2001News

No short term solution to power problems

Power supply problems continued yesterday with long blackouts amidst an anticipated 20% billing increase for those paying more than RD$1,500 a month. President Mejia said he does not see a short term solution to the problem which he described as “financial.” The Superintendent of Electricity, Jose Dolores Ovalles, said a solution will not happen before 2003. He said the country is undergoing a tortuous, difficult and inevitable transition period. He said the solution will only come when there are more generators producing power more efficiently at lower kilowatt/hour prices. According to official reports, 15 generator plants were out of service yesterday, producing a deficit of 766 megawatts. The demand is 1,500 megawatts. EGE Haina has shut down its plants, claiming the government is in arrears with them at the same time that it is favoring the distributors by allowing them to increase their involvement in power generation. Although the country now has sufficient generation capacity, the government is behind in its payments. Government institutions account for some of the highest arrears. Thus the blackouts are caused by financial problems not a lack of power. A meeting is scheduled for 5 pm today at the Ministry of Industry and Commerce to find a solution to the financial difficulties. Meanwhile, individual interests seem to have delayed the passing of the Electricity Bill which has stagnated in the Chamber of Deputies. The Electricity Bill would provide a legal framework for the players in the power market.