A report in El Caribe newspaper states that between the generation stations and the electricity distributors there is a loss of over 40% of the energy produced. According to a note from the Ministry of Energy and Mines, for every 100 units of energy (gigawatts or kilowatts, it makes no difference) some 44% is lost in transmission from the generating station to the electricity distribution companies (EDEs).
The note says that this represents a monetary loss of over US$700 million so far this year.
Common sense indicates that this loss cannot be covered unless the EDEs charge more per kilowatt-hour (Kw/h), because they “bought” 100 units but only received 56, and they have to pay for the 100 that they ordered. It is a loss-loss situation.
The article also explains that there is about a 6% loss in collection of electricity bills in the country. Obviously, this is a situation that needs to be attended to, as per the many recommendations of Celso Marranzini and others, as well as the staff of the Regional Center for Sustainable Economic Strategies (CREES).
The Ministry of Energy and Mines has announced government plans to invest US$750 million in improvements for transmission lines.
Hundreds of thousands who live in rural areas receive power for free. Another hundreds of thousands living in low-income neighborhoods in urban areas pay a fixed amount, regardless of the devices that are used. These are irregularities the new authorities seek to correct to make the system sustainable into the future.
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El Caribe
28 October 2024