Dominican Electricity rates up again, again!

The Superintendence of Energy announced a second electricity tariff increase yesterday. On 2 June the increase was 6.4% and beginning yesterday they once more increased by 5.7% on average the price of a kilowatt/hour that belongs to tariffs classified as BTS1, BTS2, BTH, MTD1 and MTH.

The authorities argue that fuel oil number 6 increased 21.9% in price, going from US$42.8619 Bbl., to US$52.2375 Bbl; Natural Gas fell in price from US$4.037 MMBTU to US$3.597 MMBTU, while coal prices fell by 47%, going from US$131.12 per ton to US$69.00 per ton. On the other hand, the monthly average exchange rate went from RD$36.03 to RD$36.00 to the dollar. As a result of the variation cited, the indexed tariff for the month of July experienced an increase of 0.14%.

While electricity rates had been fixed, now the Superintendence has pegged them to variables.
The new rate increases, could mean an additional 22% rate increases for households consuming up to 700 kWh.
Blackouts continued in Santo Domingo, nevertheless, despite the rate increases.
For June, the Superintendence had already ordered increases of 12, 17, 22 and 2.2% on the household tariffs.
As per Resolution SIE-47-2009, the new tariffs are:
0-200 kWh: RD$3.70 up from RD$3.50
201-300 kWh: RD$5.81 up from RD$5.50
700 kWh: RD$9.26 from RD$8.76
Commercial and industrial sectors:
Rates have increased to RD$4.98 from RD$4.71, RD$7.92 from RD$6.80 and RD$9.42 from RD$8.91 and RD$9.62 from RD$9.10.


Note from Dominican Watchdog:

Somebody of course has to pay for the "Report opens Dominican Energy czar’s can of worms" as mentioned in Yesterdays article, and since 2 million are not paying for the electricity the consume, the prices are again going up. This makes DR one of the most expensive countries in the 3rd world where to live or operate factories!

Here are the numbers:

2/3 of houses have no meters
Of the 2,730,285 houses counted in the country two years ago, 47% (1,117,789) did not have an electricity meter, while 33.3% (790,212) have a meter and 19.5% (462,284) pay a fixed rate. In other words, 66% of houses do not have meters.
Diario Libre reports that the data obtained from the National Survey of Income and Expenses in the Home 2007, carried out by the National Statistics Office (ONE), says that in individual houses (1,834,201) 574,426 have meters, and 889,936 do not.
Out of more than 257,000 rooms, shacks and back-yard housing units, some 48,000 have meters (18.6%), and in barracks (generally built for flood victims or families displaced by hurricanes) there are only 1,472 meters (11.8%).
Only 6.3% of the houses (160,189) use other sources of energy. According to a study by the National Business Council (CONEP) last May, each consumer or group of consumers should have an electric meter and pay for the energy consumed. CONEP points out that to donate or subsidize energy without any metering or limit is to convert an expensive service into a free service.


Go back | Date: 02 Jul 2009
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