The electricity tariff debate: Between financial sustainability and the citizens’ pockets
The Dominican electricity sector is at the center of a complex economic discussion. The 2025-2028 Multi-Year National Public Sector Plan has brought to the table the possibility of resuming tariff adjustments that have been paused since April 2022. Although the Minister of Energy and Mines, Joel Santos, has been emphatic in pointing out that no definitive decision has been made for the moment, the intention to balance the tariff with the actual cost of the service is generating uncertainty among the population.
The public’s concern is not minor. While authorities analyze the sustainability of the system, numerous Edesur users have reported significant increases in their bills, some of up to 200%, which has intensified social unrest in the face of a possible generalized readjustment.
Figures that expose the crisis of the distributors
The numbers behind the electricity crisis are overwhelming and explain the pressure on public finances. Over the last decade, specifically between 2014 and 2024, the State has had to inject RD$505.629 billion to compensate for the distributors’ deficit. Just this year, up to August 14, the electricity subsidy reached RD$78.8 billion.
- Edeeste: 56% losses.
- Edesur: 31.6% losses.
- Edenorte: 26.1% losses.
Overall, EDE losses stood at 38.9% as of last May. Given this scenario, expert voices, such as that of researcher José Luis Moreno de San Juan, warn that the tariff update is a necessary technical measure due to the impact of fuel costs on a tariff scheme that has not been modified in more than two years.
Acknowledging that the rate needs a review does not imply shifting the burden of operational inefficiency onto those who pay their bills punctually every month.
Efficiency before new positions
The prevailing stance is clear: before requesting greater economic sacrifice from households and the business sector, distribution companies must present tangible results. The reduction of technical and non-technical losses, better metering, preventive maintenance, and service optimization are pending tasks that cannot be postponed.
The current model, where nearly four out of every ten units of energy are lost, is unsustainable. Any future adjustment, if it comes to fruition, must meet fundamental conditions for the peace of mind of society:
- It must be gradual and transparent.
- It requires a detailed technical explanation for the population.
- It is essential to implement protection mechanisms for households in conditions of greater vulnerability.
- The Government must establish clear, public, and verifiable management goals to improve service efficiency.
Ultimately, the State’s challenge is twofold: to clean up the electricity deficit without this meaning a blank check for the distributors, while simultaneously guaranteeing that the solution to the problem does not fall exclusively on the users who already sustain the system with their constant payments.
