Miguel Angel Tallaj, president of the Association of Industries of the North Region (AIREN), rejects any new increase in the rate of power as requested by the power generators and distributors to compensate for the devaluation of the peso and rise in inflation. ?Of course [such increases] would affect prices in the country and the government cannot accept the request from the generators because now is not the right moment,? he said. Tallaj also reminded that they have repeatedly said that Dominicans already pay too much for the electric service. According to him, the request of the generators for a gradual readjustment of the power rates should not affect the industrial sector.
El Caribe reported that power distributors Edenorte, Edesur and Edeeste, who allegedly hold a US$150-million debt with the power generators, argue that the rate they charge needs to be adjusted to promptly reflect the depreciation of the peso. Among the proposals made in a letter to the government dated 11 July is that the rate be adjusted monthly, instead of every two months, to more accurately reflect the exchange rate?s variations and so that they can meet their obligations to the generators.
President Hip?lito Mej?a said on Saturday that the Dominican government does not have any debts pending with the power generators.
Meanwhile, blackouts are once again besieging consumers at a time when the cost of fuel to run alternate power systems has reached record highs.
Speaking on the pre-taped ?Una Vez a la Semana? Sunday TV talk show on the state-run channel, President Hip?lito Mej?a said he himself is sick of the power problems. ?I am tired of this abuse, of the distributors and the generators and all that regards this activity; I, personally, am tired.?
President Mej?a has consistently blamed the past Fern?ndez government for the power problems. When on the campaign trail, Mej?a had promised to renegotiate the contracts for the benefit of Dominican consumers. Instead, however, the PRD-majority Congress approved extensions to prolong the contracts with the privatized companies and signed the Madrid Accord that extended the onerous contracts and granted even more generous benefits to the electric providers.
Mej?a complained that his government had paid US$50 million to the Cogentix power plant, which has been shut down for the past nine months. The deal negotiated by the operators of Cogentrix during the Fern?ndez administration continues to be another thorn in the system, with the government keeping the plant offline because it is more costly to run than to pay to keep it shut down.
Hoy newspaper editorial warns consumers should brace themselves for new increases in power bills. ?One aspect which has always come up is that the power market is built on a basis of inefficiency, distortions and abuses against consumers.?
Edwin Ru?z reported in the List?n Diario that consumers can expect a 40% increase in power rates by September, taking into consideration statements by power company advisor Eduardo Tejera.