El Siglo reports that the Dominican Electricity Corporation (CDE) opposes that Unión Fenosa place on the market 190 megawatts that would be generated later this year by a 102.5 megawatt plant in Palamara (Km. 22 of the Duarte Highway and ready by November) and a 87.5 megawatt plant in front of the La Vega (ready for November) free zone. The plants were an investment of US$120 million. El Siglo newspaper says that the CDE’s opposition is on grounds that Unión Fenosa won the tender for the distribution of two thirds of total power supply. The privatization contract establishes that a single company, or its affiliates, cannot generate more than 15% of the total demand. CDE says that by contract Unión Fenosa is obliged to sell its power to the Dominican state utility. El Siglo also points out that the company that has the other third of the distribution of power in the DR, AES also has plans to sell power on the market. AES has plans for the construction of a 300-megawatt plant in Andrés, Boca Chica. Felix Otto Hidalgo, spokesman for the company, said that by the time that plant is operational demand will be high enough so they fall within the 15% stipulation. He forecast that demand will be at 2,000 megawatts by next year. Demand today is estimated at 1,500 megawatts.
