour (Kw/h), because they “bought” 100 units but only received 56, and they have to pay for the 100 that they ordered. It is a loss-loss situation.
The article also explains that there is about a 6% loss in collection of electricity bills in the country. Obviously, this is a...
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