For the Minister Decembrethe billing rate and the recovery rate are the two most important points

Haiti News FLASH: Towards the end of subsidies to EDH?

Friday, March 8, in a press conference, Ronald Decembre, the Minister of Finance announced actions at the level of the Electricity of Haiti (EDH) so that the State company, no longer need from 2 to 3 years to receive the "10 billion" Gourdes subsidies that pays the Treasury every year to fill [partially] the chronic deficit of EDH.

For the Minister Decembrethe billing rate and the recovery rate are the two most important points which explains the deficit of the EDH. Regarding the billing rate he pointed out that the EDH charged the Kw 12 Gourdes while the cost of production of a Kw was 24 Gourdes... Without explaning on the low recovery rate, consumers at all levels do not not paying their bill, he asserts in addition to the need for a reform of the Electricity Company "If we do not proceed to increase the billing rate and recovery rate, EDH will still need support of the Treasury."

Recall that the Minister failed to specify that in December 2018, according to information from the Commercial Directorate of Electricity of Haiti (EDH), for the metropolitan area on 136,589 invoices issued, there was a total of 16,654 payments or a rate of 12.19%.

Recall also that in November 2018 the debt of the EDH amounted to 17 billion gourdes (± 212 million dollars), far from the 10 billion gourdes mentioned by the Minister.

Government debts: 5.69 billion Gourdes:
3.7 billion Gdes: Public lighting;
697 million Gdes: Autonomous organization in Port-au-Prince and the provinces;
1.3 billion Gdes: Public bodies.

Debts of individuals, businesses and industries: 11.2 billion gourdes:
more than 9 billion Gdes: Residences in Port-au-Prince and provinces
1.2 billion Gdes: Shops in Port-au-Prince and provinces;
1 billion Gdes: Industry.

Décembre is careful not to explain how doubling the price of Kw and how it will force consumers to pay their bill. Recall on this last point, that the disconnection campaigns for bad payers, initiated under the Martelly Government and which continue under the Moïse Government, have changed nothing on the financial situation of the EDH. Illegal reconnection continues at the same pace as legal disconnections...

Meanwhile, electricity rationing continues due to lack of fuel, low water levels in the dams and electrical loss on outdated transmission lines and equipment, and blackouts are multiplying, while President Moïse does not speak loudly of his election promise to electrify in 2 years the country 24 hours a day. Only the EDH multiplies its advices to explain to the population why the electric production decreases and the necessity to pay their bill without great result...