Dominican Republic has the second most expensive energy in the world
Only Italy has the kwh more expensive than the Dominican Republic
Edwin Ruiz
SANTO DOMINGO. The World Economic Forum (WTF) says it is so. In a ranking of 124 countries, the Dominican Republic occupies the second place in the world by having the most expensive electricity for industry, which is only surpassed by Italy.
In its 2014 report, on the "Global Energy Architecture Performance Index Report 2014" the WEF reports that the kilowatt-hour (kwh) costs Dominican industry 21¢ of a dollar. This price is only surpassed by the 28¢ that is paid by Italian industry. Although the report includes 124 countries, it only has information on the cost of electricity for 60 nations.
Among the Central American countries that make up DR-CAFTA, of which the Dominican Republic is also a member, the ranking includes Costa Rica, Nicaragua, and El Salvador, whose prices of the kilowatt-hour for industry are much lower: 11¢, 16¢ and 17¢ respectively.
In the United States, which is also a member of DR-CAFTA, the price is seven cents of a dollar per KWH.
Starting in 2015, as part of the commitments contracted within the framework of this commercial treaty, the Dominican industrial sector will face the competition in the local market of industrial goods that will come into the country free of tariffs.
The problems with the electricity supply, which includes costs and quality, are among "the principle obstacles to the functioning of the small and medium companies," according to a 2013 report that covered the growth and employment in the Dominican Republic, which was published by the International Monetary Fund.
The WEF worked up its index starting with what it defines as "the energy triangle", whose vertices are growth and economic development, environmental sustainability, and energy security, together with universal access. In this index, the Dominican Republic occupies position 57 in the world.
In the "Top 10" of this Index, which includes the 10 countries with the best combined performance of the three principle axis, are Colombia (in #7) and Costa Rica (#9).
The case of Costa Rica, a member of DR-CAFTA, has become a "leader in renewable energy", the owner of "a considerable investment in its development and expansion." The report says that this country produces 99% of its energy from renewable sources, mostly hydroelectricity.
In contrast, in the Caribbean and in Central American, the Dominican Republic and Jamaica have the "worst performance" in the indicator that reflects the import of energy.
To reduce the dependence on imports and the exposure to the fluctuations of the prices of fossil fuels is an important question for both countries, "that should look at the example of the long term strategy of Costa Rica in order to reduce the risks of energy dependence."
Tariffs: high and subsidized
The statistics on the electric sector that are released by the Dominican Corporation of State-owned Electricity Enterprises (CDEEE) revealed that the average price of sale of the kilowatt-hour during 2013 was US$0.1933/kwh. Compared with the average process of 2009 and 2010, which were US$0.1834 and US$0.1868 cents of a dollar, respectively, the 2013 price represents an increase. However those prices include the state subsidies, since the average purchase price by the Electricity distributors was US$0.2259 kwh.
In its 2014 report, on the "Global Energy Architecture Performance Index Report 2014" the WEF reports that the kilowatt-hour (kwh) costs Dominican industry 21¢ of a dollar. This price is only surpassed by the 28¢ that is paid by Italian industry. Although the report includes 124 countries, it only has information on the cost of electricity for 60 nations.
Among the Central American countries that make up DR-CAFTA, of which the Dominican Republic is also a member, the ranking includes Costa Rica, Nicaragua, and El Salvador, whose prices of the kilowatt-hour for industry are much lower: 11¢, 16¢ and 17¢ respectively.
In the United States, which is also a member of DR-CAFTA, the price is seven cents of a dollar per KWH.
Starting in 2015, as part of the commitments contracted within the framework of this commercial treaty, the Dominican industrial sector will face the competition in the local market of industrial goods that will come into the country free of tariffs.
The problems with the electricity supply, which includes costs and quality, are among "the principle obstacles to the functioning of the small and medium companies," according to a 2013 report that covered the growth and employment in the Dominican Republic, which was published by the International Monetary Fund.
The WEF worked up its index starting with what it defines as "the energy triangle", whose vertices are growth and economic development, environmental sustainability, and energy security, together with universal access. In this index, the Dominican Republic occupies position 57 in the world.
In the "Top 10" of this Index, which includes the 10 countries with the best combined performance of the three principle axis, are Colombia (in #7) and Costa Rica (#9).
The case of Costa Rica, a member of DR-CAFTA, has become a "leader in renewable energy", the owner of "a considerable investment in its development and expansion." The report says that this country produces 99% of its energy from renewable sources, mostly hydroelectricity.
In contrast, in the Caribbean and in Central American, the Dominican Republic and Jamaica have the "worst performance" in the indicator that reflects the import of energy.
To reduce the dependence on imports and the exposure to the fluctuations of the prices of fossil fuels is an important question for both countries, "that should look at the example of the long term strategy of Costa Rica in order to reduce the risks of energy dependence."
Tariffs: high and subsidized
The statistics on the electric sector that are released by the Dominican Corporation of State-owned Electricity Enterprises (CDEEE) revealed that the average price of sale of the kilowatt-hour during 2013 was US$0.1933/kwh. Compared with the average process of 2009 and 2010, which were US$0.1834 and US$0.1868 cents of a dollar, respectively, the 2013 price represents an increase. However those prices include the state subsidies, since the average purchase price by the Electricity distributors was US$0.2259 kwh.
Edwin Ruiz
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