2005News

Those who pay, pay for all

The 900,000 people that have contracts with one of the electric distributors (EdeNorte, EdeSur or EdeEste) are paying for the electricity being used by the two million people that have lights in their houses or places of business. Which is to say that 45% of the users are paying for 100% of the electricity. So says the Listin Diario reporting on statements by Francisco Mendez, the Superintendent of Power. Mendez also said that the repurchase of EdeNorte and EdeSur by the government also reduced the operating efficiency and the percentage of bill collection by these two distributors. Mendez offered his opinions to the editor in chief and the writers of the economic section of the Listin Diario.

Mendez said that the government is well aware of the situation and had begun an overall plan that the IMF had agreed upon in order to reduce the operational costs of the distributors by widening the collection base, injecting more money into the sector and negotiating the contracts, mainly the onerous Madrid Accord.

The idea is to rescue the industry that has maintained only 70% of the country with electricity since the beginning of the year. The goal is an auto-sufficient industry.

The superintendent sharply criticized the Anti-Blackout Program (PRA) instituted by the former government since it allowed, within a certain geographical area, persons with the capacity to pay to escape payment due to the location of their house or business. He called the PRA “a weight around the neck” of the sector. He said that now, with the push from the IMF, the government is trying to focus on the precise sectors that need to enter the subsidized program and place those that can pay in the regulated client lists.