2004News

Blackouts cut business

The prolonged electricity cuts are forcing some businesses to trim their working hours and send employees home early. The lengthy interruptions in power supply mean that most backup systems like inverters and generators are pushed beyond their limits. Supply is reportedly at well under 50% of normal capacity. Generating company Ege Haina yesterday produced just 46.5mw, when its usual output is 625mw. The reason being given by the power companies is that they do not have the money to purchase fuel due to government non-payment of bills. The message from the generating companies is simple and to the point: “If the government does not pay, we will not switch on.” The diesel (gasoil) shortage continues throughout the country, with the Dominican refinery Refidomsa rationing supplies to retailers, who are receiving about half the usual amounts. This in turn limits the use of backup generators. The worst-affected provinces are the northern towns of Monte Cristi, Dajabon, Santiago Rodriguez, Espaillat (Moca) and Puerto Plata. In Puerto Plata, resorts usually maintain two-week stock of fuel needs. Punta Cana and La Romana/Bayahibe hotels would not be affected by the fuel shortage as they source fuel directly through Wartsila-affiliate generation companies. The newspapers report that while power cuts in Santo Domingo were lasting as long as 15 hours, in some other areas of the country the situation was even worse. In the north-eastern city of San Francisco de Macoris power outages lasting 20 hours were registered, sending people out to the streets in protest in some neighborhoods. Finance Minister Rafael Calderon said yesterday that “the worst of the crisis would soon be over,” and promised a solution in the next few days. Part of the funds arriving from the Interamerican Development Bank and the World Bank will be allocated to paying off the government’s debts to the power generating companies. Calderon admitted that there would be a further price rise on electricity invoices in the coming months, which he calculated at 54%, while Diario Libre quotes Ege Haina general manager Tito Sanjurjo as saying that “the price will have to double.”