Elimination of the Government's Electricity Subsidy

[NALs]

Expect electricity bills to increase more than usual during the next years.

In Oct 2021 starts the gradual elimination of the government's electricity subsidy. Yes, you read that right. The bill you get from the electric company, as expensive as it is, was the subsidized rate. lol

Electricity bills will be adjusted every three months to reflect the gradual elimination of the subsidy. This will take place until 2026.

Some social groups have criticized the measure claiming that a home that consumes less than 300kwh will see increases of their bill of 300%.

 

[windeguy]

It is time for everyone to pay what it costs. Of course the under 300 kWh users are heavily subsidized through the tiered pricing system charged by the government.

More important, It is long past time that electricity is on all of the time for everyone that pays for it, and for those that don't pay, they don't get any.

The poor performance of the EDE government run power distribution companies have been my single largest pet peeve in the DR, although CORAAPPLATA is going to take that lead soon.

 

[windeguy]

Is there a way to read about how this is going to happen with actual information on what is going to transpire?
Will there be a simple flat rate per kWh?

 

[NanSanPedro]

We don't have AC and our bills are always < 1k pesos. Even if it triples it's not that big a deal for us. For many Dominicans, I'm not so sure. This could lead to more electricity theft.

 

[bob saunders]

Expect electricity bills to increase more than usual during the next years.

In Oct 2021 starts the gradual elimination of the government's electricity subsidy. Yes, you read that right. The bill you get from the electric company, as expensive as it is, was the subsidized rate. lol

Electricity bills will be adjusted every three months to reflect the gradual elimination of the subsidy. This will take place until 2026.

Some social groups have criticized the measure claiming that a home that consumes less than 300kwh will see increases of their bill of 300%.

If the electricity was more reliable in current, voltage, and supply then paying more isn't a problem, but paying more for a poor product and poor service feels like robbery.

 

[windeguy]

We don't have AC and our bills are always < 1k pesos. Even if it triples it's not that big a deal for us. For many Dominicans, I'm not so sure. This could lead to more electricity theft.

And here I thought the electricity theft was eliminated. (Except in the case of large businesses with "connections", in a manner of speaking)
Edenorte forced the non-payers to get meters and pay in Cabarete. They monitor how much energy is "lost". I suppose that might not have been totally effective.

Simply causing everyone to pay for the electricity at the current top rate would still not be enough to cover the costs?

 

[MiamiDRGuy]

Now DR is talking about to guarantee end blackouts and increase electric rates because of this. The issue has been ongoing for 20+ years so I'll believe when I see it. The gov't needs to leave electric alone and let private co run it and that is where investment will begin to improve the system. But I don't think so. Blackouts will continue until whatever happens.

 

[JD Jones]

It was recognized decades ago that the electrical infrastructure was obsolete and had to be changed; something that could not possibly be done in a short period of time.
I'm sure there are quite a few folks here who remember the daily outages of 12-14 hours or more. I remember when free zone companies had to use generators all day, every day to run their plants.
I think they have made some pretty impressive gains in service since then.

 

[windeguy]

Now DR is talking about to guarantee end blackouts and increase electric rates because of this. The issue has been ongoing for 20+ years so I'll believe when I see it. The gov't needs to leave electric alone and let private co run it and that is where investment will begin to improve the system. But I don't think so. Blackouts will continue until whatever happens.

It was recognized decades ago that the electrical infrastructure was obsolete and had to be changed; something that could not possibly be done in a short period of time.
I'm sure there are quite a few folks here who remember the daily outages of 12-14 hours or more. I remember when free zone companies had to use generators all day, every day to run their plants.
I think they have made some pretty impressive gains in service since then.

In my opinion, making the electrical power distribution companies part of the government was one of the very worst ideas ever in the DR.

Yes, I remember getting between 10 to 12 hours of power each day back when Mr. Potato Head was President (Hippolito Mejia).

