New Power Company???

Tallman1818

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Nov 19, 2007
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I heard on a Dominican radio talk show out of Santiago de los 30 Caballeros, that there is a group of Dominican business men working on a project to bring electrical power to the DR as a private company and provided cheaper to the public, has anyone here heard about this?????
 

Robert

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Jan 2, 1999
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The DR already has a few private power generators and distributors.

Punta Cana and Samana are two that come to mind.
 

Tallman1818

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Nov 19, 2007
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I heard that this company, was going to be out of Santiago catering specially to business in that city.
 
Feb 7, 2007
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Actually, almost all power generators are private.
AES Dominicana (AES Andres, AES Los Mina)
CESPM (Compania Energetica San Pedro de Macoris) - former Cogentrix
Sultana del Este
are just few that come to my mind.

Also, EdeEste (distributor) is half-private.

The plants that are being proposed will provide the MOST EXPENSIVE power, because they will use Fuel Oil #6 (one of the most expensive carbohydrates), they are floating power plants the generators will be brought in from Finland. The production cost is about 20 US cents per kwh.
 

Tallman1818

New member
Nov 19, 2007
393
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Actually, almost all power generators are private.
AES Dominicana (AES Andres, AES Los Mina)
CESPM (Compania Energetica San Pedro de Macoris) - former Cogentrix
Sultana del Este
are just few that come to my mind.

Also, EdeEste (distributor) is half-private.

The plants that are being proposed will provide the MOST EXPENSIVE power, because they will use Fuel Oil #6 (one of the most expensive carbohydrates), they are floating power plants the generators will be brought in from Finland. The production cost is about 20 US cents per kwh.

My understanding of this new plan, is that it will NOT count on public funds (sudsidio) from the goverment and it will be 100% private to the point where they will provide better power and services to business and homes in the Santiago area.
 
Feb 7, 2007
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There are two power projects announced by CDEEE's VP Segura - one is the floating power plants I mentioned, and one is expanding existing power plant in Cibao (I think in Santiago) so that its output is increased by 10%, totaling about 210 MW. Maybe this is the one you are talking about.

But in the DR, all and every power plant counts on subsidies because:

1) The plants generate electricity at too high cost, which the public could not bear on its own - Acuerdo de Madrid has generation prices of up to US$0.26 per kWh - that is 10 pesos per kWh - consider kWh start at 3 pesos and top at 8 pesos per kWh. = subsidies necessary.

2) The plants that generate electricity at lower cost (E.g. AES Andres) don't get paid all the money by the distributors, because they can't recoup all the money from subscribers - too much electricity being stolen. The Index of Cash Receipts (Indice de Recuperacion de Efectivo) is about 60% national average - that means 40% of all electricity delivered gets stolen and/or invoices not paid. = subsidies necessary.

Btw all power plants in the DR generate very hefty profits, even with government being late in paying they still have lots of $$$ on their books.


As one DR journalist wrote, "unless the power cuts stop being lucrative the energy problem will never end...."

how's that?

High cost of generation + Unpaid bills + stolen electricity = Excessively high "cost" of generation = Hefty profits for power generators (and other people behind the scenes)