El Caribe reports that if the government links power costs to the peso-dollar exchange rate, the price of electricity could rise by over 35%. This information was revealed to the newspaper by sources close to the power generating industry. So far, the rate used has been at RD$24.70 to the dollar, which has kept prices down, but this could change if the rate is calculated at the actual peso-dollar exchange rate of RD$35.
Not figured into these estimates is the additional factor of international fuel prices, which could aggravate matters further and may mean that the 35-40% rise is a conservative prediction, warns the newspaper.
Representatives of the power supply sector and the government have been meeting all this week to find ways of resolving the current crisis, which has seen an increase in power outages for consumers.
Many generators are out of action due to cash-flow problems: the generating companies are owed US$150 million by the distribution companies and consequently have no money to buy fuel. This is compounded by the fact that electricity consumer are paying the distribution companies a price that is ?not real?, which will continue as long as the rates are not linked to the actual peso-dollar exchange rate.
Despite the formation of a compensation fund, the government has failed to make the payments to the power suppliers as promised, and is currently US$200 million in arrears.
On the bright side, the newspapers are also reporting the entry into the power generation arena of AES Andres, a new 300-megawatt generator due to come into service in September. Powered by natural gas and costing an estimated US$400 million for its purchase, it is hoped by many that AES Andres will fill the gap in electricity provision.