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MeneameThe government of the Dominican Republic may reform the electric sector law because of the current energy crisis, the electricity superintendent George Reinoso was quoted as saying by government press agency CIG.
The government is considering a vertically integrated model in which the same company would generate, distribute and transport power, according to the report.
High fuel prices, the depreciation of the Dominican peso against the US dollar, and late payment from the government for its own power consumption means distributors are not making power purchase payments to generators, according to the report.
As a result, state power company CDEEE has threatened distributors with legal action and on August 13 it froze AES distributor Ede-Este's accounts to pay 71mn pesos of debts it is claiming.
Ede-Este has since started legal action against CDEEE claiming it does not owe the CDEEE anything, and that the move violated its power purchase agreement, Ede-Este said in a statement.
Reinoso blames high oil prices - the island nation relies on imported oil for about 70% of its power generation - and the distributors themselves for their financial crisis, but he recognizes the problem is also in the system's structure.
"We have to restructure the system completely to prevent this crisis from continuing," Reinoso said.
Reinoso said the pricing system should be changed to allow distributors to have a greater participation in generation.
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