Two articles, one in El Caribe and another in Hoy,
\nindicate that the electrical problem will be at the forefront of President
\nMej?a?s visit to Spain. El Caribe says that Ede-Este favors new talks on the
\ncontracts that many feel are too generous to the distributors and energy
\nproviders. The proposal for a second round of talks to rectify the current
\nsituation, which could include vertical integration, has been made by leading
\nexecutives of the Uni?n Fenosa during a recent visit. However, for the changes
\nto come about, including the necessary changes to the contracts, several laws
\nwould have to be amended, including the General Law on Electricity, and the
\ngovernment enterprise capitalization law.
\nMark Tracey, the new head of the Itabo generating facility, rejected any form of
\ngovernment intervention, saying that it would not resolve any of the current
\nproblems.
\nMario M?ndez, the economic editor for Hoy, writes that the 13 September visit of
\nPresident Mej?a to Spain could be of great importance to finding a solution to
\nthe financial crisis affecting the sector. According to his sources, the
\nproblems of the electricity distributors will be a central theme of meetings to
\nbe held with the chief executives of Uni?n Fenosa and Spanish Prime Minister
\nJos? Mar?a Aznar.
\nThere is skepticism regarding this visit, too. As a presidential candidate,
\nMej?a had promised to revise the privatization contracts, including that of the
\nSpanish distributor, signed during the Fern?ndez administration. Despite Uni?n
\nFenosa having been an insider, brought in by the late Balaguer to
\nadministratively counsel the Dominican Electricity Corporation (CDE), the
\ncompany was allowed to bid in the privatization process. Mej?a had promised to
\nchange things in favor of the consumer. But once he traveled to Spain, these
\npromises were soon after abandoned and negotiations again bent in favor of the
\nprivate companies. Moreover, the Madrid Accord, negotiated in that Spanish city
\nduring the present administration is regarded as having accommodated even more
\nthe private companies in detriment of consumers.
\nAccording to these sources, the problems of Ede-Norte and Ede-Este will be
\nbroached from a contractual standpoint, stemming from the letter written by the
\nCDEEE to the IADB, as well as in direct private talks with Uni?n Fenosa
\nexecutives and on a political level during talks with Aznar. These conversations
\nare considered to be central points of the announced trip.<\/p>\n","protected":false},"excerpt":{"rendered":"
Two articles, one in El Caribe and another in Hoy, indicate that the electrical problem will be at the forefront of President Mej?a?s visit to Spain. El Caribe says that Ede-Este favors new talks on the contracts that many feel are too generous to the distributors and energy providers. The proposal for a second round … <\/p>\n