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NewsWhore
09-07-2007, 03:21 PM
The president of the National Association of Young Entrepreneurs(ANJE), Joel Santos is calling on the government to involve private business in the preparation of the ruling for the application of the recently modified General Electricity Law. El Nuevo Diario reports that Santos also called on the government to fulfill the Freedom to Public Information Law 200-04 and its ruling. Law 200-04 establishes that the ruling needs to be submitted to public scrutiny.
The business sector has complained that the CDEEE seeks to prepare the ruling unilaterally, without the active participation of the business sector. The businesses challenge the fact that the government continues to subsidize consumers who do not pay for the service, and the power distribution companies have not significantly increased the number of paying clients. Instead, users who pay for the service are constantly levied with increases. Santos said that according to reports, the government subsidies will be RD$200 million over the level established with the IMF, which he says creates a distortion in the market.
Santos criticized that sectors in government are trying to limit the participation of the business community in matters that directly affect their production costs. The new law establishes a 10% surcharge on power purchased directly from the generators by non-regulated users as well as raising the levels at which large companies can purchase directly from the generators, bypassing the power distribution companies.
The Association of Industries of the Dominican Republic (AIRD) says that the government wants to apply the 10% surcharge to companies that are already authorized to purchase directly from the generators.
The AIRD says the charge should only apply to companies that become non-regulated users now, not those that already are. They explain the new surcharge would have a very negative effect on manufacturing in the DR, which they say is already stagnated, as reported in Hoy.
Central Bank statistics indicate the industrial sector grew by only 0.3% in the first half of the year.
AIRD explained that in Costa Rica, industries have access to power at US$0.04 kWh, while in the DR, the cost is US$0.11 kWh.

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