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Temistocles Montas talks to reporters today. Photo elnuevodiaro.com.do
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SANTO DOMINGO. – Two senior government officials on Monday justified the higher electric bill, and cautioned that failure to cover the sector’s US$300 million deficit this year would condemn the country to permanent blackouts.

The Minister of the Economy, Temístocles Montas also noted that around half of Dominican Republic’s 2.1 million houses have no meters and so don’t pay the service.

 He said to say the country has the most expensive energy in the entire region is to deceive the population, and noted that when oil prices were rising, the cost per kilowatt-hour was 18 U.S. cents, whereas in Puerto Rico it was 35 U.S. cents.

Montas said since the energy sector is expected to demand US$700 million, the US$400 million subsidy allocated in this year’s Budget won’t cover the deficit, pushing it to US$300 million.

Meanwhile, the Executive vice-president of the State-owned electricity companies CDEEE, Radhamés Segura, said the increase in the electrical results from the cost  of generation, the losses of the distributors, and the pressure by international economic organisms, for which he didn’t discard another increase this very year.

He added that the agreement to acquire the distributor EdeEste isn’t about a purchase but instead the transfer of its shares and management to the government.

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COMMENTS
28 comment(s)
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Written by: FredCDobbs, 1 Jun 2009 2:01 PM
From: Mexico, Sierra Madre
the stupid game goes on and on and the losers are the public again and again
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Written by: josean, 1 Jun 2009 2:41 PM
From: United States
Electricity is not a priority; lets build more METROS!
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Written by: cad2260, 1 Jun 2009 2:42 PM
From: Dominican Republic, Bronxs NY
How can you compare P.R. to DR rates. P.R. makes US Dollar while DR is peso.it not fair to compare these prices. why not say that DR pays 6.30 peso per watts instead of .18 US cents.
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Written by: Bailarin, 1 Jun 2009 2:51 PM
From: Dominican Republic
Its still cheaper to burn thier candles at both ends !
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Written by: gmiller261, 1 Jun 2009 3:34 PM
From: United States

You MORONS !

What embarrasses these people?

And they’ll try and solve the corruption with more corruption paying for the loss of $$$ from the first corruption.

Are there any Dominicans willing to standup and say NO MORE? Or are you a bunch of sheep being led to the slaughter?

If they let ex-pats vote I would become a citizen just to vote these guys out.
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Written by: josean, 1 Jun 2009 3:36 PM
From: United States
gmiller261,


You are insulting Morons.
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Written by: NegroDeLaBachata, 1 Jun 2009 3:42 PM
From: Germany, Stuttgart
This is the result of lack of political will....It makes no sense that the average Dominican household doesn't have power 24 hours a day.....It makes no sense that some Dominicans don't even have electricity. Where is the executive leadership the RD needs? Look at the current condition of the Dominican educational system.....same illness.....lack of political will. I hope that one day some of the most talented, educated and driven Dominicans of the diaspora return to Quisquella and provide genuine leadership with the welfare of La Dominicana in mind. Form new political parties....challenge the powers that be.....start national televised debates....go grass root campaigning.....change the political culture of the country.......create a transparent and accountable government.....What continues to happen in the RD presently just makes me ill. Where is the gov's love and concern for the people as a whole. Leadership is absent.
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Written by: gmiller261, 1 Jun 2009 3:51 PM
From: United States
This is a lack of poor education and moral fiber. They act as though they have the mentality of the 3rd grader.

There is not one person in charge in the whole of DR that does feel they are entitled to corruption and immoral behavior.

This mentality has been inbred for centuries.

