Dominican Electricity Crisis: A Solution?

A technician from one of the state CDEEE companies. On average Dominican companies suffer from more than one blackout each business day. (Photo: CDEEE)

CDEEE headquarters in Santo Domingo. The CDEEE needs more than $1 billion a year in subsidies to cover its losses due to inefficiency and theft. (Photo: CDEEE)

The Dominican government plans to reach a solution to its costly electricity crisis, which undermines the country's competitiveness.


SANTO DOMINGO – The Dominican Republic is expected to have Latin America’s second-highest economic growth
this year, but the country remains one of the region’s worst countries in electricity service.

Blackouts remain common, especially in capital Santo Domingo.  The crisis especially impacts poor neighborhoods, but also several parts of the city are hit. Even the area where the presidential palace is located has seen several major blackouts the past year.

As a result, the economy is likely to lose a significant amount of lost productivity while local and foreign companies alike complain about the additional cost of investing in back-up generators and power plants. Meanwhile, companies and consumers alike lament the high costs of electricity, made even worse by the uneven supply.

“The electricity sector is probably the epitome of the badly functioning public services in the Dominican Republic,” The World Bank said in a recent report.  “Although the service has improved slowly in recent years, on average electricity service is not available 20 percent of the time.”

A typical Dominican company suffers from ...

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Keywords: ADIE, AES, CDEEE, CEPM, Danilo Medina, Hipolito Mejia, Inter-American Development Bank, Leonel Fernandez, Punta Cana, The World Bank