Power companies: Users pay a high price despite lower cost

Santo Domingo.- DominicanRepublic´s power companies (ADIE) on Monday according to figures in the State-ownedelectric utility´s (CDEEE) report for August, the distributors still buy a kilowatthour (kWh) at 12.2 cents (US$) on average, despite that the power companiessell it at 17.68 cents on average, for a profit of 5.5 cents (US$).

ADIE executive vicepresident Milton Morrison said fuel prices are reflected in the cost ofgeneration, since cheaper oil should mean savings to distributors. “The samehappens with natural gas and coal.”

He said energy´s averageselling price in August this year was $12.20 cents (US) per kWh, whereas inAugust 2012 it was US$16.3 cents per kWh; in August 2013 was $16.2 cents (US) perkWh, and $16.7 kWh cents (US) in 2014.

In a statement, Morrisonadded that the country should note that on November 9 the spot market postedits lowest price in the variable costs dispatch (CVD) since 2005, when ADIE soldenergy at 5.85 cents per kilowatt hour.