Santo Domingo.- An Inter-American Development Bank (IDB) report questions the State-owned power utility’s (CDEEE) role "as judge and jury in the measures pertaining to the government’s area of business."
The report prepared by technicians Vivianne Blanlot and Eduardo Bitran states that the National Energy Commission (CNE) "should become the regulatory body made ??in the sector policy mandated by the General Electricity Law, and take responsibility for leading the sector's recovery process, thus eliminating the CDEEE’s problem of receiving and distributing the Treasury transfers to offset the funding shortfall caused by applying a lower rate than the indexed, and this prevents the payment guarantee that the generators be the first priority. "
"In practice, the unchecked power is concentrated in a figure whose presence depends on the political decisions of each administration. This sets a high risk of lack of continuity in the industry’s recovery effort," it said.
The report, cited by hoy.com.do, notes that despite the commitment made as part of the plan to eliminate debt to generators, and to pay energy billed by the generators within a reasonable period, a significant debt has been accumulated.
To avoid repeating the liquidity problems to buy fuel and financial blackouts of the past, it recommends establishing "an intangible trust to ensure resources to pay the generators. It would be a separate account and protected by law, whose resources can only be used for the purpose for which it was created."
"This trust would manage the funds from the Treasury Ministry, including those reflected in the Stabilization Fund of the Electricity Tariff.”