05 November 2009

Marranzini calls for agreement to depoliticize electricity

He said that he received a ship without a course and full of ballast
Celso Marranzini appeared before the American Chamber
SANTO DOMINGO. The executive vice-president of the Dominican Corporation of State-owned Electricity Enterprises (CDEEE) proposed yesterday a great national agreement in which the leaders of industry and commerce and banking and the highest political leadership commit themselves to depoliticize the issues surrounding electricity.

Celso Marranzini said, at the same time, that next week he will submit the Club Paraiso for an illegal electric connection and soon he would do the same for an apartment tower in Piantini, but this case is currently in the phase of preparation.

He also gave a deadline of 17 November for persons with illegal connections to correct the situation, since afterwards they would be sent to court to face charges.

He referred to the fact that when somebody does not pay for electricity, it is not thievery that one committing but rather murder against the nation that does not allow the country to be competitive.

Marranzini, speaking before the membership of the American Chamber of Commerce, said that on 18 August he received a ship that was full of ballast, without a course, a lack of definition, politicized and charged with debts.

He said that the debt with the generators was more than US$500 million, with six months back pay owed and commercial debts for US 1.0 billion, a bank balances of RD$5.0, and US$750,000, too many people on the payroll, and dozens of projects without definition, including the closing of credit of the Refinery on 31 July of this year. He referred to the fact that in 75 days they reduced the expenses by RD$44.6 million a month, a 40% reduction in relation to the former periods.

They paid US$108 million to the generators which meant they paid 90% of the invoice for the month, compared to the 70% paid in August when they paid US$88 million. In October of 2008 the government's subsidy was US$65 million and it was US$23 million in October of that year, but now they paid 90% of the invoice.

Marranzini cited the fact that in August they collected RD$3.4 billion, while in October the number was RD$4.15 billion for a 23.5% increase. He referred to the fact that the country loses US$3.0 billion a year due to inefficiency in the sector.

The CDEEE's leading official said that they are going to propose the creation of a trust fund that will channel the transfers received from the state, carry out the refurbishing of the transmission lines, and rationalize the expenditures, a process that will be extended to the distributors.

Meanwhile, of the American Chamber of Commerce, Alejandro Peña Prieto, said that in spite of the efforts, the country is suffering from electricity rates that do not cover costs, the chronic financial deficit, a lack of resources for investments, poor quality of service, blackouts, rationing, stealing and non-payment of service as well as the bad state of the transmission lines.


De Diario Libre

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