Government will not increase the price of electricity

If the obstacle that become the seventh and eighth revisions to the agreement stand by with the International Monetary Fund (IMF), paralyzed since the middle of last year, is the Government's refusal to increase the price of electricity, then continue to the dam in the negotiations between the Dominican authorities and technicians of the multilateral financial institution.

The Minister of economy, planning and development, Themistocles Montás, confirmed yesterday that the electricity rate increase won't; that this task will correspond to the next authorities that assume next August. "There is no chance," the official said referring to the increase proposed by the IMF and the financial agreement maintains in "stand by".

The agreement with the Fund was approved on November 9, 2009 for a total amount of US$ 1,740 million, but has been affected by the burden of the deficit of the electricity sector, which is why the u000aGovernment has had to request exemptions.

Montas said that the proposal of the International Monetary Fund to increase gradually the electricity tariff is what is discussed with the Agency and that it has not allowed the joint knowledge of the seventh and eighth revisions of the stand-by for two years which is scheduled agreement that ends next month.

In December 2011, the Governor of the Central Bank, Héctor Valdez Albizu, said he agreed with an extension of the agreement. This pronouncement were joined by major business organizations, among which were the National Council of private enterprise (Conep), the National Association of young entrepreneurs (ANJE) and the Association of industrial enterprises of Herrera, among others. You Montas considered that rather than increasing the price of the kilowatt, increased almost 20% a year ago, the task is persist in enhancing further good administration in the distribution of u000aelectricity regenteadas by technicians hired by the Dominican Corporation of State electric companies (CDEEE).

"At least during this electoral period no possibility to increase the electricity tariff." It is a decision of the Government of President Leonel Fernandez. "This should be a decision by the new Government," reiterated Montas.

He recalled that the electricity sector is the most affecting tax revenue because in 2010 paid oil to US$ 66.3 barrel and 2011 reached US$ 94, which fired than budgeted for electricity of $350 million to $630 million and then to more than US$ 900 million.

The Minister denied versions that the country's immediate budgetary future is so uncertain that the Government to assume next August only provides funds to pay the payroll of State personnel and fixed expenses.

( ) Environment financial and economic world
forecast

Themistocles u000aYou Montas, who was interviewed in the programme ' daily', Digital 15, recalled that it should not lose sight that the country takes place in an international economic and financial situation so delicate that currently no one knows what will end up happening in Europe, under forecasts of recession, so it's up to United States.

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