BTN News: The president of the Association of Industries of the Dominican Republic (AIRD), Julio Brache, has raised serious concerns about the ongoing issue of unpaid electricity bills in the National Interconnected Electrical System (SENI). Despite efforts to reform the energy sector, a significant number of customers continue to evade payment, putting a disproportionate burden on those who do pay. This issue, which Brache highlighted during the Economic 2024 forum titled “Transforming Data into Opportunities for Our People,” organized by the Ministry of Industry, Commerce, and MSMEs (MICM), is seen as a major obstacle to the financial stability of the country’s electrical distribution companies (EDEs).
Brache expressed disbelief at the staggering figure of 200,000 customers who are reportedly not paying for their electricity. He emphasized the potential impact that recovering these payments could have on reducing the sector’s deficit. According to his calculations, if each of these customers owes approximately one million pesos, the total amount recoverable could reach a massive 200 billion pesos. Such a recovery would significantly alleviate the financial strain on the EDEs, which have been grappling with deficits partly due to unpaid bills and issues in energy transmission.
The AIRD president stressed the need for the current administration under President Luis Abinader to focus on improving the collection of unpaid bills as part of a broader reform of the electricity sector. Brache pointed out that Abinader has already committed to addressing this issue, which is critical for ensuring the sustainability and efficiency of the sector. He cited a particularly egregious case where a customer’s debt was reduced to 190 million pesos, calling such practices unacceptable and detrimental to the nation’s economic progress.
Brache’s concerns are part of a larger conversation about the future economic growth of the Dominican Republic. The private sector, he noted, is united in its efforts to support the government’s ambitious goal of doubling the country’s Gross Domestic Product (GDP) by 2036, a central objective of the Meta RD 2036 strategy. This initiative, established by Decree 337-24, aims to identify and implement the necessary reforms to achieve this target, in line with the goals set out in the National Development Strategy (END) and the National Competitiveness Strategy (ENC).
The Meta RD 2036 project is a comprehensive plan that addresses the structural challenges that have historically hindered the Dominican Republic’s development. By focusing on reforms in infrastructure, institutional integrity, innovation, fiscal and macroeconomic stability, health, and education, the government and the private sector aim to create a more prosperous and competitive economy. The success of this plan will require concerted efforts from all stakeholders to overcome the persistent obstacles that have slowed the country’s progress.
In conclusion, Julio Brache’s remarks highlight a critical issue within the Dominican Republic’s electricity sector that needs urgent attention. The ongoing problem of unpaid electricity bills not only threatens the financial health of the sector but also undermines the broader economic goals of the country. As the government and the private sector work towards achieving the ambitious targets set out in Meta RD 2036, addressing these challenges will be essential for creating a more stable and prosperous future for the Dominican Republic.
