The Ege Haina power generation company notified the government that it would disconnect from the power grid tomorrow because it cannot sustain its rising debt with Union Fenosa power distributors. Ege Haina supplies 400,000 megawatts, or 35 percent of the local production, according to a report in the Listin Diario. The company says that Union Fenosa affiliates owe it US$29.3 million and RD$39.1 million.
In August 2002, the government announced it had reached an agreement that allowed the power distributors to significantly increase power rates so as to resolve their financial troubles and put an end to blackouts. The money should have been used to pay debts with the power generation companies, but apparently this has not happened. Meanwhile, consumers have had to endure 50 to 200 percent increases in their consumer power bills.
