It appears that the government is planning to abolish subsidies for electric power customers who consume more than 200mw per month before renegotiating the contracts and making the process transparent, as promised by President Leonel Fernandez during his inaugural speech on 16 August. The reason given by Electricity Superintendent Francisco Mendez was that the renegotiation would be a lengthy process and the government’s priority was to increase its revenue by eliminating the subsidy costs. The subsidies would be phased out gradually as from October and November, explained Mendez, in order to minimize the impact on the middle classes. He also announced that US government aid agency USAID is currently conducting a study on payment options, marketing and subsidy methods that is intended to reform the process.