The fare review will mean savings for the State of between RD$80 and RD$90 million each month. Next year, the increase will take place between January and March.
Taken from El Día
SANTO DOMINGO.- -The Government officially announced yesterday that starting November 1st, the dismantling of the electricity subsidy will begin, which comes with a 1.4 percent increase per kilowatt hour in the rate that the population will pay according to their monthly consumption, which will imply savings of between 80 and 90 million pesos each month.
This upward spiral in the cost of electricity is not unique to the country; the most recent impact is being felt by consumers in the United States, France, and Spain, who are experiencing an increase in electricity consumption of up to 44%.
For example, in France last month, electricity rates increased by 12.6%, while in Spain, electricity prices rose by 10.9% in September compared to August, and by 44% compared to the same period last year.
The situation does not appear to be improving due to the global energy crisis, characterized by rising oil and natural gas prices.
The Dominican Republic is not exempt from this situation, and the Government has decided to update energy costs and gradually reduce the transfer of resources to the energy sector, which represented approximately RD$174 billion between 2003 and 2020.
In addition to this, with the application of the regulations of the Electricity Pact, which contemplates improving the operation of distribution companies, such as reducing losses by eight points in the next five years and two months, the time it will take to dismantle.
Which will increase?
The electricity rate adjustment, which will take effect in November, will impact residential customers' bills by an average of RD$53.89 for those consuming between 100 and 500 kWh per month. For those consuming between 600 and 1,000 kWh, the increase will be RD$47.71. For small businesses, depending on their kWh consumption, the increases range from RD$31.99 to RD$41.25.
For large businesses, the increase will be between RD$423.8 and RD$892.6. And the impact of this 1.4% rate increase for industries and free zones will be from RD$2,865.32.
The information was released by the Superintendent of Electricity, Rafael Velazco Espaillat, who explained that this gradual dismantling of the electricity tariff subsidy is being done in accordance with what was established between the different sectors of the country within the framework of the Electricity Pact, signed last February.
He indicated that the changes in the subsidized rate to the real or reference rate will be made with minimal percentage increases from November 2021 to December 2026, that is, five years and two months, when it is expected that it will not have a subsidy.
He explained that the fare review will mean savings for the State of between RD$80 and RD$90 million each month.
He also indicated that the next fare increase will take place between January and March.
review
the energy tariff for the next five years according to the cost of oil, said Rafael Velazco Espaillat, noting that they will only use a reference tariff in the dismantling process.
