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Luncheon British Chamber of Commerce Thursday, January 17th 2008 'La Fiesta' Ballroom Lounge, Renaissance Jaragua Hotel.

Power for Economic and Social Development - Who Pays? John Heath

   

With the support of the First International Week of Energy organizers, Power Energy Specialist, John Heath, an Independent Advisor from Adam Smith International, gave a very ample exposition on the electrical sector of the Dominican Republic and of the multiple problems that affects same, pointing out possible solutions. The speech was given within the frame of activities celebrated at the 1ra. Semana Internacional de la Energía, República Dominicana (SEIDE), promoted by the National Commission of Energy (Comisión Nacional de Energía - CNE) as other governmental and private organizations.

Heath has visited the Dominican Republic in different occasions as energy specialist and is very knowledgeable of the power generation reality of our country, having offered counsel in such an issue, both to the government as to the International Monetary Fund.

Previously, invited by the British Camera of Commerce, Heath participated in a similar energy related activity, conjointly with other international experts. On that occasion, the energy specialist insisted on the need to fight frauds and improving collections as the only alternative, in order to have power energy system be sustainable, in order to increase quality of energy systems as to eliminate governmental subsidies.

In his speech at the 1ra. Semana Internacional de la Energía, República Dominicana (SEIDE), directing his exposition to the ample public in attendance, Heath again emphasised the need to improve collections as to fight energy frauds, indicating that the contributors - those who pay their taxes - are the ones that are being loaded with the cost of energy.

In his dissertation, Mr. Heath was apologetic that the new Energy Law has not already been applied, one that is to penalize energy frauds, emphasising that it is still too high the percentage of energy being stolen in the Dominican Republic. He commented that this situation affects the financial stability of the energy sector and provokes blackouts, being the poor low bill clients whom suffer the most. Heath rekindled that according to World Bank's data for 2006, the Dominican Republic is still amongst the eight countries of the world which suffer greater power loss.

In that same order of idea, he also noticed about the lack of an alternative or contingent plan of the government subsidies policy, exposing the freezing of tariff which exposes the energy sector due to the increase of petroleum prices, which are not covered by the subsidies plan.

Amongst his conclusions the expositor emphasised that the access to energy is not cheap nor easy exiting solutions exists either. He expressed that although the best power system and the best technology are only an aid, they do not constitute by themselves a solution to the problematic experienced by the energy sector, one which will basically be dependant on obtaining the financial stability, and one which will only be possible if an effective tariff and collections policy is applied, conjointly with the elimination of frauds and energy thefts.

Heath also insisted on the need to elaborate a fix tariffs electricity social policy, stating that a much more financially viable or economical fix tariff is always a preferable option compared to subsidies, as this route only leads to social welfare.

Despite the difficulties that are still being confronted by the energy sector, the specialist maintains that these problems are salvageable, as long as a firm governmental policy, supported by collective commitment of the people, could allow the Dominican Republic to have stable energy services with more moderate tariffs.

Introductory words by Mr. Roberto Herrera, President of the British Chamber of Commerce, motivated the interest of the audience as to support speaker' dissertation and that of President Dr. Leonel Fernández, as to the signalisation of the energy issue, which he himself feels constitutes the most important challenge that is being confronted by the Dominican Republic.

On his introductory presentation, Mr. Herrera emphasized the initiative of Arístides Fernandez Zucco, Secretary of State, National Commission of Energy (Comisión Nacional de Energía), as to support the development of alternative energy projects in order to reduce petroleum imports, to promote cleaner energy as financially viable power generating plants.

Event attendees were diverse: governmental, diplomatic, energy sector, private institutions personalities, including international figures, as general public, whom filled at full capacity the 'La Fiesta' Ballroom converted into a Meeting & Luncheon Lounge for this event.
 

    


   

 
 
   
 

British Chamber of Commerce of the Dominican Republic ©2008
Tel.: (809) 616-2335  Fax (809) 616-2336

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