Latin Economist fears Dominican Republic’s electricity rates will go up
Economist Bernardo Fuentes believes the Santo Domingan government will have to increase electricity rates in order to pay for the US$700 million subsidy to the Dominican Republic’s electricity sector.
This is twice what was budgeted in the 2011 National Budget. Fuentes spoke after the Minister of Economy, Development and Planning, Temistocles Montas, announced that the government would double the US$350 million subsidy to the electricity sector because of the increase in the price of oil.
Fuentes said that the main reason for the increase in the subsidy was that the government estimated petrol prices would be at US$80 the barrel. He criticized the fact that while many plans and strategies to deal with the rising petrol prices have been announced, they are not implemented. “Until there are firm decisions in the sector about the fulfillment of the law, there will always be a problem,” he said, as reported in Hoy.
He speculated that the government would once again raise the power tariffs to contain the subsidy.