The news couldn?t be bleaker. The power companies want Dominicans who pay for their power service to pay more. Power service in the Dominican Republic is one of the most expensive in the Americas, with consumers billed even for the blackouts. A large sector of the population, including the government, does not pay for the service, however, while the middle class and business sector pay dearly. Now, according to the privately-owned power distributor, AES, the present financial problems can only be resolved by increasing the rate invoiced to consumers to US$0.16 KWH, up from US$0.12 at present. Consumers have been experiencing sustained power increases for several months now, but apparently these are not enough.
Power outages lasting 12 hours have again become common, with consumers having to rely on their alternate power systems at a time when the prices of diesel and gasoline to fuel these small plants are at record highs. Several national grid network plants are no longer producing power, causing the current supply to be at least 40% less than the demand.
The Listin Diario cites an AES report in which it is stated that the blackouts are due to outstanding debts of US$400 million between power distribution companies and the generators. Julian Nebreda, of AES, argues that the blackouts are more costly to the country and consumers than their proposed rate adjustments. He advocates a tariff system that allows the increases caused by the depreciation of the peso and the higher cost of fuels to be regularly passed on to consumers.
Hoy newspaper reports today on the dismal reality regarding propane gas supplies. The newspaper says the Dominican Petroleum Refinery has not dispatched any supplies this week and informs it has on hand only enough to last a week. Propane gas is heavily subsidized in the DR.