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View Full Version : SIE wants to tax non-regulated users



NewsWhore
10-02-2006, 05:30 PM
Electricity Superintendent Francisco Mendez has told a television audience that if the Superintendent of Electricity (SIE) were to apply the letter of the law, the increase of non-regulated electricity users purchasing current directly from the Independent Power Providers (IPPs) would precipitate the collapse of the entire system. Mendez accused the private sector of trying to bring about such a collapse by insisting that the law should be observed and that electricity users in the 200-kilowatt range needed to be provided with non-regulated status, and thus removing them from the electricity distributors' client lists. According to El Caribe, Mendez said that he felt that any non-regulated client should at least pay VAT on electricity (16%) as a sort of contribution to the system and to assist in the recovery efforts. The law exempts electricity charges from paying ITBIS.
He added that when Elena Viyella de Paliza, the president of business association CONEP, demands the application of the provisions of the General Law on Electricity as a means of solving the energy crisis, what she is really asking for is non-regulated status for clients who use 200 kilowatts or more. In such a case, this would cause the energy provided to the poor to triple in cost, according to Mendez, because collections at the electricity distributors would suffer a steep decline. Mendez said that instead of the current RD$900 million in energy subsidies now being spent, the government would have to come up with at least RD$2.0 billion.

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