CDEEE signs contract to buy cheaper energy

posted on: Mar 17 2010 13:24 by Royston. Viewed 655 times.


The Dominican Corporation of State Electrical Companies (CDEEE),  yesterday signed a purchase contract for 288 gigawatts of electricity from Grupo AES Dominicana on behalf of Edenorte and Edesur, the distributors in the North and South respectively. This agreement will create a saving of US$17.8 million a year to the state. The contract does not include the distributor in  the East (Edeeste).

The cost savings are possible because Grupo AES Dominicana will be generating power from natural gas, a cheaper fuel than that used by most generators in the country.

The announcement was made yesterday by executive vice president of the Dominican Corporation of State Electrical Companies (CDEEE), Celso Marranzini and AES Group President, Marco de la Rosa, after signing the contract for the purchase of energy.

The transaction will represent a saving for both distributors of 3.6 cents per kilowatt hour on average compared to the prices which currently are on the spot market for immediate delivery, explained Marranzini and De la Rosa at a news conference at headquarters of CDEEE.

The spot market is selling at 15 cents per kilowatt, on average, while through this contract, Edesur and Edenorte will pay nine cents, said De la Rosa.

An essence of the contract is �timely� payments of invoices to ensure a continuous supply.

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