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NewsWhore
07-18-2011, 05:30 PM
A report in today's Listin Diario reveals that 1.56 million households in the Dominican Republic (32%) do not have electricity meters to measure their power consumption. The report, by experts Edwin Guerra and Bernardo Castellanos reveals that the main problem causing the deficit of the distribution companies is in the cross subsidies that penalize paying customers, in other words the large number of households and power-consuming workshops, beauty salons and other businesses that operate in the backyards of households in low-income areas where electricity usage is not billed. The second reason for the deficit is in the technical losses (24%) and the third reason is the inefficiencies in collection of the bills (16%).

The study is titled, "A New Paradigm for the Electricity Sector and Practical Proposals for Solutions". Guerra says that it has been said that fraud and a widespread culture of non-payment are the leading causes of the increase in losses suffered by the industry that reached 41.4% of the energy served by the EDES in 2010. But he said fraud accounted for barely 25% of the losses.

The experts point out that 49% of paying consumers are on low fixed-rate plans, and even then 80% of them do not pay their bills. The consumers argue the long blackouts justify non-payment.

Listin Diario reports that the figures show that political patronage has prevailed for more than 40 years affecting what should be a profitable business, regardless whether it is privatized or under government management.

More... (http://www.dr1.com/index.html#5)