Referencias:
Ley 1-12, sobre la Estrategia Nacional de Desarrollo 2030.
Ministerio de Energía y Minas. 2020. Discurso Íntegro del Ministro Antonio Almonte durante la firma del Pacto Eléctrico. Recuperado desde: https://mem.gob.do/sala-informativa/noticias/discurso-integro-del-ministro-antonio-almonte-durante-la-firma-del-pacto-electrico/
Pacto Nacional para la Reforma del Sector Eléctrico 2021- 2030, del 25 de febrero del 2021.
Presidencia de la República Dominicana. 2021. Presidente Abinader define firma del Pacto Eléctrico como un acto de responsabilidad del Gobierno y los sectores participantes [Comunicado de Prensa]. Recuperado desde: https://presidencia.gob.do/noticias/presidente-abinader-define-firma-del-pacto-electrico-como-un-acto-de-responsabilidad-del
Superintendencia de Electricidad de la República Dominicana. 2021. Firma del Pacto Eléctrico [Comunicado de Prensa]. Recuperado desde: https://sie.gob.do/noticias/item/firma-del-pacto-electrico
Tejero Puntes, Suhelis y García, Pablo. 2021. Pacto Eléctrico se firma al tercero intento y abre el camino a la reforma del sector. Diario Libre (en línea). Recuperado desde: https://www.diariolibre.com/economia/pacto-electrico-se-firma-al-tercer-intento-y-abre-el-camino-a-la-reforma-del-sector-LE24646805[:en]February 25 of this year was a historic day for the electricity sector of the Dominican Republic. The National Pact for the Reform of the Electricity Sector was signed, to strengthen the transparency, efficiency, and institutional framework of the energy sector, through a regulatory and structural renewal of the existing legal and operational framework to date, after years of attempts have elapsed. failed.
As our Head of State, Luis Abinader, described on the day the Pact was signed, the adjustments that it entails are “necessary given the seriousness of the electricity sector.” Likewise, he expressed that it is necessary for the people to be aware that the Dominican energy industry is in deficit and that just to address such deficit, 58 billion pesos (in excess of US $ 1,000 million) had to be consigned last year.
As the subsidy is unsustainable over time, it was and is essential to carry out a restructuring of the system, where clear objectives are set to make the sector more efficient. In this sense, it can be asserted that the signing of the Pact definitely represents a historic event for the energy industry, since it opens the doors to precisely achieve two main pillars: i) The financial sustainability of the industry, by eliminating cost overruns and inefficiencies; and, ii) the promotion of the use of renewable sources with regard to the generation, transmission and distribution of energy which, in turn, will reduce environmental pollution and promote technological innovation to achieve this end.
It should be noted that since the enactment of Law 1-12 that proposes the National Development Strategy towards 2030, Article 35 expressly establishes the need to unite political, economic, and social forces in order to achieve a Reform. The electricity that allows solving the structural crisis in the sector. To achieve this, it expressly establishes the need to reach an agreement that “ensures the necessary predictability in the regulatory and institutional framework that enables the necessary investment in the energy that national development demands.”
Among the main lines of action proposed by this Electricity Pact, we can mention the liquidation mandate of the Dominican Corporation of State Electric Companies (CDEEE), the elimination of the multiple Boards of Directors that exist by adding the EDES to concentrate their functions in one only Board of Directors that governs all, and the implementation of audits to the EDES to promote the transparency and efficiency of the sector, among others. Likewise, the pact proposes the hiring of an external audit to inspect the execution of the construction of the Punta Catalina project.
Regarding EDES, this agreement includes the possibility that these companies subcontract other companies for the collection of invoices from their clients, and the Superintendency of Electricity must dictate within a period of 12 months from the signing of the agreement, the Applicable stipulations that allow to implement this new possibility.
Likewise, this agreement establishes the application of a program that establishes and achieves objectives for the reduction of losses of the electrical networks and operating costs, establishes the expectations of collections for the service provided, as well as the application of new rates and their revisions every 3 months.
As stated by the Minister of Energy and Mines, Antonio Almonte, in his speech on the day of signing the Agreement, it should be noted that several of the proposals have already been applied since August 2020, that is, prior to the signing of the Agreement. , being able to manifest itself in the “creation of the CDEEE Liquidation Commission through Decree 342-20, the elimination of two of the three councils of the distributors, the elimination of the council of the UERS, the launching of the international tender for the audit of the construction process of Punta Catalina, the financial audits of the three distribution companies and the preparation for the launch in the next few days of an international public tender for the contracting of energy and power for 800 MW together with the construction of a terminal gas company in the Bay of Manzanillo, Montecristi, among other actions.”
Likewise, the Ministry of Energy and Mines deposited with the Legal Consultancy of the Executive Power the project for the modification of the laws that will allow the full transfer of the National Energy Commission to the Ministry of Energy and Mines, in compliance with another of the guidelines outlined in the Electricity Pact. This action is based on being able to achieve cohesion at the national level that allows the establishment of unified and coherent regulations and policies to achieve the objective of strengthening the electricity sector, even contemplated in the National Development Strategy of 2030.
Finally, one of the greatest guarantees that this pact has is the determination of a regime of consequences for the parties that do not observe it. To revitalize the electricity sector, the country depends on us not to allow this great initiative to remain in paper and ink.
However, it should be noted that although this is a piece that will bring great contributions to the sector, it is not perfect, in fact, among the sectors that discussed the Electricity Pact, 14 disagreements were presented, that is, proposals that could not be agreed during discussions. Most of these disagreements are related to aspects related to the operation and administration of Punta Catalina, while the others are related to the payment to users for non-served energy, on isolated systems to the National Interconnected Electric System, on aspects of the restructuring of the CDEEE, the use of land for public lighting and on the revision of the contracts for the privatization of transmission networks.
Likewise, other vicissitudes that accompanied the trajectory of this Pact, is the disagreement on the part of the social sector that is part of the Economic and Social Council (CES) when considering that they were not taken into account. This resulted in the filing of an amparo appeal before the Superior Administrative Court against the signing of the same, however, it was declared inadmissible as the contentious administrative remedy was considered competent instead of the amparo. However, the rejection in the courts of the appeal, the current Minister of Energy and Mines, Antonio Almonte, recognized in a certain way the validity of part of the criticisms and was shown in statements of last March 03, 2021, in favor of calling to a round of discussion to strengthen the pact and achieve effective improvements in the sector.
At DMK Abogados, a leading firm in the Dominican Republic, we have more than 20 years providing comprehensive legal advice providing the highest quality standards. We have a full, dedicated, and experienced team of lawyers, capable of offering you specialized attention in the development of traditional or renewable energy projects such as wind, solar, biomass and biofuel energy, the incentive law of this sector in the Republic Dominican.
By: Maria Mercedes Redondo
Paralegal in DMK Abogados
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