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Interior de un hogar al anochecer con contador eléctrico, aire acondicionado y nevera
Hogar con contador eléctrico y electrodomésticos, imagen alusiva al consumo eléctrico. · Imagen generada para EPM

Government keeps electricity tariff frozen and strengthens targeted subsidies

The Dominican Government keeps the electricity tariff frozen since 2022 and strengthens targeted subsidies against international prices.

--- The context --- The Dominican Government is keeping the electricity tariff frozen, unchanged since 2022, and strengthening targeted subsidies to protect household finances from international energy and fuel prices. President Luis Abinader and Energy and Mines Minister Joel Santos explained the policy during LA Agenda Semanal. --- The facts --- According to the presentation, tariffs have not increased. The structure is divided into four consumption tiers: those who use between 0 and 200 kilowatt hours pay RD 6.09, but exceeding 700 kilowatt hours raises the tariff to RD 13.09 for all kilowatt hours consumed. --- The positions --- From a social protection perspective, the freeze works as a shield against external shocks. At the same time, the jump between tiers explains why some users perceive increases during periods of higher consumption, even though the tariff itself remains unchanged and every tier still receives a state subsidy. --- What remains unknown --- It remains unclear how the effect of targeted subsidies is distributed in practice across the tiers and what happens to households close to the upper limit. Whether the four-tier structure will be adjusted was not detailed either. --- Unanswered questions --- How is it ensured that targeted subsidies benefit those who consume least the most? What margin does a household near 700 kilowatt hours have to avoid jumping a tier? Will the freeze hold while international prices keep pressing? --- EPM analysis --- The key figure is the gap against the reference or market tariff, of about RD 15.50 per kilowatt hour. A 10% increase in consumption can mean a 30% to 40% rise in the final cost if a person jumps to the upper tier. 📌 EPM Take: In EPM's view, the freeze sustained since 2022 protects household income against international volatility, but its real benefit depends on every household understanding the tiers. With the market reference at RD 15.50 and every tier subsidized, the policy brings relief today, while leaving open the debate over its targeting and over how to prevent slightly higher consumption from raising the final bill disproportionately.
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