NewsWhore
09-10-2010, 01:00 PM
The Fernandez administration has nominated three foreign managers to serve at the helm of the three power distribution companies. The CDEEE explained the changes were part of agreements with the Inter-American Development Bank and the World Bank that required the three foreign electricity specialists take charge in order to authorize disbursement of US$200 million in funds for the electricity sector. Experts have long explained that the main reason why the DR's electricity system is so deficient is that political decisions have always prevailed.
A report in Hoy, however, says that changing the managers will not solve the problem. It argues that the problem is in the high prices for which the generators sell power and in the distribution monopoly. Economist Arturo Martinez Moya told Hoy that the switch "is more of the same." He said the horizontal electrical system model has collapsed and called for a model where "whoever generates collects for the service." He advocates eliminating the distributors that he says just serve as intermediaries.
Engineer Milton Morrison says that the companies need to be privatized and the government monopoly eliminated when it comes to distribution. He recommended that several companies should be able to distribute power so there is competition in the market.
Architect Leopoldo Espaillat Nanita says that the failure in the system is due to power generation contracts that have "godfathers" in the World Bank and the International Monetary Fund.
Yesterday, President Leonel Fernandez announced the appointment of Marcelo Rogelio Silva Iribarne, Eduardo Saavedra Pizarro and Francisco Leiva Landabur to head the three government-owned distributors. Earlier this week, Celso Marranzini, executive vice president of the Public Electricity Corporation, announced that the distributors had performed well below expectations.
More... (http://www.dr1.com/index.html#3)
A report in Hoy, however, says that changing the managers will not solve the problem. It argues that the problem is in the high prices for which the generators sell power and in the distribution monopoly. Economist Arturo Martinez Moya told Hoy that the switch "is more of the same." He said the horizontal electrical system model has collapsed and called for a model where "whoever generates collects for the service." He advocates eliminating the distributors that he says just serve as intermediaries.
Engineer Milton Morrison says that the companies need to be privatized and the government monopoly eliminated when it comes to distribution. He recommended that several companies should be able to distribute power so there is competition in the market.
Architect Leopoldo Espaillat Nanita says that the failure in the system is due to power generation contracts that have "godfathers" in the World Bank and the International Monetary Fund.
Yesterday, President Leonel Fernandez announced the appointment of Marcelo Rogelio Silva Iribarne, Eduardo Saavedra Pizarro and Francisco Leiva Landabur to head the three government-owned distributors. Earlier this week, Celso Marranzini, executive vice president of the Public Electricity Corporation, announced that the distributors had performed well below expectations.
More... (http://www.dr1.com/index.html#3)