Self-generation costs billions

[NewsWhore]

A report by the World Bank estimates that the level of electricity delivered by privately owned, small generators totaled 2.71 giga-watts in 2001. This represents 22% of all electricity generated in the Dominican Republic at a time when electricity provision was considered to be "stable". The majority of the electricity came from "emergency" generators or power inverters that run off batteries. The report, quoted in Listin Diario, says that the crisis was so severe that businesses and private homes spent an estimated US$37 million on self-generation, the equivalent of RD$1.24 billion pesos each month. The report did not discount the possibility that the figure would continue to grow as the electricity service continued to deteriorate and petroleum prices continued to rise. Apparently, the source of greatest concern for the World Bank is the fact that this sum of approximately US$444 million is nearly the equivalent of what the government spends on the electricity subsidy the generators (US$520 million in 2006). A further RD$884 million pesos has to be added, since this is the amount that the Superintendent of Electricity provides for a subsidy to the electricity distributors that provide service to the poorer barrios. The World Bank described the situation as "alarming."

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