The crisis in the power sector, which has seen the country plunged into prolonged blackouts over the last week, has hit a new low point with the announcement that the US corporation AES wants to sell its 50% share in power distribution company Ede-Este. This follows negotiations between AES and its partner, the Dominican government, which controls the other 50%. A statement from AES says that the current crisis in the electricity sector means that it is no longer financially viable for them to continue operating the power distribution service. The main problems it confronted were the peso devaluation and delays in tariff adjustments and subsidy payments, said the statement. Company chairman Joseph Brandt said that over the last four years AES had made every effort to improve Ede-Este’s operations, but that the deterioration of the nation’s power sector had forced them to reassess their presence in the country. “To remain, given the current outlook, would imply substantial financial losses that we are not willing to incur.”
Ede-Este is the only power distribution company that remains in foreign hands since the government took over the other two, Ede-Sur and Ede-Norte, from Spanish company Union Fenosa last year. Ede-Este supplies 300,000 clients in the east of the country and in areas of the capital east of Ave. Maximo Gomez. Most government operations fall under contract with Ede-Este and the government is known to not pay its own power consumption bills.
AES went on to assure, however, that it would not sell its shares in the power generation sector. It called on the Dominican authorities to take immediate measures to save the electricity generating sector. “We are the largest generating company in the country and we have shown our commitment through the investment we have made over the last few years. We hope that the government will take the necessary measures for the recovery of the sector.. AES’s power generating operations are in the Itabo, Los Mina and Andres, Boca Chica electricity generating stations. AES operates a US$400-million liquefied natural gas import terminal, regasification facility, pipeline and a 300-MW dual fuel-fired (natural gas and No. 2 oil) combined cycle power plant in Andres, Boca Chica.