Customers in the Dominican Republic may receive some relief from their high power bills, says Superintendent of Power Julio Cross. Results of a tariffs study conducted by outside consultants indicate that Dominicans are paying more than they should be and Cross is suggesting that bills be reduced by 8-17% this year out of fairness to consumers. PA Consulting, who studied the electrical tariffs from generation to distribution to end consumers, was engaged to investigate the situation, as mandated by Electricity Law 125-01.
The consultants have established that the index used for the Value Added for Distribution (VAD) was one of the highest in all of Latin America. The VAD makes up 30% of the electric bill and is currently marked at US$0.0589 of a dollar. According to Cross, this amount will be reduced by nearly half, to just US$0.03 cents of a dollar. According to Diario Libre newspaper, Cross said that the next big challenge would be to renegotiate the contracts with the electric generators.