Through Resolution SIE-068-2022-TF, the Superintendency of Electricity instructed the electricity distribution companies to credit or debit their customers, as appropriate, the difference in prices in the transition rates.
Santo Domingo, DN – Through Resolution SIE-068-2022-TF, the Superintendence of Electricity (SIE) announced that it will modify Resolution No. SIE-061-2022-TF issued on June 30, in which the rates were established for the July-September 2022 quarter, leaving them without effect and maintaining the rates applied in the April-June 2022 quarter.
“After Resolution No. SIE-061-2022-TF was issued, this Superintendence has verified that the current extraordinary conditions of the world situation have generated a disproportionate increase in fuel prices, essential inputs for the thermal generation of our energy matrix, which impact the cost of electricity generation; the process of supplying the Electricity Distribution Companies and the calculation of tariffs”, indicates the SIE in the resolution.
The move comes after President Louis Abinader announced the suspension of the next quarterly adjustments of the electricity rate to the regulated users of the EDEs, which have been applied since last November as part of the agreements reached in the Electric Pact, which was agreed upon by all the political parties, businessmen, representatives of the civil society, among others.
In said agreement, it was agreed to dismantle gradually and in stages, concluding in December 2026, the cross subsidy that is applied to electricity until reaching the technical rate. This gradual clearing began to be applied in November 2021.
“The extraordinary circumstances in which the world finds itself, which affect economically both internationally and locally, are very different from those that existed when the Electric Pact was signed. Due to a social and moral imperative, the Government sees the need to pause the gradual dismantling of the subsidy. However, it is important to note that the other aspects of the Electric Pact that make the sector more efficient are still in force and are being executed. It should be noted that the Pact allows this flexibility in the execution times of the dismantling of the subsidy, as long as it is fulfilled before December 2026 “explained Rafael Velazco Espaillat, Superintendent of Electricity when communicating the resolution.
Additionally, the SIE Council, in the exercise of the legal powers and powers under its responsibility in accordance with current regulations, which contemplate having the measures it deems necessary for the safety of the public and aimed at safeguarding the rights of consumers of electricity ordered, not only to modify what refers to the transition rates to be applied, but also orders the electricity distribution companies EDESUREDENORTE and EDEESTE to review the invoices issued in the month of July and credit or debit, as appropriate, the difference between the established prices in the following billing.
The Dominican Government has been making great efforts, under the current international context, to contain and absorb part of the rate adjustments, to affect Dominican families as little as possible. Only for the adjustment applied in the April-June quarter, the State absorbed the differential cost of residential customers (Tariff BTS-1), with monthly consumption of 300 kWh or less, which is equivalent to 1.9 million families. This segment received an adjustment of only 9% in its rate, instead of the 14% that corresponded according to the methodology for calculating the transition rate.
In the period between 2003 and 2020, the State had to allocate RD$174 billion in expenses for the national electricity sector. Only for this quarter from July to September, under the modification corresponding to the adjustment and with the objective of containing the increase for the Dominican family, the State will grant RD$2,810.42 million per month for the payment of the electricity rate subsidy.
The SIE reiterated that, as the institution responsible for the regulation and supervision of the electricity subsector, it will continue to protect the rights of consumers of the public electricity service and work with transparency to guarantee the competitiveness and self-sustainability of the sector so that the country has an electricity supply trustworthy.
