President Luis Abinader ordered a freeze on the increases in power tariffs last Wednesday, 20 July 2022. Days before, Listin Diario had reported that while consumers were subject to major increases in power rates, the staff at the Superintendency of Electricity were also getting major increases, but to their wages.
Protests over the hikes in electricity rates coinciding with hikes in wages made headlines. After, the Superintendency of Electricity set back the most recent increase in wages of the head and board members, not so the employees that got to keep their wage increases. Thousands of people have been appointed at the government-operated electricity entities following the change of government.
The Superintendent of Electricity (SIE) admitted to reporters that its employees had, indeed, received a nice pay raise, but that this was done last September. The 9.5% pay hike went into effect in September, 2021. Shortly after this, in October 2021, the SIE announced the program to remove government subsidies on electricity, and in November, January and April everyone’s electricity bill was significantly higher, causing public outbursts.
The SIE noted that its funds come from a 1% fee on all electricity generated, transmitted and distributed in the Dominican Republic. In addition, a press release from the entity argued it is not governed by the regulations of the public administration. Its salaries are set following the market conditions of private sector high-level executive positions. Much of the public outbursts came as salaries of a million pesos were revealed last week.
Listin Diario reported that the wage increases to government electricity staff did not only benefit the bosses, but lower echelons, too.
In the last few months, increases were made in the electricity bill, causing discontent in wide sectors of the population.
Listin Diario reported that between the end of 2021 and the course of July 2022, power consumers on the national electricity grid have been burdened with at least four increases in the rates of the electricity they consume.
Last year the Superintendency of Electricity (SIE) had announced the “gradual” dismantling of the subsidy. The dismantling of the subsidy would coincide with a progressive economic increase in the payroll at the SIE.
According to the institution’s personnel compensation reports, the more than 500 permanent employees distributed in the different branches benefited from wage increases in September of 2021 and two months later the salaries increased again.
Listin Diario reported that the head of the SIE, Rafael Anibal Velazco Espaillat began his term as superintendent, on 20 August 2020, with a salary remuneration of RD$596,546. He would increase this first to RD$653,219, and then to RD$751,201.
The also president of the administrative council of the referred entity, received a wage increase of RD$154,655 over a period of 11 months, in the same period the salaries of the members of the council, Diógenes Rodríguez Grullón and Aura Mireya Caraballo Castillo, were increased by 115,733 pesos.
Both Rodríguez Grullón and Caraballo Castillo went from RD$ 446,412 to RD$ 488,822 and then to 562,145 pesos.
Technically, the raise increases violate the law. The law states that no government officer should receive more than the RD$450,000 allotted to President Luis Abinader (Law 105-13 on government salary regulations and the Dominican Constitution.
Listin Diario also points out that Article 140 of the Constitution, on the regulation of salary increases, provides that “no public institution or autonomous entity that manages public funds shall establish norms or provisions tending to increase the remuneration or benefits of its incumbents or directors, except for a period after that in which they were elected or appointed. Failure to comply with this provision shall be sanctioned in accordance with the law.”
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25 July 2022