The general administrator of the Dominican Electricity Corporation (CDE), Radhamés Segura warned power distributors that the government will not permit the suspension of power service at state institutions. He said the service is a matter of national security and used CDE personnel to reinstate the service. Segura mentioned that service was suspended at the Luis Eduardo Aybar public hospital, the Ministry of Agriculture labs, and the state television station. He stressed that the state is owner of 50% of the new power distributing companies.Power was suspended by the distributors after efforts at collecting from the state did not bring the desired results. With AES alone, the state has arrears of more than RD$160 million, according to news reports. AES-Distribuidora del Este said the company would return to negotiations with the state. Spanish company Unión Fenosa, whose affiliates are responsible for most of the billing in the DR, responded in a press release saying the government decision was a serious attempt against the contractual relations and the rights of the power distributors. Segura thinks differently, and said that the distributors have not fulfilled their contractual obligations, either. This is not a first time war is declared between the CDE and AES and Unión Fenosa. Both companies are insiders of the Dominican power market. Unión Fenosa, prior to winning the power distribution concession, had been for many years managerial consultant to the CDE. AES is the long-time operator of two power plants in the eastern side of Santo Domingo. Local privatization has been criticized for the lack of planning, and the lack of legal framework of a General Electricity Bill, this due to internal interests within Congress. Given this situation, only these two insiders apparently knew attractive profits lay in the disorganization of the system and showed an interest in bidding for the power distribution operations. Matters seem to have worsened during the days of transition between the outgoing PLD government and the incoming PRD government. While, the government is showing arrears in payment, increasingly more business associations and consumers are feeling the burden of being charged for blackouts.
