Dominican Republic to spend 62 Billion pesos on electricity subsidies

The Dominican government allocated in the budget for this year 59 billion pesos for the subsidy of the electricity sector, a reduction of 12 billion pesos less than last year and 50 billion less than in 2019.

The Minister of Energy and Mines, Antonio Almonte, explained that the last government in 2019 transferred 109 billion pesos for the subsidy of that sector, and that in 2020 the amount was reduced to 71 billion pesos despite the fact that the budgeted amount was 30 billion and 33 billion pesos in both years.

He said that the difference of this administration, with the previous government, is that they are projecting to spend the same amount budgeted, including the supplementary budget. The projection for this year is 59 billion pesos.

“This year, what was originally budgeted was 50 billion to the electricity subsidy, and with the re-estimation through the supplementary budget, we have projected 59 billion pesos, that is, 12 billion less than last year and 50 billion less than 2019,” he detailed.

Engineer Almonte cited that the past administration in 2019 budgeted as subsidy spending 30 billion pesos, but ended up paying 109 billion, money that was taken from a line of credit.

“The past administration took from a credit line of 30 billion, also taking more than 20 billion in a payment agreement to the generators, which closed the year owing it, and at the end of the year another 30 billion for payment of the generators, that is, it ended up paying 109 thousand, he emphasized.

The official pointed out that with this same practice operated the past government during 2020, budgeting 33 billion pesos for electricity subsidy expenses, but at the close of the year that amount was brought to 71 billion.

“We put in the budget, re-estimated for this year, 59 billion pesos, because that’s it and that’s it, period, those put 30 billion and ended up with 109 billion,” Almonte maintained.

He clarified that in this administration there is no debt with the generators, because it has been adopted the custom of settling the debts with them, and that for this reason the blackouts have disappeared, being supplied at present 98 and 99 percent of the energy needed.

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