I am sickened by how many times these, so called, people in charge will regurgitate the same lies over and over. They are shameless, but when they look in the mirror they see this macho cool dude.
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Written by: juanb, 1 Jun 2009 3:54 PM
From: Dominican Republic
The blackouts are already here.
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Written by: Juango, 1 Jun 2009 4:03 PM
From: United States, far S. Florida (formerly Santo Domingo)
Why invest in a sinking ship ! Let us all, sit back and watch the "extranjeros" get ripped off and subsequently, get tied up in legal cases that will milk them further of their funds (nest eggs). Look at Cap Cana, Punta Perla, and all of Juan Dolio as proof. Samana is now a 24 hour electrical service area. They CDEE E does not have a daily average electrical production rate that will allow this, but that doesn't martter, the Politicos will make it so! WTF !
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Written by: antonioj, 1 Jun 2009 4:06 PM
From: Canada, Oakville on terra firma
and the subway will have mules push it... or should it be exempted.
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Written by: gmiller261, 1 Jun 2009 4:31 PM
From: United States
Whoa, forget the ex-pats. There are not that many.

The 'rich' Dominicans will be devoured if they are made to pay for electricity.

I'd go solar/wind. It would be a 6 year payback at .27 a kilowatt
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Written by: josean, 1 Jun 2009 4:39 PM
From: United States
antonioj,

Leave the subway alone that is my obsession!

Long Live Our Dear Leader Lie-onel Fernandez and Our Fatherland METROLANDIA!

It has like a nice North Korean ring to it!
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Written by: Juango, 1 Jun 2009 4:50 PM
From: United States, far S. Florida (formerly Santo Domingo)
Sorry gmiller, I was not clear in my prior post above. I was not refering to electrical service regarding the "extranjeros". Only a reference to them purchasing RE Properties in the DR as Investments (Homes/Villa/Condos/Hotels/Resorts, etc.). You are correct, many more rich Dominicanos will be affected by the new rates. It will be extremely expensive to manitain some of the large homes in SD and Santiago. Most rich consume over 1000 kwh/month in their homes and will now pay through the nose for their creature comforts. Airco, pools, hot tubs, large fridges etc.
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Written by: BLANCO, 1 Jun 2009 5:03 PM
From: Dominican Republic
Are there any Dominicans willing to standup and say NO MORE? Or are you a bunch of sheep being led to the slaughter?

The ones that should lost their balls years ago in lieu of rum, beer, and their so-called machosim
The ones that Will ..have no ballls And can't be shot


RISE UP WOMEN and march...your children arebeing denied a future
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Written by: Gringo_1, 1 Jun 2009 5:23 PM
From: Dominican Republic, Maimon (Bonao)
Josean

This is for you buddy! From DR1

2. Metro versus electricity
He didn't say anything new, but the fact that it came from Jose Miguel Bonetti of Mercasid, one of the leading companies and a long-time supporter of the Fernandez administration, and that the comment was made in the presence of President Leonel Fernandez and First Lady Margarita Cedeno on occasion of the 47th anniversary of the Dominican Republic Industries Association (AIRD), made all the difference. Bonetti addressed those present, and at one point commented: "We can't transport ourselves in 21st century equipment like metros, when young people in most households in the Dominican Republic have to study by candlelight. It is time to change the vision in search of solutions," he said.
In his talk, Bonetti pointed out that the country has one of the worst power services in the world with blackouts, high costs, an excessive and unnecessary government bureaucracy, a large part of the population that does not pay
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Written by: Gringo_1, 1 Jun 2009 5:24 PM
From: Dominican Republic, Maimon (Bonao)
and losses on transmission lines of power supplied. He said that today taxpayers make hefty contributions to "a parasitical bureaucracy at Edenorte, Edesur and in the ever-increasing new departments of the government energy bureaucracy", as reported in El Caribe. He described the nationalization of the power distributors Edesur and Edenorte seven years ago as "unfortunate" and said that one only has to compare the number of employees before and after the government takeover.
Bonetti recommended that the government get out of the business of power production and distribution in a transparent way. He argued that the government has failed badly in these, obliging the population to pay the price of inefficiency in taxes and inflation, as reported in Hoy.
He said the business sector is concerned about the recent US$26 million purchase of the AES Ede-Este power distributor by the state.
In his opinion, the energy issue is the greatest challenge for manufacturers, and the Dominican peop
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Written by: josean, 1 Jun 2009 5:26 PM
From: United States
Thank you Gringo_1 !
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Written by: BASTA, 1 Jun 2009 5:29 PM
From: Dominican Republic, SPM
NegroDeLaBachata, You got my Vote

dominipapi you back from the grave boy
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Written by: josean, 1 Jun 2009 5:38 PM
From: United States
Add to this more taxes:

