The Dominican Electricity Industries Association (ADIE) says the government is five months behind in its payments to some companies, as reported in El Nuevo Diario.
ADIE reports that the government arrears with the sector were at a historic US$818 million in the first week in August. The debt record was US$780 million in October of last year.
High levels of arrears usually lead to longer blackouts. The problem comes when the lack of cash flow reduces the companies’ capacity to purchase fuel for operating the plants.
ADIE, however, says that the situation is not linked to the increase in blackouts. The association’s press release said blackouts are caused when the distribution companies do not purchase the power they need in order to supply the demand. Distribution companies in the DR are government-owned.
ADIE says that the debt is the result of the distributors not being able to charge consumers for the electricity served. According to estimates, 33% of the power served is not paid for.
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http://www.elnuevodiario.com.do/app/article.aspx?id=386370