NewsWhore
10-23-2006, 06:10 PM
Listin Diario is reporting that all the energy companies that are operating under the Madrid Accord are in fact breaking the rules stipulated by the contract, when it comes to the purchase and sale of energy. The paper says that no company has fulfilled its contractual obligations. According to the newspaper, the Itabo, Haina, Dominican Power Partner, Cogentrix, and Union Fenosa energy generators are required to produce 1,360 MW per hour, but they only produce an average of 635.6 MW, for a total deficit of 724.12 MW of power, or 53.2%. Listin is quoting a report released by the state-run Electric Companies (CDEEE).
Diario Libre reports on the way in which the electric companies break the rules by stating that according to the same Madrid Accord, only 80% of energy sales are to be by contracts, with a minimum of 20% bought on the spot market and that to this point in the year the companies have 92.8% of energy by contracts. This limits the spot market, which is supposed to increase competition on the market. Diario Libre reports that EdeNorte contracted 84.5%% of energy, while EdeSur and EdeEste contracted out 93.6 and 99.9%, for an average of 92.8% of contract bought energy. This left only 7.2% to be bought on the spot market.
Meanwhile, the electricity generator EGE-Haina is questioning the sincerity of the new talks on the existing contracts with the generators. According to Diario Libre, the company says that there is "something hidden" in the talks and that the government is trying to "cover the sun with a finger," and, according to a letter written by Mejico Angeles, the Regulatory Affairs director for EGE-Haina, the government is "trying to open the sector for the two coal-fired plants that were recently contracted." Angeles said that his firm has invested $280 million in plant improvements and in increasing the facility's generating capacity. The Haina official said that the blackouts are the result of the losses suffered by the power distributors (EDEs) and that if the state did not have to compensate the high costs of non-payment and electricity theft, the distributors would be in a position to pay for energy and cover the demand.
More... (http://www.dr1.com/index.html#8)
Diario Libre reports on the way in which the electric companies break the rules by stating that according to the same Madrid Accord, only 80% of energy sales are to be by contracts, with a minimum of 20% bought on the spot market and that to this point in the year the companies have 92.8% of energy by contracts. This limits the spot market, which is supposed to increase competition on the market. Diario Libre reports that EdeNorte contracted 84.5%% of energy, while EdeSur and EdeEste contracted out 93.6 and 99.9%, for an average of 92.8% of contract bought energy. This left only 7.2% to be bought on the spot market.
Meanwhile, the electricity generator EGE-Haina is questioning the sincerity of the new talks on the existing contracts with the generators. According to Diario Libre, the company says that there is "something hidden" in the talks and that the government is trying to "cover the sun with a finger," and, according to a letter written by Mejico Angeles, the Regulatory Affairs director for EGE-Haina, the government is "trying to open the sector for the two coal-fired plants that were recently contracted." Angeles said that his firm has invested $280 million in plant improvements and in increasing the facility's generating capacity. The Haina official said that the blackouts are the result of the losses suffered by the power distributors (EDEs) and that if the state did not have to compensate the high costs of non-payment and electricity theft, the distributors would be in a position to pay for energy and cover the demand.
More... (http://www.dr1.com/index.html#8)