Marranzini presents a plan for the recovery of the Dominican Republic's electrical distribution system.

Aug 21, 2024

The strategy calls for a substantial investment, with more than $650 million secured in financing from multilateral organizations, earmarked for network modernization and the expansion of telemetering infrastructure. It also calls for a tender for the private sector to operate and maintain these companies, without compromising state ownership.

In a decisive step toward the transformation of the national electricity system, the president of the Unified Council of Electricity Distribution Companies (EDE), Celso Marranzini, presented this Wednesday a comprehensive plan for the modernization and efficiency of the electricity distribution sector, comprised of Edesur, Edenorte, and Edeeste, participating as a guest speaker and guest of honor at the monthly luncheon of the American Chamber of Commerce of the Dominican Republic (AMCHAMDR).

The plan, designed with the support of the Electric Cabinet and the backing of President Luis Abinader, will focus on reorganizing distribution companies, with the goal of reducing technical and commercial losses, modernizing infrastructure, and ensuring transparent and efficient management.

The recovery program provides for a substantial investment, with more than $650 million in financing secured from multilateral organizations, earmarked for network modernization and the expansion of telemetering infrastructure. Furthermore, a significant reduction in the EDE deficit is projected for 2027, enabling improved service quality and greater customer proximity.

He emphasized that, despite the sector's historical challenges, significant transformation is possible through the implementation of new technologies, grid rehabilitation, and the widespread installation of prepaid meters. The plan also includes a frontal war against electricity fraud, with the goal of restoring confidence in the system and reducing the financial deficit.

"We will make a significant effort to bring EDEs closer to customers, not only by improving service quality but also by facilitating access and convenience through facilities such as multi-service ATMs," Marranzini outlined in the context of the distribution companies' recovery strategy.

Other pillars of the recovery plan include restoring the role of the Attorney General's Office (PEGASE) in combating electricity fraud, ensuring that those responsible face the corresponding legal consequences, as well as the creation of a transitional law that prevents the seizure of EDEs, protecting them from the actions of "structured mafias" that seek to undermine the work we are doing. This law will be essential to ensuring the continuity of our reforms without external interference.

Marranzini also revealed that he has asked President Luis Abinader to issue a decree requiring all public sector employees to submit their energy bills within a specified period. "And how could we miss this excellent opportunity to ask AMCHAMDR, CONEP, and all their affiliated associations to do the same?" he added.

In his speech, Marranzini highlighted the government's achievements in the electricity sector, such as the elimination of the former Dominican Corporation of State-Owned Electric Companies (CDEEE), in compliance with the General Electricity Law of 2001. This measure has allowed for the consolidation of the electricity sector and the establishment of the Unified Council, which now focuses on the coordination and effective planning of the Electricity Distribution Companies (EDE). This effort has been crucial in avoiding delays and cost overruns that have hindered the sector's development in the past.

He also highlighted that transparency has been a fundamental pillar of the current administration, especially with the elimination of the practice of "uncuttable institutions," which has led to greater discipline in the payment of energy bills by government entities. This progress, along with the significant increase in installed renewable energy capacity, which went from 11.31% in 2019 to 221% in 2024, positions the Dominican Republic as a regional leader in the transition to cleaner and more sustainable energy sources. "With an installed capacity of 1,504 megawatts of renewable energy, including solar, wind, and biomass projects, the country continues to advance toward a more secure and reliable energy future," he expressed.

Marranzini concluded his speech with a call for unity and commitment from all sectors of society to achieve a Dominican Republic with an electrical distribution system that is a source of national pride.

For his part, Edwin De los Santos, President of the Board of Directors of AMCHAMDR, referring to electricity theft, stated: “At AmchamDR, we reiterate our support for the application of the law, without distinctions or privileges, for regulatory streamlining that allows for the introduction of new technologies and adjustments for the operational flexibility required by a system in transition, while we encourage proper sector planning that allows for the prioritization of investments in all its subsectors. Above all, we advocate for planning and awareness-raising regarding energy efficiency and conservation policies, as mechanisms to rationalize capital investments in the electricity subsector, which contribute to reducing the electricity sector deficit and accelerating sustainability goals.”

This luncheon was made possible thanks to the support of the member companies of the AMCHAMDR Elite Circle: AES Dominicana, Barrick Pueblo Viejo, Cervecería Nacional Dominicana, Citi, DP World, HIT Puerto Río Haina, Grupo Humano, Inicia, Grupo Martí, Altice Dominicana, Grupo Rica, Grupo SID, Grupo Punta Cana, Grupo Estrella, Grupo Viamar and Squire Patton Boggs.

AMCHAMDR Events