BTN News: The electricity sector in the Dominican Republic faces a deeply ingrained and persistent challenge that has hindered progress for years. According to Celso Marranzini, the President of the Unified Council of Electric Distribution Companies (CUED), the sector is trapped in a vicious cycle marked by financial deficits, outdated infrastructure, and rampant electricity theft. Marranzini’s concerns underscore the urgent need for reforms, particularly in how the nation combats the theft of electricity—a problem that, as he stresses, is not confined to low-income neighborhoods but pervades all sectors of society. The ongoing losses, both technical and non-technical, are not just a financial drain but a serious impediment to the quality and reliability of electrical service across the country. This complex web of issues continues to erode the integrity of the electric distribution system, demanding immediate and decisive action.
Marranzini has called for a renewed focus on the structural problems that have plagued the country’s electric distribution companies (EDEs) for years. He emphasizes that these challenges, while longstanding, have now reached a critical point where they threaten the future stability of the entire energy sector. The lack of investment in the modernization of the distribution infrastructure has left the networks vulnerable to illegal connections and unable to meet the growing demand for electricity. This situation, in turn, exacerbates the problem of losses, which are currently at unacceptably high levels. The inefficiency within the system, coupled with widespread fraud, not only harms the financial viability of the EDEs but also degrades the quality of service provided to millions of Dominicans, leading to frequent blackouts and power fluctuations.
The issue of electricity theft, or fraud, is particularly concerning for Marranzini. He points out that this illegal activity is often wrongly attributed solely to poorer communities, whereas in reality, it is a widespread issue affecting all strata of Dominican society. The theft of electricity, he argues, is not just a criminal act but a betrayal of the social contract, as it undermines the efforts of those who do pay for their service. Marranzini has been clear about his intent to address this problem head-on, stating that the CUED is engaged in an all-out war against this “flagelo,” or scourge. He has called for the Public Ministry to reclaim the role of the General Prosecutor’s Office for the Electric System (PEGASE) to ensure that those who commit electricity fraud are punished severely.
In an effort to tackle non-payment and fraud more aggressively, Marranzini announced plans to collaborate with credit companies to identify and publicize customers who fail to pay their electricity bills. This strategy aims to discourage non-payment by making defaulters’ identities known through both credit bureaus and media outlets. Moreover, for those involved in fraud, the approach will be even more stringent. Marranzini has warned that not only will the names of those committing electricity fraud be made public, but their photos will also be shared, marking a significant escalation in the CUED’s efforts to deter this behavior. This initiative is part of a broader campaign to bring an end to the culture of non-payment and fraud that has been so detrimental to the sector.
The broader implications of these issues are profound. The losses suffered by the EDEs—whether through technical inefficiencies, outdated infrastructure, or outright theft—represent a significant economic burden. These losses not only drain resources that could be used to improve and expand the electric grid but also contribute to the financial instability of the EDEs, further limiting their ability to invest in necessary upgrades. As Marranzini notes, the deteriorating state of the electric grid has a direct impact on the daily lives of Dominicans, leading to unreliable service and frequent power outages that disrupt both personal and economic activities.
Addressing these challenges will require a comprehensive approach, one that includes significant investment in modernizing the electric grid, a crackdown on electricity theft, and a restructuring of the financial operations of the EDEs. Marranzini’s call to action is a recognition that the current state of affairs cannot continue if the Dominican Republic is to ensure a stable and reliable energy future. Every day that these issues go unaddressed, the country’s energy sector falls further behind, making it even more difficult to meet the needs of its citizens and support economic growth.
In conclusion, the Dominican Republic’s electricity sector is at a crossroads. The challenges it faces are significant, but they are not insurmountable. With strong leadership, adequate investment, and a determined effort to combat inefficiency and fraud, it is possible to break the cycle that has held back progress for so long. Marranzini’s statements are a call to action for all stakeholders in the sector to come together and work towards a future where reliable, high-quality electric service is the norm, not the exception.
