AES is earning million dollar sums because of the terms written out in the Madrid Accords, subscribed by the Dominican government and the Independent Power Providers (IPPs). According to CDEEE administrator Radhames Segura, AES is taking what might be called an unfair advantage of the terms of the accords, and this, in turn, limits competition in the “spot” market. According to Segura, AES tells its subsidiary Ede-Este to purchase costly energy from another subsidiary, AES-Andres and Dominican Power Partners. According once again to Segura, AES purchases energy on the local spot market at US$0.085 per kwh and then sells it on to the distributors at the Madrid Accorded price of YS$0.13 per kwh. Segura explained that Dominican Power Partners had an agreement with Ede-Este to supply 200 Megawatts within the Madrid Accord, but the generator is not operating its own units. Rather, it is purchasing energy on the spot market and then re-selling it to Ede-Este. Ede-Este also purchases another 50 Megawatts from AES-Andres under the same conditions. The CDEEE administrator said that meanwhile, Ede-Este is carrying an impressive level of losses due to the poor energy management, but still reports large earnings to head office. Moreover, AES also manages the Itabo Electricity Generation Park, and this facility has a commitment to produce 300 megawatts for the national grid. However, at the present time it is only producing 120 megawatts and is purchasing the remaining 180 megawatts under the same conditions as Dominican Power Partners. This process, according to Segura, puts a damper on the competitiveness of the energy market and keeps the distributors’ costs high. Segura also pointed out that there is no escape clause in the Madrid Accord that could protect the Dominican state from these situations.