The president of the Social Christian Reformist Party (PRSC), Federico Antun Batlle, alerted the population to what he called the “abusive high price” consumers must pay for electricity service, now distributed primarily by the government itself following the buyback of the Edesur and Edenorte power distribution companies. Antun said that the exchange rate the government is using in the price index is well above the real rate. Furthermore, he informed that the government is not factoring in the reduction in the international price of fuel. Antun says that the overblown price charged to consumers has meant a bonus of RD$500 million a month in government revenues.
Diario Libre newspaper points out that consumers suffered the effects of a 59% rate increase in the rate from January to September, despite the long hours of blackouts dished out. The newspaper indicates that while consumption declined during that period by 22%, billing increased by 25%. Data for the analysis comes from this year’s third-quarter report published by the Central Bank.
The government has promised the International Monetary Fund to eliminate the subsidy on the rate that still benefits those consuming less than 200 kWh, plus more increases for other users of the service.
Power Superintendent Francisco Mendez said there will be no reduction in power rates. As reported in El Caribe, the government will compensate the major inefficiencies of the power distribution companies with increases for those who pay for the service. He argued that when the peso depreciated, the government did not increase the rate charged to consumers in the same proportion.