DR1

Where the new taxes will go

Claudio Acosta, a page two columnist in Hoy newspaper, has criticized the government's stated intention to increase taxes in order to fulfill the law that calls for the government to make available 4% of the National Budget for educational needs.
He speculates that the new tax money would be used for informal payrolls in government departments, thousands of consuls and vice consuls appointed where they are not needed, to purchase SUVs for high up and lower down government officials, to remodel and redecorate government offices and departments, to hold workshops where everyone agrees on the problems, to organize large missions abroad on first class tickets to attend summits or any global meeting while staying at luxury hotels, to improve the quality of life for the privileged citizens who belong to what one day (hoping it will not take 100 years) will be known as the "comesolismo gobernante" or eatalonegovernment.


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Written by: josean, 1 Jun 2009 5:39 PM
From: United States

To contact the author with your opinions, email Claudio Acosta at c.acosta@hoy.com.do
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Written by: josean, 1 Jun 2009 5:42 PM
From: United States
Source DR1

Electricity tariff increases

The Superintendence of Electricity has authorized a 6.4% increase in power rates this month. As reported in Listin Diario, this is the first of two hikes that will increase the rate by 12% by July. This means that as of June power will cost:
0-200 kilowatts from RD$3.12 to RD$3.32
201-300 kilowatts from RD$4.71 to RD$5.01
401-700 kilowatts from RD$7 to RD$7.45.
700 kilowatts+ RD$9.18.
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Written by: VeronicaDR, 1 Jun 2009 6:04 PM
From: United States
More of the smoke and mirrors games. Too many hands looking for their corruption money and now they expect the public to pay through rate increases. As people have already said we need a grass roots movement to eliminate this corruption through any means.

The blackouts will continue and all that will change is more money being taken from the poorest people and given to the corrupt rich.

We need someone to take control of this mess.

As I keep saying the number one problem with the DR is corruption. If we can get this problem better under control the country will grow by leaps and bounds.
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Written by: josean, 1 Jun 2009 6:10 PM
From: United States
Guillermo Moreno Presidente 2012 our only hope!
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Written by: antonioj, 1 Jun 2009 6:15 PM
From: Canada, Oakville on terra firma
Written by: josean, 1 Jun 2009 4:39 PM
From: United States
"antonioj,
Leave the subway alone that is my obsession!
Long Live Our Dear Leader Lie-onel Fernandez and Our Fatherland METROLANDIA!
It has like a nice North Korean ring to it!
"
oops "give to Caesar that which belongs to Caesar" dar a Cesar lo que pertenece a Cesar

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Written by: WalterPolo, 1 Jun 2009 9:33 PM
From: Dominican Republic
Thank God Lie-oh, Temi and Radha aren´t running a real country!
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Written by: Escott, 2 Jun 2009 1:12 PM
From: Dominican Republic, Sosua/Cabrera
Why source that rag DR1?

Non of their info is first hand. The husband of one of the partners that own it also has at least one questionable lease with the government on a industrial building for another business. The company was named here in a article about the the same issues. You didn't read it on DR1 I would bet you!
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Written by: Juango, 2 Jun 2009 1:52 PM
From: United States, far S. Florida (formerly Santo Domingo)
One thing is certain, No Money no Electricty... AES Dominicana/DPP has already announced last week, that the EDEs (government) have 15 days to pay at least $300 MM USD toward existing debt. Time is running. I feel there may be prolonged outages in the very near future. Reports have the existing debt exceeds $600 MM for all Electrical Production companies. That is some serious debt, considering inflation is rearing its ugly head in the next few months. The generators that feed the national grid, do not want to go into further debt with a country (DR), that is financially irresponsible. It does not look promising for promoting growth in the DR. Reliable electrical service is of utmost importance for any industry or business.
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