2001News

AES distributor does not agree with Union Fenosa distributor

Anibal Mejia, executive vice president of Edeste (AES), said that that company maintains excellent relations with the Dominican Electricity Corporation. CDE. He said the company has always found 150% support in Cesar Sanchez, the administrator, his economic advisor Edwin Cores and in George Reynoso, who is in charge of the electricity market. He did not corroborate last week’s declarations by Union Fenosa Edesur and Edenorte distributors in the DR (see http://www.dr1.com/daily/news041101.shtml) that allege they have met with obstacles from the CDE. AES- Empresa Distribuidora del Este, an American company which is in charge of distribution of power in the East, has been making a difference. The company is recognized for improving service and reducing complaints. On the other hand, Spanish-owned Union Fenosa’s affiliates Edesur and Edenorte are riddled with inefficiencies, long lines of people with claims in their offices, and even poor distribution of bills. Practices such as charging a RD$250 fee regardless of the service being disconnected or not, daily interest charges for late pay and abusive rate hikes have created widespread animosity against the company. The company has also been criticized for scrimping on the required investments to improve service. Responding to the criticism made by Union Fenosa executives, Cesar Sanchez of the CDE criticized the company’s practice of seeking clashes with the government to advance their position. He commented that the CDE less than a month ago signed changes in the contracts that improve the conditions granted to the distributors, allow them to increase rates in two years and extend the length of the contracts to 15 years. He asked, "What more do they want?"