He Dominican state almost 106,000 million pesos were shed during the 2025 to allocate them to the payment of electricity subsidya figure that far exceeded what was budgeted for the period and what was spent for that purpose in 2024.
The preliminary figures, included from January 1 and the December 26 Last year, they reflect that the Government allocated 105,849.1 million pesos for the aforementioned purpose, an amount that represents 98.7% of the 107,225.5 million budgeted.
Every week of the year that has just ended, the State had to transfer electricity distribution companies (EDE), on average, 2,075.5 million pesos to cover its financial deficit.
In the General State Budget for 2025the authorities estimated 84,996.4 million pesos for the electricity subsidysuffering a upward modification of 22,229.1 million in the reformulated budget project.
This is contained in the weekly report of the execution of central government spending prepared by the General Budget Directorate (Digepres), whose data anticipate an increase in this item in relation to what was spent in 2024.
13.8%
It was the growth of the amount allocated to the electricity subsidy last year in relation to 2024.
For electricity subsidybetween the January 1 and on December 27, 2024, the authorities allocated 92,972.8 million pesos, a figure that in a similar period of 2025 was surpassed in 12,876.3 millionfor an increase of 13.8%, according to the records of the Digepres.
For 2026the Dominican tax authorities estimated spending on electricity subsidy 85,438.9 million pesos, as stated in the draft General State Budget Law.
Losses of the EDE
The losses in the EDE of state capital did not stop increasing during the 2025.
At the end of September last year, the most recent report of the Ministry of Energy and Mines (MEM), only the energy losses of the three electricity distributors were 38.4%, representing an increase of 0.9 percentage points in relation to the 37.5 they registered in the same month of the previous year.
In economic termsbetween January and September 2025 The distributors purchased energy for 2,339.8 million dollars, of which they billed their clients for 1,565.9 million and only collected 1,485.7 million dollars, for a deficit result of 854.1 million, according to the MEM.
Despite this increase in losses and state subsidythe operating expenses of the EDE They went from 391.5 million dollars in 2019 to 473 million in 2024, equivalent to an increase of 20.8%. In that same period, investments did the opposite, reducing by 26.7%, falling from 295.5 million dollars to 216.7 million dollars.
Despite the sustained increase in losses in the EDEs during the administration of Luis Abinader’s Government, the Minister of Energy and Mines, Joel Santos, assured that 2025 closed with relevant milestones for the electricity sector, reflected in the growth of renewable generation, execution of key works of the system and the increase in foreign direct investment (FDI).
Santos highlighted that last year the country registered a maximum instantaneous demand served of 3,923 megawatts (MW), the highest level of renewable generation, with 1,554 MW, and that the electricity sector received 743.5 million dollars of FDI, equivalent to 25.7% of the total, positioning itself as the main receiving sector of foreign capital.
