The DR gov compromised to end subsidy to electrical sector for 2010 at National Summit.
The vice president of the Dominican Corporation of State Electric Businesses (CDEEE), Radhames Segura, compromised in the Summit for the national Unity set against the World Economic Crisis to apply a technical rate to the electric service, from June 30, 2010.
The technical rate consists in the billing of the electric service without subsidies or funds of stabilization, for which the users in general level, will pay in base to the actual costs of energy production, without protectionist intervention of the Dominican State.
"Once the Supervisory of Electricity (SIE) carries out the collection on a technical rate, the users will have to adhered to the constant changes of the prices of the fuels and of the exchange rate, to receive the same fluctuations in the payments of its receipts", said Segura.
The businessmen, generators of electricity, merchants and political parties declared in agreement with the proposal that had been done in principle by the business sector, but the Foundation for the consumer Rights (Fundecom) conditioned its support to that the State put out to bid in a correct way the purchase of energy to the generating businesses.
Source: Listin Diario
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The truth is that this was on the agenda long ago, as I explained that enforcing and penalizing electricity theft was going to be in full force as well as the installation of prepaid meters in those homes that can't sustain an open billing for energy they consume and can't afford by virtue of disparaged usage.
This will clear billions of Pesos from the gov spending to support the historic free-for-all, which was instituted by presidential decree under the Trujillo regime.
Same goes for Gas, water, sewage and all other basic services that a minority had to foot the bill, while others used and misused the services w/o paying a penny for them.
The subsidies to these sectors represent a huge percentage of the internal expenditure for the gov's coffers. That money will now fund other sectors that must be addressed as they should.
Just as with our Banking, RE and Industrial sectors, this will make those services become stronger and reliable to our needs and efficient as they should be since day one.
Very simply put, if you own a home today is b/c you could afford to do so. If you drive a car while making the financing payments is b/c you could afford to. If you expect to run your A/C and watch TV around the clock, then sure as hell you should be able to afford such and not at the cost of others.
We pay the highest electrical rates b/c only a minority pays for the services they receive. Generators always must keep lines of credit open, in order to be able to purchase the raw materials to produce that energy that seldom is paid for within 90 days, let alone as any normal industry does in a 30 day cycle...
And that's IF the gov had the money to pay for the free loaders to begin with!
I told you here before... Things will improve as services will meet the needs of the public, the paying the public. The role of the gov is going to be redefine to what, how and where it must intervene for the welfare of those that can't meet the most basic of necessities. We have plenty social programs to deal with these kinds of cases effectively. We need less gov intervention in our private enterprises and should place the burden on each local municipality to act upon their denizens needs.
The Gov shouldn't be micromanaging the municipalities or funding their base, it must up to their own local device that they should raise the funding to meet local needs via local added VATs. The role of the Gov must be that of a Federal authority where national uniform laws and rules are enforced. Even the construction, maintenance and control of our major road networks should be removed from gov hands. We can place the needs of our road systems in the hands of private enterprise, while keeping the gov's to that of a strict supervisory role.
Placing toll booths in our regional/national road network would in fact provide the people with safe/illuminated/expanded and properly maintained road networks.
That's all w/o touching the funds of gov that should be directed to other imperative needs.
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