Fedomu claims electricity companies owe municipalities millions

Santo Domingo.- Nelson Núñez, president of the Dominican Federation of Municipalities (Fedomu), stated Wednesday that while municipalities are accused of owing US$300 million to the country’s electricity distribution companies (EDEs), the power providers have also failed to comply with legal obligations established by the Constitutional Court and the General Electricity Law 125-01.

Núñez explained that Constitutional Court ruling TC/0100/13 requires electricity distribution companies to transfer 3% of the billing collected within each municipality and municipal district on a monthly basis. In return, local governments are responsible for paying electricity costs related to public lighting and municipal facilities.

According to Fedomu, the EDEs have not complied with the ruling since 2013, generating what Núñez described as an “incalculable” debt owed to municipalities nationwide.

The Fedomu president, who also serves as mayor of Samaná, emphasized that the Constitutional Court determined the 3% payment is not a tax, but rather a municipal compensation fee established within legal limits.

Núñez argued that the lack of payments from the electricity distributors has contributed to the financial difficulties faced by city councils, particularly regarding the costs associated with public lighting services.

His statements came in response to recent comments by Celso Marranzini, who said that unpaid municipal electricity bills represented a major burden on the Dominican State, totaling approximately US$300 million last year.

However, Núñez maintained that the financial obligations are mutual, insisting that the EDEs also carry significant debts with municipalities due to their failure to comply with the Constitutional Court ruling.