Home World Regulations of the Electricity Pact instructs to target subsidy to the tariff

Regulations of the Electricity Pact instructs to target subsidy to the tariff

The Government, through the Cabinet of the Electricity Sector, presented the regulation of the national pact for the reform of the sector, issued by decree 655-21, which promotes actions to increase the efficiency and quality of the electricity service, in addition to improving the confidence, investment climate, sustainability and competitiveness of the system.

This regulation exhorts the Superintendency of Electricity to start the process of gradual dismantling of the subsidies contained in the electricity tariffs.

This provision will set in motion the process for the rationalization of electricity consumption subsidies which should lead to them being received, directly and focused, exclusively by households in situations of poverty or vulnerability.

On the issue of bonoluz, the regulation puts in the hands of the Cabinet for the Coordination of Social Policies, the Superintendency of Electricity and the distribution companies, to carry out all the necessary actions for the incorporation to the Bonoluz Program of all the households benefited by the Supérate Program.

The president of the Cabinet of the Electricity Sector, Lisandro Macarulla, said that the promulgation of this regulation and compliance with the Electricity Pact will contribute to achieving a quality, universal, environmental and financially sustainable service for the nation, through the execution of important government programs called to solve crucial problems for the development of the sector and the country.

In a note shared with the media, it is specified that This regulation constitutes the necessary framework to execute the long-term strategic vision for the Dominican energy system as established in the Electricity Pact.

Explain what the regulation calls for the development of the necessary regulations, including the updating of all the laws that govern the sector, to provide an electricity service under the principles of accessibility, quality, efficiency and transparency, in conditions of healthy competition, legal security and promotion of synergies between public and private actors.

The note states that this regulation ratifies the prerogative of the Dominican Government to maintain the State’s monopoly participation in hydroelectric generation greater than 5MW and the transmission of energy, guaranteeing equal treatment to the different actors and agents, public and private companies.

Other provisionsThe Electrical Cabinet also announced that, among other responsibilities, the Ministry of Energy and Mines (MEM) is assigned to carry out the audits of the institutions that will be subject to restructuring, including the National Energy Commission (CNE), the Dominican Corporation of State Electric Companies (CDEEE) and the Rural and Suburban Electrification Unit (UERS).

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