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No quick fix to Dominican Republic’s energy woes

Washington.- (listin.com.do).- There’re won’t be an immediate fix to the energy sector’s crisis unless the electricity production base is changed and the billing problem is decisively dealt with, American Development Bank (IDB) and World Bank (WB) technicians warned Dominican business leaders Tuesday.

Rafael Rodriguez Balza, David Lewis and Jorge Mercado, of the IDB, and David Reinsten,  of the WB, agree that no sector can survive losing so much and profiting so little, resulting from a lack of payment and the government subsidy.

The technicians, who noted that their opinions are personal, spoke in a panel as part of the activities of Dominican Week in the USA 2013, hosted by Dominican Republic’s American Chamber of Commerce (AmCham-DR).

Mercado said there’s no signal from president Danilo Medina’s administration as to where the electricity sector needs to go, and called the replacement of the management left by the previous administration in the State-owned Electric Utility (CDEEE ) and electricity distributors (Edes) a “blunder.”

“To train managers and then replace them is a waste of resources,” affirmed Alfonseca, who warned that if the issue of the billing isn’t dealt with, the country’s energy problem has no solution.

“The bottom line is that regardless of state or private ownership, the managers must be paid incentives. If you provide incentive to reduce losses, more will be achieved in that regard,” Mercado said.

And while Reinstein hails the institutionalism he affirms the sector has accomplished, he said he regrets that none of the entities fulfill their duties. “In theory it’s very nice but in practice these institutions aren’t allowed to act from above, despite the existence of all the conditions to have a modern electrical system.”

Source: DT

Category: DR News |

  1. Samson

    Not sure what we are being told here. The big issue is getting paid – hard to disagree with that but then they go on to say that unless managers are given incentives, they will not achieve the required savings. That rather suggests that they are not doing the job that they are there for. Confusing.

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Last updated December 5, 2016 at 9:13 AM
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