President Leonel Fernández met yesterday with government officials and top executives of the two private companies that have been entrusted with the distribution of power in the DR. As a result of the meeting, the companies agreed to not apply Resolution 237-98 of the Ministry of Industry and Commerce that authorized a 5% increase in electricity bills, reflecting accumulated inflation. The electricity rate will be kept as it was on 1 August 1999. According credits will be granted to customers. In a note issued to the press on the outcome of the five-hour meeting, the government announced that blackouts will be cut short with the incorporation of 148 megawatts in coming days. This is the result of the going online of the following power plants: Cayman Power Barge II with 48 megawatts; Pimentel, with 35; Maxon in Barahona with 30 and Haina II with 35 megawatts. The government attributes the glitches in the service to a decline in the generation of energy, technical and logistical problems that are normal during the transition period of a privatization process. The government also called for an increase in coordination of sectors involved. The five-hour meeting took place at the National Palace. Participating were Karl Huber, for Empresa AES Distribuidora del Este and Mario Lopez Cabalero, for Unión Fenosa-Empresa Distribuidora del Sur and Empresa Distribuidora del Norte. In addition to President Leonel Fernández, the government was represented by Radhamés Segura, administrator of the Dominican Electricity Corporation (CDE); Antonio Isa Conde, director of the Commission for the Reform of Public Enterprise (CREP); Minister of Industry and Commerce Luis Manuel Bonetti; Secretary of the Presidency Alejandrina Germán; Technical Secretary of the Presidency Temístocles Montás and by the president of the Superintendency of Electricity, Marcos Cochón. While the Superintendency of the Electricity said the increase had been 5%, industries and residences complained they received bills with 20-40% increases. The increase met with opposition from business sectors and all political parties, including the ruling PLD. The main gripe was that the government had promised several times during the pre-privatization days that the privatization would not mean an increase in the price consumers paid for the service. Radhamés Segura, general administrator of the CDE, told the press afterwards that Congress needs to immediately pass the General Electricity bill. He said the bill need to be modified to incorporate provisions to protect Dominican consumers.