I also remember going to Edenorte on two different occasions with their telling me in order to get 24/7 power that we our community would have to pay over 100,000 US dollars to them to make that happen. While thousands of people a Km away living on supposedly government protected wet lands stole every kwH they could.

All one has to do is read the news for how corrupt the EDE's were. I saw it first hand in their offices. There are probably still court cases pending against their former corrupt leaders. Have they made gains? For sure. But they still have a way to go. Is making everyone pay what it costs a better way to go? Yes. But it had also better end any blackouts not caused by acts of gods...

 

[MiamiDRGuy]

In my opinion, making the electrical power distribution companies part of the government was one of the very worst ideas ever in the DR.

Yes, I remember getting between 10 to 12 hours of power each day back when Mr. Potato Head was President (Hippolito Mejia).

I also remember going to Edenorte on two different occasions with their telling me in order to get 24/7 power that we our community would have to pay over 100,000 US dollars to them to make that happen. While thousands of people a Km away living on supposedly government protected wet lands stole every kwH they could.

All one has to do is read the news for how corrupt the EDE's were. I saw it first hand in their offices. There are probably still court cases pending against their former corrupt leaders. Have they made gains? For sure. But they still have a way to go. Is making everyone pay what it costs a better way to go? Yes. But it had also better end any blackouts not caused by acts of gods...

Just go to Brazil, the POOREST country and they still get 24/7 power. How and why? Beats me

 

[Jumbo]

We don't have AC and our bills are always < 1k pesos. Even if it triples it's not that big a deal for us. For many Dominicans, I'm not so sure. This could lead to more electricity theft.

Perfectly said. Some of the poorest are the elderly. Cut their power and they are dead without a fan at night. First world prices for 3rd world pay. Of course the relatives on the no show payroll of the politicians imposing this cut from subsidies will just get a pay raise with the pesos saved. Next comes the cut of propane subsidies.

 

[josh2203]

We don't have AC and our bills are always < 1k pesos. Even if it triples it's not that big a deal for us. For many Dominicans, I'm not so sure. This could lead to more electricity theft.

Just did the math for Edenorte:

As the threshold if 300Kwh, if you consume that per month, your new bill will be double the old, if you consume 200kwh per month, the new bill will be 2.46 the old one.. That is with the current rates, which I believe they are still fighting about? So the rates may be changed of course...

If they continue like this, they are basically encouraging to consume more electricity, which is the contrary what many other countries are doing (encouraging to save it), so the people who least consume, will suffer the most... I hope the rate schedules get changed...

 

[CristoRey]

If they are going to get rid of the gov subsidies, they need to make sure these companies
are actually paying their employees livable wages. I know several people here who haven't
received their increase in pay as this government claims to have made these companies
(Zona Franca being the biggest offender) agree to. Lip service. Sound familiar?

 

[MiamiDRGuy]

If they are going to get rid of the gov subsidies, they need to make sure these companies
are actually paying their employees livable wages. I know several people here who haven't
received their increase in pay as this government claims to have made these companies
(Zona Franca being the biggest offender) agree to. Lip service. Sound familiar?

it will never happen, you know that

 

[Drperson]

Expect electricity bills to increase more than usual during the next years.

In Oct 2021 starts the gradual elimination of the government's electricity subsidy. Yes, you read that right. The bill you get from the electric company, as expensive as it is, was the subsidized rate. lol

Electricity bills will be adjusted every three months to reflect the gradual elimination of the subsidy. This will take place until 2026.

Some social groups have criticized the measure claiming that a home that consumes less than 300kwh will see increases of their bill of 300%.

The net effect of reducing electrical subsidies it to drive people off the campo where they are subsisting into the cities where they think they can make more money. Overcrowding. higher rent costs. lower wages. and crime are the outcomes.

It is the same thing as centralizing dairy production into super farms to eliminate the local producer which can survive selling milk from a small herd of cows.

It is destabilizing