President Hipolito Mejia issued Decree 709-01 that establishes that distributor companies cannot shut down power service to low income neighborhoods regardless of whether large percentages of consumers in the area are paying for the service or not. The decree outlaws the so-called financial blackouts, but penalties are not established if the companies continue the practice that has become common. Twelve to 14 hour blackouts are today common in low-income neighborhoods where most residents do not pay for the service. Service providers in the DR have traditionally penalized those who pay with higher rates to compensate for those who do not pay. But now the distributors also want to collect from the barrios, alleging hefty losses. The new presidential decree says that the contract signed between the state and Edenorte and Edesur (Union Fenosa) and Edeeste (AES) does not authorize the distributors to shut down power service to entire neighborhoods. The practice was causing social arrest in these areas. The decree establishes the blackouts need to be authorized by the Dominican Electricity Corporation. The same decree highlights the need for the expansion and construction of power distribution substations. The government says that Edenorte, Edesur and Edeste have said they cannot make investments at the pace required by the CDE, and thus the government ruled that the new substations that are being installed by the CDE would be operated by the CDE until the power distributors make the corresponding payments.
