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For about 40 years, the Dominican Republic has undergone a severe crisis in the electric power sector. Experts have come and gone and the crisis gets worse and worse. What’s different in the Dominican Republic? I conjecture that we might have been ahead of the world for quite a while.

At this moment there is a great opportunity to show that we are ahead. From November 6 to 16, the International Monetary Fund is present in the Dominican Republic. To do it, I have suggested... to continue reading, please hit the link to the Grupo Millennium Hispaniola version of  Customer oriented electricity.

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member photo This comment and the next are taken from the MENTIRAS Y VERDADES - VERDADES A MEDIAS Facebook group. http://www.facebook.com/groups/239056806198729/

A 2 personas les gusta esto: John Mirador and Miriam Then

John Mirador:

There's a large proportion of the DR population who live below the poverty level where they're unable to pay for electricity. The IMF would want this population cut off from the grid. Then there'sthe question of massive fraud by big business and government, and the IMF would push for higher electricity rates raised to make up for the current deficit...

Miriam Then:

I thought that I couldn't understand the Dominican energy crisis because of lack of dominance of the language.... Now, I read this in English.... And I'm still in the DARK!

John Mirador:

Miriam, We're all in the DARK! ; )

Miriam Then:

That is comforting to know John, I started to feel like an idiot! Ja ja ja ja!

José Antonio Vanderhorst-Silverio:

Thank for being still in the dark. Maybe I will shed some light. However, I know there are a lot non trivial issues involved.

Because there is not storage in large capacity yet, the whole system of electricity is supposed to have sufficient redundant supply security to give customers commercial quality service. One approach is to have enough running generating capacity just in case the largest generating unit fails all of the sudden. That way, no one notices the failure.

The idea was to develop an expansion plan to have enough capacity for such a situation. In Puerto Rico they have reserves right now above 50 per cent. However, here in the Dominican Republic, we have always been behind. The thinking of decision makers have made thing a lot worse.

From a systemic point of view under the regulator orientation, poor customer actually being used as a provider of system supply security to keep the whole system running without paying them anything. Under a customer orientation, a vibrant supply security market emerges where those that need higher supply security, like for meeting digital devices, we buy from the poor. The rich and the poor help keep the system running.

8/11/12 1:18 p.m.
# Posted By Jose Antonio Vanderhorst-Silverio | 11/8/12 11:24 AM | Report This Comment as Foul/Inappropriate
member photo Miriam Then:

Thanks for your response Jose, but I have an inquiry. You say because of the thinking of "decision makers" have made things worse. First let me ask you who are these decision makers? Are they politicians? Are they experts in the field? Are they still in charge? What's the accountability? I have real issues with government bureaucrats, that feel the answer to every problem is to throw more money at it, and expect somehow, that things will just get solved that way.

John Mirador:

José, you skirted the most important issue, which is cost. We already have the highest electricity rates in the hemisphere, maybe of the entire world. Do you know that 37 percent of electricity is lost in the transmission lines and accessory systems? What about the tremendous graft going on with the purchase of fuel supplies for the generators?, etc., etc.

José Antonio Vanderhorst-Silverio:

Miriam, see the quote "President Danilo Medina says that the International Monetary Fund (IMF) is "fundamentally responsible" for the financial crisis that affects the Dominican electricity sector, because the specialists from the multilateral financial agency have always believed that the energy problem could be resolved by increasing collections, addressing the technical losses and reducing energy theft." The accountability is promises, promises, promises. I sympathize with your issues on bureaucrats.

José Antonio Vanderhorst-Silverio:

John, there are very large coordination saving by developing the new customer oriented electricity model. This is a proposal that customers are not expecting, but they love.

Miriam Then:

How is that? Jose, is no a rhetorical question. I would like to see the data that supports what he is saying. Otherwise, it is my personal believe that he lacks credibility.

José Antonio Vanderhorst-Silverio:

Miriam, there two things. One it is actually the experts, for example, retained by the World Bank, that suggested to the Government and the IMF to use a Customer Recuperation Index (CRI) to decide how to do the rationing of electricity, which at the time I opposed strongly. The other is in the post - there is no blame.

Miriam Then:

This is unrelated to DR, yet is about power grids, I thought you guys may find interesting. Hurricane Sandy and the limits of the smart grid http://www.pbs.org/wgbh/nova/insidenova/2012/11/hu...

José Antonio Vanderhorst-Silverio:

Miriam, the Smart Grid is actually the opposed approach to the Smart Market of customer oriented electricity. The experience we have to respond to hurricanes is great. The smart grid is regulator oriented electricity and thus is limited, because a regulator is unable to provide the differentiating service customers need.

8/11/12 1:18 p.m.
# Posted By Jose Antonio Vanderhorst-Silverio | 11/8/12 11:24 AM | Report This Comment as Foul/Inappropriate

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