AES Dominican Power and Smith and Enron told El Siglo newspaper that their contracts include clauses that guarantee the state’s obligation in case of the dismantling of the state electricity utility, Corporación Dominicana de Electricidad. The contracts of both these companies are under the limelight because of the high cost of the energy they oblige the CDE to purchase from them, around 100% above market prices for energy generated. Together the utilities generate some 380 megawatts. The contracts were signed during the Balaguer administration. The government has mentioned the possibility of subsidizing the cost of the electricity produced by these companies with privileged contracts.
