EGE Haina criticizes state participation in electricity generation
SD. At a time when the CDEEE is working on a contractor taking charge of the engineering and construction work of two new coal-fired generation stations, which will be owned by the Dominican state, the general manager of EGE Haina, Tito Sanjuro, criticized yesterday the fact that the government is participating in the sector. This is because he feels that "the state should not compete in the market of thermal generation," and because "this will discourage the arrival of new investors."
The executive feels that the role of the authorities should concentrate on "focusing the investment of the state in the reduction of losses and improving the (transmission) networks," and in providing conditions that give confidence to the investors for a new thermal generation unit."
This was his position as he took part in a breakfast organized by the Energy Committee of the American Chamber of Commerce in the Dominican Republic where, together with Marco de la Rosa, the president of AES Dominicana, the perspectives and future of investments in the electricity in the country were analyzed.
Sanjuro criticized that while the companies are carrying out enormous investments in electricity production, the state has still not resolved the problems of distribution, and of collection of the electricity sold, entering into a vicious circle that keep the people unhappy with the electric service.
He noted that EGE Haina has invested US$500 million in the last three years. "With the private sector investing in efficient generation, the government can focus it funds on social programs of importance, such as public health, public education, public safety, etc," he said.
He announced that the industry has plans to put into operation the Quisqueya 2 Generation Station in September of this year, which he described as the biggest generation complex in the country, with a total capacity of 430 megawatts: 215 MW from Quisqueya I and 215 MW from Quisqueya 2.
AES Dominicana
During this participation in the breakfast, the president of AES Dominicana stressed that this company is selling the kilowatt-hour at a price that is 26% less than the hydroelectric generators in the Dominican Republic, and 40% beneath the average of the other technologies of Central American and the Caribbean.
He said that in order to insure the sustainability of the sector, the country should guarantee the judicial security and the respect for the regulatory framework, as well as the design and application of a new rate structure that covers the costs of the supply chain.
Electricity Pact?
The government and the generators have still not achieved at the electricity pact that is contemplated in the National Development Strategy.
"What is missing is for the other party (the state) to also commit to the repairs of the distributors, the issue of the electricity rates, to a series of repairs in the area of transmission and I believe that this has not happened. There has been no talks regarding what the integrated plan will be or what has to be done," said Sanjuuro.
De la Rosa said that this issue should be brought to the Economic and Social Council.
Sanjuro criticized that while the companies are carrying out enormous investments in electricity production, the state has still not resolved the problems of distribution, and of collection of the electricity sold, entering into a vicious circle that keep the people unhappy with the electric service.
He noted that EGE Haina has invested US$500 million in the last three years. "With the private sector investing in efficient generation, the government can focus it funds on social programs of importance, such as public health, public education, public safety, etc," he said.
He announced that the industry has plans to put into operation the Quisqueya 2 Generation Station in September of this year, which he described as the biggest generation complex in the country, with a total capacity of 430 megawatts: 215 MW from Quisqueya I and 215 MW from Quisqueya 2.
AES Dominicana
During this participation in the breakfast, the president of AES Dominicana stressed that this company is selling the kilowatt-hour at a price that is 26% less than the hydroelectric generators in the Dominican Republic, and 40% beneath the average of the other technologies of Central American and the Caribbean.
He said that in order to insure the sustainability of the sector, the country should guarantee the judicial security and the respect for the regulatory framework, as well as the design and application of a new rate structure that covers the costs of the supply chain.
Electricity Pact?
The government and the generators have still not achieved at the electricity pact that is contemplated in the National Development Strategy.
"What is missing is for the other party (the state) to also commit to the repairs of the distributors, the issue of the electricity rates, to a series of repairs in the area of transmission and I believe that this has not happened. There has been no talks regarding what the integrated plan will be or what has to be done," said Sanjuuro.
De la Rosa said that this issue should be brought to the Economic and Social Council.