It is no secret that the Dominican Republic could use an improved electricity sector, with more consistent service and perhaps, even lower rates. The National Business Council (Conep), under the leadership of Juan Celso Marranzini, has set forth some guidelines for this improvement, Diario Libre reports.
The entity that comprises the majority of Dominican business interests recalls that two years ago an Electricity Pact was signed by business and government. At that time, electricity losses were calculated at slightly over 30%. This means that between generation, transmission, sale, and collection of the money sold, only 70% was paid for. With the signing of the Pact, it was expected that these losses would fall by perhaps 10% or 15%. This has not been the case, and today’s numbers indicate losses of above 40%.
As a result, the Conep has set forth eight guidelines that should be followed to improve the sector greatly. The first proposal is that the electricity distributors reduce their losses for non-payment of electricity delivered.
Another area that will assist in the desired improvement is that of renewable energy, which the Conep notes is expanding at a rapid pace.
However, energy losses via transmission are also an important factor that needed to be addressed.
The Conep used data from a Regional Center for Sustainable Economic Strategies (CREES) study to strengthen their position. This study noted that in the first three quarters of 2023, the electricity distributors (EDEs) lost 42.6%, including transmission losses and electricity sold but not paid for.
In simpler terms, for every 100 gigawatts-hours of energy purchased, the Edes lost 43 GWh. In money, this translates to very close to a billion dollars.
The Conep strategy includes a call to reduce the operating costs of the distributors, often plagued with serious issues of management and over-staffing. The recommendations are also for an increase in the basic electricity rates and an increase in renewable energy without creating threats to the stability of the electricity grid. The recommendations are call for the drafting of an overall plan for the sector and improving electricity distribution. The objective is to reduce losses to 13% reduction over the next four years.
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Diario Libre
26 December 2023