A new study conducted by the Regional Center for Sustainable Economic Strategies (CREES) in June 2024 has revealed a concerning trend among the Dominican Republic’s government-owned electricity distribution companies, Edesur, Edeeste, and Edenorte. Despite significant increases in their workforces, these companies have shown a decline in operational efficiency, as reported in 7 Dias.
As of June 2024, the combined staff of the three companies reached 8,350 employees, a 144-person increase compared to the same period in 2023. This growth was primarily driven by EdeNorte, which added 123 new employees, followed by EdeSur with 97. EdeEste, however, managed to reduce its staff by 76 employees during the same period.
To gauge the efficiency of these companies, the study compared the number of employees to the number of customers served. The results were disheartening, with a decline in efficiency from 366 customers per employee in January 2022 to 350 in June 2024, representing a 4.5% decrease. EdeNorte experienced the most significant drop in efficiency at 9.7%, followed by EdeSur at 2.2%, and EdeEste at a more modest 0.2%.
It’s worth noting that in May 2021, the companies embarked on a staff reduction initiative that lasted until October, resulting in a 14.5% decrease in the workforce. This move had a positive impact on efficiency. However, the recent trend of increasing staff numbers has partially reversed these gains.
Given the substantial government subsidies provided to these companies, which amounted to RD$50.6 billion as of July 2024, and considering the advancements in technology and automation, the need for operational optimization and improved efficiency is paramount. The companies must shift their focus towards maximizing resource utilization, prioritizing innovation, and efficient management rather than simply expanding their workforce.
Read more in Spanish:
7 Dias
12 September 2024