Electricity price rise in June to relieve US$1,1000 million subsidy.

posted on: Mar 31 2010 10:35 by Royston. Viewed 566 times.


The electricity price hike from June is designed to reflect the actual cost of production in order to bring financial stability to the distribution companies, said Francisco Mendez, Superintendent of Electricity.

Mendez recalled that the Government has had to disburse so far this year some 2,000 million pesos as a subsidy to cover the gap resulting from the rate applied and the actual market costs.

He also indicated that in 2009 the subsidy on the electricity sector exceeded US$1,100 million, which, he said, demonstrates the great economic burden created by keeping prices too low.

However, he clarified that the subsidy through the "Bonoluz". program will be retained to continue helping the most economically deprived households.

Mendez reiterated that the electricity distribution companies (EDES) have to bring to justice, through the Office for Electrical Affairs, users who commit fraud and avoid paying for their electricity.

He said the role of the SIE is to serve as mediator between Edessa and consumers, and that it in no way hinders or influences the regulatory body from punishing violations of the general law of electricity, such as was suggested by Celso Marranzini, executive vice president of the Corporation Dominican Energy Consortium (CDEEE).

Mendez spoke through a press release from the communications manager for the SIE.

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