Punta Catalina reports 42% drop in coal prices in early 2024

Santo Domingo.- The Punta Catalina Electricity Generating Company (EGEPC) responded to reports of decreased energy sales billing in the first five months of 2024, clarifying that this decline is linked to a drop in coal prices and does not affect the company’s financial health. EGEPC emphasized that this reduction in billing has benefited its sole customers, the state-owned Electricity Distribution Companies (EDE), by offsetting the rising costs of natural gas contracts.

EGEPC’s revenue is directly tied to coal prices, the primary fuel for its power generation. From January to May 2023, coal was priced at $169 per ton, generating $299 million in revenue. However, by 2024, the price had dropped by 42% to $98 per ton, resulting in $257 million in revenue—a 14% decline from the previous year. Despite this revenue decrease, EGEPC remains financially stable, and the cost savings have led to lower rates for the EDEs, ultimately benefiting consumers.

The company also reported a 1.7% increase in energy production, generating 2,071 GWh in the first five months of 2024, solidifying its position as the leading energy supplier for the National Interconnected Electric System (SENI). Additionally, EGEPC explained a rise in non-personal service expenses, from $18 million in 2023 to $43.9 million in 2024, primarily due to a change in tax obligations after its integration into Empresa de Generación Eléctrica Punta Catalina, S.A. Despite the increased costs, EGEPC assures that its financial position remains robust.