2004News

Pay up, please

Once again, non-payment is an issue in the electricity sector. This time, according to the Listin Diario, the problem is between the producers of ?spot market? electricity, Monte Rio, Union Fenosa and Seaboard, and the major production facilities of EgeHaina and AES (Ede-Este, DPP-Los Mina and AES-Andres). These spot producers handed Finance Minister Rafael Calderon, who is the head of the Commission for the Sustainability of the Electric Sector, a letter outlining the debts contracted on that market. Haina reportedly owes Monte Rio RD$76 million, and the AES group owes them RD$91 million. The Union Fenosa generating plants at Palamara and La Vega are asking AES for RD$98 million and Haina RD$115 million. Seaboard reported that AES and Haina owe them RD$190.8 million. The letter asks that Calderon and his fellow members, Cesar Sanchez, the head of the CDEEE, and George Reinoso, the Superintendent of Electricity, not to allow the financial condition of the two generating facilities to pull down the generators on the spot market because of their insolvency. The spot marketers also request a temporary halt to spot sales of energy and, as a second alternative, a resolution that bar companies with payment problems from purchasing on the free (spot) market unless they can show they are current with their obligations.