The Dominican Republic To Implement Energy Sector Reforms

Dominican Republic's President Luis Abinader on Thursday signed the "Electricity Pact" which seeks to improve the efficiency of public distribution companies and curb fiscal deficit in the sector.

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Besides periodic reviews of tariffs, this pact allows Electricity Distribution Companies (EDE) to subcontract other companies to handle the collection of clients' bills.

In previous years, the signing of the document was postponed twice due to several differences, among them, permits for auditing EDE services.  

Although Abinader welcomed the conclusion of the Pact, he pointed out that the electricity sector deficit is currently responsible for half of the country's non-financial public sector debt.  

Energy Minister Antonio Almonte announced the approval of ten contracts for the purchase and sale of renewable energy and the beginning of a production project in Monte Cristi.

The companies to which these contracts will be awarded have limited concessions periods not exceeding seven years of exploitation. 

"Dominicans could pay for energy at a lower cost if we clean up the electric sector of some distortions...this requires not only the application of the law but also changes on some regulations," Almonte said.