In the dark

[NewsWhore]

One of the biggest problems plaguing the energy sector is the lack of infrastructure needed to resolve the problem, and according to a report in Diario Libre the Madrid Accord only contribute to the continued energy crisis. The newspaper reports that the Madrid Accords call for the buying and selling of 1,290MW of energy from the companies EdeNorte, EdeSur and EdeEste. Of those 1,290MW, EGE-Haina and EGE-Itabo have contracts to sell 350MW and 300MW. However, both Haina and Itabo have the resources to provide those quantities from their own energy plants, but instead what they do is buy energy on the spot market for a cheaper price. This allows both companies to continue making profits without investing in infrastructure. They keep energy generators switched off, sell cheap energy, and still find a way to avoid breaking the country's energy laws. The irony of the situation is that most of the energy bought on the spot market is produced by the State Run Electric Companies (CDEEE), and since the energy distributors have been late with their payments, it creates losses and accumulated debt for the government. CDEEE vice president Radhames Segura is quoted in Hoy newspaper as saying that the Madrid Accords were a bad business move by the government because since the signing the energy companies have benefited and grown substantially. Segura also denounced the way in which other companies are taking advantage of the situation and commented on their "irregular involvement" in the energy market. He said that aside from looking to lower prices with the renegotiations of the Accords, the government is seeking to clean out the wholesaler from the market.

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