"Energy Crisis" Solved!...

AndyGriffith

New member
Mar 11, 2010
326
15
0
Not quite.....

Another electricity tariff hike?
Writing in Hoy, electrical engineer Bernardo Castellanos questions the wisdom of the government once again wants to raise power rates on the grounds that neither the present electricity tariffs nor the government subsidy cover the costs of power distribution.

He comments that the IDB representative in the country, Manuel Labrado himself has stated that no matter how much money a business may derive, the problem is not solved if there is not adequate management of billing and collecting for the service.

Castellanos says Labrado has put it clearly. The problem is in the inefficiency and bad administration of the power distributors.

He called for the government to come up with a better strategy to justify the intention to raise rates again rather than using words such as "flexibilization" or "rebalancing" of electricity tariffs to camouflage the increases.

He said that the Public Electricity Corporation (CDEEE) stats in its Reports on Performance of the Electricity Sector indicate that the average intermediation of the distributors or the value added of distribution (VAD) is at US$0.06/Kwh. He says this is evidence that on average the companies have been billing much more than what it costs them to purchase the power from the generators.

Castellanos believes that the government has better options. He states: "Before talking about flexibilizing or rebalancing rates, economic rationality needs to be imposed on the current expenditures of the government-owned electricity companies. He says that their monthly payrolls have increased on average US$156 million a year since August 2004. He believes that savings can also be made by reducing the 40% difference in energy billed and collected in areas where the PRA program is in effect and those without it. Also, he says rates should not be increased while the CDEEE continues to violate the General Electricity Law, especially its Art 110 that establishes that 80% is the maximum potency the distributors should contract with the generators, compared to 90% at present.

Castellanos writes that the "rebalancing" of rates would only serve to place an even greater burden on consumers who already pay for an expensive and very poor service, while maintaining the inefficiency and bad administration at the power distributors, the excessive spending on payrolls in the government-owned electricity companies.

He mentions that as of June 2010, the CDEEE had 15 advisors (RD$2.6 million a month), in addition to a payroll of 821 employees (RD$32.25 million a month) plus 168 military staff (RD$701,000 a month). "Does the CDEEE need so many staff and advisors to do their job efficiently?"

Rebalanceo de la tarifa el?ctrica - Hoy Digital
 

puryear270

Bronze
Aug 26, 2009
935
82
0
He mentions that as of June 2010, the CDEEE had 15 advisors (RD$2.6 million a month), in addition to a payroll of 821 employees (RD$32.25 million a month) plus 168 military staff (RD$701,000 a month). "Does the CDEEE need so many staff and advisors to do their job efficiently?"

But exactly how many of these actually show up for work? Just because someone is on payroll doesn't mean they actually do a job.
 

belgiank

Silver
Jun 13, 2009
3,251
103
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so, an advisor earns 175,000 rds per month, an employee on average 39,000, and you want corruption to stop???
 

Criss Colon

Platinum
Jan 2, 2002
21,843
191
0
38
yahoomail.com
"Leonels" Brother,Who Lives In NewYork City,....

Was on the payroll for $2,000 Us a month,until it came out in the newspapers last year!!!
It was the "same" here 25 years ago,it will be the same here 25 years from now!!!
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SteveS

Member
Apr 15, 2008
297
24
18
For once, I'd like to hear exactly what it is that these "advisors" do.

Not that I'm defending them, but apparently Celso Marranzini did say that several of the "Advisors" were a condition of the World Bank/IDB loan agreements.

Maybe they're checking where the money's going?!!