AES EdeEste says it has not breached the legal limit placed on authorized generation, as set forth in Electricity Law 125-01, because the company that generates power is a separate entity from AES EdeEste. The law in question specifies that no company may supply more than 15% of the national demand for electric generation. A spokesman for the distributor addressed the story published in Diario Libre yesterday that claimed that an AES affiliate was generating 50% of the supply.
AES’s interpretation of Paragraph I, Article 11 of Law 125-01 is that the legislation prohibits the distributors from owning the generators’ operations. By their understanding, this does not apply if a separate company operates the generation business, regardless of its affiliation to the same parent corporation.
AES EdeEste confirmed that it purchases power from Dominican Partners (the AES Los Minas affiliate), but stated that it also buys power from other generation companies as well. As reported today in Diario Libre, Radhames Segura, the CDEEE administrator, complained that AES is selling power to itself for resale through its affiliate distributor.