NewsWhore
05-12-2009, 06:20 PM
The Fernandez administration is seeking a US$300 million bridge loan with the World Bank to pay arrears to power generators, according to Superintendent of Electricity Francisco Mendez, as reported in Hoy. According to the newspaper, the World Bank estimates the present deficit in the electricity sector at US$700 million. A report presented to business leaders at the Presidential Palace last week said that if the deficit were maintained, consumers would suffer an 18-40% increase in blackouts. The report advocates a repeat of the solution imposed by the government over the years: increase the rates for clients who pay for the service.
The report focuses on three dilemmas: To keep the present rates and prevent blackouts would affect fiscal sustainability; maintain the present level of tariffs and taxes would increase blackouts, and ensure fiscal sustainability and avoid blackouts by increasing rates and losses.
The report presented by the state electricity sector acknowledges deficient management of power distributors, 30% of power distributed to non-paying consumers, low level of collections of electricity billed, rates frozen since mid 2006 that do not cover present costs, non-focalized subsidies, incomplete implementation of the strengthening of electric sector institutions, and deficiencies in planning in the sector. According to the report, only 38% of clients pay what they are billed, 25% steal the service, and 22% are served power at fixed rates under the PRA, where losses are estimated at 90%.
Blackouts have increased because of the arrears the government has with the power generators. Hoy reports the accumulated debt is at US$252 million, resulting in government rationing of the service.
Listin Diario reports that as of Monday, 11 May 1,445 megawatts were on line, when demand is 1,935 megawatts, for a 25% deficit. Some areas are reporting 12-hour blackouts.
Local businesspeople and several consulting reports contracted by the government itself for years have emphasized the need for politics to be removed from the management of the electricity sector.
Celso Marranzini, former president of the National Council of Business says the continuing power crisis is a problem of planning, collections, financing and current spending, as reported in Hoy. He advocates the installation of meters. "There is no business in the world where you sell 100% and only collect 50% and can survive," he told Hoy. "The CDEEE has been, unfurtonately, a place for jobs for politicians. He remarked how the CDEEE payroll has increased from RD$39 million in 2004 to RD$400 million in 2008. It is a political booty," he explains.
He emphasizes that the DR cannot continue "with that luxury."
More... (http://www.dr1.com/index.html#3)
The report focuses on three dilemmas: To keep the present rates and prevent blackouts would affect fiscal sustainability; maintain the present level of tariffs and taxes would increase blackouts, and ensure fiscal sustainability and avoid blackouts by increasing rates and losses.
The report presented by the state electricity sector acknowledges deficient management of power distributors, 30% of power distributed to non-paying consumers, low level of collections of electricity billed, rates frozen since mid 2006 that do not cover present costs, non-focalized subsidies, incomplete implementation of the strengthening of electric sector institutions, and deficiencies in planning in the sector. According to the report, only 38% of clients pay what they are billed, 25% steal the service, and 22% are served power at fixed rates under the PRA, where losses are estimated at 90%.
Blackouts have increased because of the arrears the government has with the power generators. Hoy reports the accumulated debt is at US$252 million, resulting in government rationing of the service.
Listin Diario reports that as of Monday, 11 May 1,445 megawatts were on line, when demand is 1,935 megawatts, for a 25% deficit. Some areas are reporting 12-hour blackouts.
Local businesspeople and several consulting reports contracted by the government itself for years have emphasized the need for politics to be removed from the management of the electricity sector.
Celso Marranzini, former president of the National Council of Business says the continuing power crisis is a problem of planning, collections, financing and current spending, as reported in Hoy. He advocates the installation of meters. "There is no business in the world where you sell 100% and only collect 50% and can survive," he told Hoy. "The CDEEE has been, unfurtonately, a place for jobs for politicians. He remarked how the CDEEE payroll has increased from RD$39 million in 2004 to RD$400 million in 2008. It is a political booty," he explains.
He emphasizes that the DR cannot continue "with that luxury."
More... (http://www.dr1.com/index.html#3)