Big business questions high energy cost despite cheaper crude
Santo Domingo.- The National Business Council (Conep) on Monday reminded the CEO of the State-owned electric utility (CDEEE) that the current cost to generate power has fallen to an average of 12 cents per kilowatt from an average of 16 cents in 2014, a reduction resulting from lower global oil prices.
It said it’s inconceivable that the government debt is higher than it was in 2014, when the price of oil was higher, the price per kWh was higher and the profit of the distributors was lower with their sales price.
The country’s leading business organization said it’s concerned with the indifference with how, it says the government has dealt with a debt of more than US$850.0 million and stressed that the situation instills uncertainty in potential investors in Dominican Republic’s electricity sector.
The Conep also questions the solution to the lack of payment voiced by utility CEO Ruben Jimenez Bichara, who said the coal-fired plants would lead to lower costs.
The Conep said it agrees with the call by the power companies grouped in the ADIE to find a solution to the debt because if it goes unpaid, it jeopardizes its capacity to supply the energy contracted.
"We propose issuing short-term local bonds and the issuance of discountable promissory notes, and other funding sources which the State has proven to have access to competitive rates," the ADIE said on June 23.