NewsWhore
07-16-2010, 03:50 PM
Inefficiencies on the part of the power distributors, not low rates are behind the financial crisis affecting the electric sector, says engineer Antonio Almonte. He says that at the current rates the companies should operate with a surplus instead of deficits.
Almonte, who is the director of the PRD's Energy Commission, was responding to statements made by Celso Marranzini, executive vice-president of the Public Electricity Corporation (CDEEE), and he pointed out that between January and May this year the generators supplied the distributors with 4.432 gigawatt/hours of electricity at a total invoice of US$636.9 million. He said that if the distributors had been able to bill and collect even 85% of this - accepting 15% in losses - they would have collected US$712.1 million, aside from their income for fixed charges. This is US$112 more than the bill from the generators.
Almonte attributed the collapse of the distributors to long-standing arrears in investments in lines, transformers, meters, vehicles, customer service booths, human resources and client education.
He also pointed out that these problems, combined with what he described as "unconscionable contracts" with entities such as Smith-Enron in Puerto Plata and Cogentrix in San Pedro de Macoris, only make the situation worse.
He warned that the administration was running out of ways to use Petrocaribe and governmental transfers to pay the subsidy. This, he said, is the reason behind the media campaign that seeks to prepare the public for an increase in electricity rates again.
Throughout the past 30 years, the government has just resorted to increasing electricity rates for consumers who traditionally pay for the service, instead of improving the power distributors' efficiency. Another major problem affecting the sector is the highly unfavorable terms the government and previous power administrations have accepted on many contracts negotiated with power generators.
More... (http://www.dr1.com/index.html#5)
Almonte, who is the director of the PRD's Energy Commission, was responding to statements made by Celso Marranzini, executive vice-president of the Public Electricity Corporation (CDEEE), and he pointed out that between January and May this year the generators supplied the distributors with 4.432 gigawatt/hours of electricity at a total invoice of US$636.9 million. He said that if the distributors had been able to bill and collect even 85% of this - accepting 15% in losses - they would have collected US$712.1 million, aside from their income for fixed charges. This is US$112 more than the bill from the generators.
Almonte attributed the collapse of the distributors to long-standing arrears in investments in lines, transformers, meters, vehicles, customer service booths, human resources and client education.
He also pointed out that these problems, combined with what he described as "unconscionable contracts" with entities such as Smith-Enron in Puerto Plata and Cogentrix in San Pedro de Macoris, only make the situation worse.
He warned that the administration was running out of ways to use Petrocaribe and governmental transfers to pay the subsidy. This, he said, is the reason behind the media campaign that seeks to prepare the public for an increase in electricity rates again.
Throughout the past 30 years, the government has just resorted to increasing electricity rates for consumers who traditionally pay for the service, instead of improving the power distributors' efficiency. Another major problem affecting the sector is the highly unfavorable terms the government and previous power administrations have accepted on many contracts negotiated with power generators.
More... (http://www.dr1.com/index.html#5)