2004News

Electricity news

The major players in the generation sector of the Dominican electricity mess are arguing for a pact among all industry entities to put an end to the blackouts. Kevin Manning, a consultant for AES, told reporters from both El Caribe and Hoy that the first step in resolving the current crisis is to get all of the different parts to agree to a national program that addresses the dominant issue, which is the sector?s financial deficit. Manning said the sector will announce some possible solutions within the next few days.

Elena Viyella, the president of the National Council of Business (CONEP) and the CEO of Monte Rio power corporation, called for integrated action and the correct application of the law, along with a revision of the contracts that govern the buying and selling of energy. Viyella also called for swiftness and transparency in making payments and energized efforts at collection. The leader of the business community criticized the vertical integration of the sector, as in the case of AES and Ede-Este.

Listin Diario?s Bredyg A Disla reports that the CDEEE announced that the accounts are being squared away. The current 20-hour blackouts are being attributed to the mounting debts within the sector, rather than debts from outside the sector. According to a document obtained by the reporter, the Edes (the distribution companies) and the CDEEE collectively owe the generators US$314.6 million. If the figures are accurate, it becomes clear that the debts between distributors and generators have declined over the past months, as just a few weeks ago there was talk of debts to the tune of US$340 million and US$400 million. Through the reconciliation of accounts, it appears that government-operated Ede-Norte and Ede-Sur and the CDEEE owe US$183 million to the generators and AES owes Itabo US$129.9 million