From January 1 of this year until November, the Government has allocated more than 83,900 million pesos in transfers to the electrical sector to finance its operations. This amount is 10.2% higher than the accumulated amount in the same period of 2023.
Likewise, it represents four times more than the resources destined to mitigate the impact of the inflation and double what was assigned to the subsidies social measures implemented by the government to support vulnerable sectors.
He Ministry of Economy, Planning and Development (MEPyD) highlighted in its most recent report of macroeconomic situation – monitoring of the situation – that, particularly in November, approximately 7.1 billion pesos were transferred, equivalent to a year-on-year increase of 51.9%.
By disaggregating the preliminary data on the other lines of subsidiesit is indicated that 93.3% of what was budgeted for subsidies social benefits reached 39.4 billion pesos as of November 29 of this year. Of this amount, 26,782.4 million pesos were allocated to the program Feed yourself; The rest was distributed among the bonus for households for the purchase of liquefied gas from oil (LPG) and the Light Bonus.
In relation to support for low-income people in home payment of electrical service, the document specifies that this represented 10.1% of the total subsidies analyzed in the nine months of evaluation, that is, about 3,900 million additional pesos to the transfers direct contributions made by the government to the sector through the Electricity Distribution Companies (EDE).
The Executive Branch, through the draft that modified Law 80-23, which approved the General State Budget for the 2024 budget year, explains that the increase in international prices of oil has impacted the deficit of the electrical sector above what is foreseen in the country’s current budget.
He Government had calculated 89,379.6 million pesos to cover the deficit of the distributors Edenorte, Edesur and Edeeste. However, in the complementary or reformulated budget, this figure increased by 4.8%, so now the planned expenditure is 93,693.7 million pesos for these purposes.
The government’s decision to maintain the subsidydespite recommendations from international organizations such as the International Monetary Fund (IMF) to evaluate the impact of this measure on the State’s finances, it is based on the fact that the final prices of the energy electricity in the country depend on the behavior of fuels, an item that is also subsidized. As of November of this year, said subsidy It reached 15,810 million pesos.
Trade deficit
According to him Ministry of Energy and Mines (MEM), the customers assets of the three Distribution Companies increased by 2.5% by September 2024, equivalent to 77,063 customerswith a total of 3,158,570 users.
The entity specified in its most recent newsletter that the users invoiced in the month of analysis increased by 3.1%, that is, about 89,805 customersreaching a total of 2,964,084 people whose electricity consumption was calculated for the month prior to September.
On the other hand, the invoices collected in that ninth month of the year reflected an increase of 1.7%, which represents an increase of 39,864 customers. However, the total of 2,352,118 users invoiced remained lower than the total energy supplied through distribution networks.
In economic terms the deficit of the EDE increased by 16.8% in the January-September 2024 period, reaching a total of 1,282.1 million dollars.
In said period, the trade balance was 776.7 million dollarsrepresenting an increase of 15.0% (101.4 million) compared to the same period in 2023.
While the current balance was 1,130.4 million dollarswhose variation represents an increase of 16.0% (155.7 million) compared to 2023.
In that order, the MEM recalled that the imbalance responds to the increase in purchasing expenses and operating expenses. “It should be noted that the deficit operational of the Distribution Companies is subsidized with contributions from the Government Central (1,168.2 million dollars),” the report says.
But the president of the Unified Council of Electricity Distribution Companies (CUED), Celso Marranzini, assured that as of November the deficit financial already exceeded 1,450 million dollars.
He heist of energy
Marranzini reported that, as of September of this year, there were about 800,000 in the country users illegally connected to the National Interconnected Electrical System (SENI).
Then, at the end of November, he stated that improvements were already beginning to be seen in the electrical sectorwith the intervention of more than 26 substations, the acquisition of meters and the installation of 28 transformers. However, he acknowledged that challenges persist in terms of collection and citizen responsibility.
Marranzini participated in a business lunch organized by the National Union of Businessmen (UNE), where he highlighted that part of the deficit financial of the EDE It falls on million-dollar debts of state companies and energy theft.
He reported that the investment carried out until November to improve distribution networks exceeded 1,958.8 million pesos, with which they have been able to benefit more than 829,000 users who receive a more efficient and organized service.
The Ministry of Energy and Mines held the 2024 Science Fair, in the Renewable Energy Theme Park, in Ciudad Juan Bosch, in which 14 educational centers presented 22 technological innovation projects. Edesur Dominicana dismantled illegal connections in several shopping malls that were stealing electricity and hired 717 new clients. Edeeste carried out the installation of a 50 MVA transformer at the Los Minas Substation and began repowering work at the Romana 138kv substation.
