In a press release carried by El Caribe and the Bloomberg
News, Uni?n Fenosa, Spain?s third largest electrical distributor, announced that
it would put up US$187 million in support of Ede-Norte, the power distributor
for the DR?s North Coast. Bloomberg News reports that UF says Ede-Norte has been
seriously affected by the devaluation of the peso. A recent audit showed that
Ede-Norte carries debts for overvalued purchases and loans with Uni?n Fenosa?s
affiliate companies.
The head of the new CDEEE, C?sar S?nchez, said that Ede-Sur, another Union
Fenosa distributor, has local debts that exceed US$40 million. According to the
note in the economic section of El Caribe, the ?57% drop of the Dominican peso?
has seriously affected the electric distributors. The IADB is investigating Ede-Norte
for non-payment of bills owed to the power producers, and into Ede-Sur for the
substandard service offered to its clients. Uni?n Fenosa says it has invested
US$620 million in the Dominican Republic and denies any debts owed to
generators.