The electricity rate frozen until further notice

DOMINICAN REPUBLIC - In Brief 21 Jul 2022 by Magdalena Lizardo
According to the Electric Pact, a new quarterly adjustment of the electricity rate was required in July-September, which was issued on June 30 by the Superintendency of Electricity (SIE). However, this increase was rescinded by the SIE since two days ago the government asked the Economic and Social Council to review the Electric Pact. The non-adjustment of the electricity rate in July-September 2022 implies a monthly subsidy of DOP2,810.4 million, that is, DOP8,431.2 million for the quarter (USD 154.5 m). Taking into consideration that during the 1st semester the government  spent USD625.4 m in subsidies, equivalent to 0.56% of the projected GDP for 2022, and given this week's decision, it is to be expected that the subsidies will continue unless the price of oil and other commodities collapse. The government is trying to reduce the risks of protests such as those that have occurred in Panama and Ecuador recently.

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