Public trust fund proposed to tackle energy losses

The Energy Institute at the Autonomous University of Santo Domingo (UASD) has unveiled a groundbreaking proposal to address the persistent issue of energy losses plaguing the Dominican Republic’s distribution company, Edeeste. The initiative, introduced during the panel discussion ‘Energy Loss Management in the Dominican Republic’ hosted by the Faculty of Engineering and Architecture, advocates for the establishment of a public trust fund. This fund aims to mitigate the financial strain caused by electricity fraud and non-payment, which have led to a structural deficit currently subsidized by the state. Dean Omar Segura Alcántara emphasized that reducing these losses is crucial for developing a sustainable, competitive, and socially equitable electricity system. The proposed trust fund would ensure transparency, continuity across political transitions, and access to international financing. Additionally, it would introduce pay-for-results contracts to drive efficiency improvements. The initial implementation is planned for the Eastern region, excluding Edenorte and Edesur. José Luis Moreno San Juan, another representative from the UASD Energy Institute, highlighted that a significant portion of revenues—73%—is allocated to generators, leaving distributors with limited resources to manage operations effectively.