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Prepaid Electricity: A Flexible Solution for Low-Income Households to Control Energy Costs

BTN News: In recent years, the prepayment electricity service has become an essential solution for various communities across the country, especially in lower-income areas. This system allows users to control their energy consumption more effectively, offering a flexible way to manage their electricity usage and budget. However, its introduction has also highlighted challenges, particularly for those who are still unfamiliar with how it works. As of June 2024, Edesur Dominicana had approximately 133,990 users who had recharged their prepaid electricity service. This number is in constant flux as consumers recharge according to their needs and financial capacity, underscoring the adaptability and importance of this system in the daily lives of many households.

The prepaid electricity model functions similarly to prepaid mobile phone services. Customers purchase a balance in kilowatt-hours (KW/H), and as they consume electricity, the balance decreases. When the balance reaches zero, the electricity supply is automatically cut off until the user makes another payment to reactivate the service. This approach offers users a significant advantage: they can tailor their energy consumption to fit their budget, only buying the amount of energy they can afford. For instance, a technical expert consulted by Diario Libre mentioned that with just 50 pesos, a household could secure a day’s worth of electricity—provided that high-consumption appliances like air conditioners or microwaves are not used. However, this small amount may not suffice for larger homes or businesses with higher energy demands.

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The cost of prepaid electricity is regulated by the Superintendence of Electricity (SIE) and governed by the General Electricity Law. The pricing structure is tiered, encouraging efficient energy use. The government provides subsidies to consumers who do not exceed 700 KWH per month. The rate ranges from 4.44 pesos for consumption between 0 to 200 KW/H to 10.86 pesos for consumption between 301 to 700 KW/H. Should a consumer exceed this limit, they must repay 1,852.10 pesos for the subsidy received and pay a higher rate of 11 pesos per additional KW/H.

One of the significant challenges remains the lack of understanding of how these rates are calculated. Diario Libre collected various user testimonies, revealing a mixed reception. In some areas, the prepaid system is welcomed as it eliminates the surprise of a monthly bill. However, in other regions, it is viewed as challenging due to the complex calculations that influence the price of the next recharge.

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Marcelino Hernández, who owns a small grocery store in Santo Domingo Oeste, had to accept the installation of a meter in his business after Edesur technicians explained that his equipment’s energy consumption disqualified him from the prepaid rate. Yet, in his second-floor residence, the prepaid system was installed. To avoid a high bill, Marcelino restructured his electrical setup, separating his business’s consumption from his home’s to manage costs better.

In areas where the prepaid system has been introduced, energy distributors have certified local businesses, such as small grocery stores, pharmacies, and hardware stores, to allow people to recharge their service. These establishments use special devices that enable them to monitor users’ consumption through a code provided by the distributor. For Edesur customers, an additional payment option has been integrated through a mobile app, offering even more convenience.

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The prepaid electricity system represents a significant shift in how energy is consumed and paid for, particularly for lower-income households. It empowers consumers to take control of their energy usage, providing a sense of security by aligning consumption with their financial capabilities. However, the system also demands a level of understanding and adaptability that some users may find challenging. As this service continues to expand, ongoing education and support will be crucial to ensure that all users can fully benefit from the advantages it offers.

Bright Times News Desk
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