Regulator suggests generation, distribution privatizations

The Dominican Republic's power regulator CNE will submit suggestions for power sector reform, including the idea of the state privatizing its remaining power generation and distribution stakes, to the government this week, the government news service quoted CNE director Antonio Almonte as saying. Reform plans are against vertical integration as it would create a privately owned monopoly which could result in greater harm to the power sector. The Dominican Republic sold 50% stakes in distributors and generators in 1999. The market structure that followed was a total failure and eventually Spain's Unión Fenosa handed back its two distributors, Edesur and Edenorte, in 2003. One of the most pressing points of the reform is that Edesur and Edenorte return to private ownership, Almonte said. President Hipólito Mejía will decide whether to act on the proposals during the last days of his government, or leave it to president-elect Leonel Fernández when he takes office on August 16.