Dominican Republic Electricity Subsidy Hits US$1.47 Billion in Nine Months
DOMINICAN REPUBLIC · ENERGY
Key Facts
- —The country The Dominican Republic shares the Caribbean island of Hispaniola with Haiti. It has about 10.8 million people and is best known abroad for its beach resorts.
- —The background Three state-owned companies deliver most of the country’s electricity. They lose almost four of every ten kilowatt-hours they buy, and the central government covers the resulting cash gap every month.
- —Why now Budget office records published by the newspaper Diario Libre on 2 October show how much of this year’s allocation is already gone, as Congress weighs the 2027 budget.
- —What happened Transfers reached RD$88.3 billion (about US$1.47 billion) between 1 January and 25 September 2026, 19.7% more than a year earlier and 92.8% of the full-year budget.
- —The numbers The allocation was raised from RD$92.5 billion to RD$95.2 billion (about US$1.54 billion to US$1.58 billion). Only RD$6.9 billion (about US$115 million) is left for the final three months.
- —What it means for you Household bills do not change because of this figure. It shows where public money goes: the subsidy equals 77% of health spending so far.
- —Still open Whether the government raises the allocation again or slows the transfers. Diario Libre’s report carried no government comment.
The Dominican Republic spent RD$88.3 billion (about US$1.47 billion) on its electricity subsidy between 1 January and 25 September 2026. That is 19.7% more than in the same period of 2025, according to the government’s budget office.
With three months of the year left, the transfers have used 92.8% of the full-year allocation, Diario Libre reported on 2 October. The cause is an old one: the state power distributors lose almost 40% of the energy they buy.
What the subsidy pays for
Most Dominican homes and businesses get their power from three state-owned distribution companies, known locally as the EDEs. Edenorte serves the north, Edesur the south and Edeeste the east.
The EDEs buy electricity from generating companies, including private ones, and sell it on to customers. When what they collect falls short of what they owe, the central government covers the gap with monthly transfers.
Those transfers are what the budget calls the electricity subsidy. All conversions here use the Central Bank of the Dominican Republic’s reference rate of 30 September 2026, 60.08 pesos per US dollar.
The numbers through 25 September
The Directorate General of Budget (Digepres), the Finance Ministry’s budget office, recorded transfers of RD$88,316.8 million (about US$1.47 billion) by 25 September. The government first budgeted RD$92.5 billion (about US$1.54 billion) for the year, then raised it to RD$95.2 billion (about US$1.58 billion).
That leaves RD$6.9 billion (about US$115 million) for October to December.
The monthly average so far is RD$9.8 billion (about US$163 million). At that pace, the remaining money covers less than one month.
Diario Libre calculates that if the average holds, the year will close above RD$117 billion (about US$1.95 billion). That is the newspaper’s extrapolation, not an official forecast.
Transfers peaked in March at RD$11.4 billion (about US$189 million) and were lowest in January at RD$7.2 billion (about US$120 million). Over the nine months they rose by RD$14.6 billion (about US$242 million) compared with 2025.
For scale, the subsidy so far equals 77.2% of what the central government spent on health services, RD$114.4 billion (about US$1.90 billion). It equals 38% of education spending, RD$232.1 billion (about US$3.86 billion), over the same period.
Why the bill keeps rising
The main driver is power that is bought but never paid for. By the end of July, the distributors had lost 39.2% of the energy they bought, against 38.2% a year earlier.
These losses measure the gap between energy bought and energy billed or recovered. They include technical losses on the network and non-technical ones, such as unmetered or illegal connections.
Edeeste lost 56.5% of its energy, Edesur 31.9% and Edenorte 26%. The figures come from the Ministry of Energy and Mines’ performance report, cited by Diario Libre.
In plain terms, Edeeste bills for less than half of the electricity it buys. Losses rose at all three companies in the first half, compared with a year earlier.
What is improving
Circuits with power 24 hours a day rose to 359 in July from 324 a year earlier. That is 44.4% of all circuits, according to a ministry report cited by Revista Mercado.
The weakest circuits, which get about 14 hours of power a day, fell to 294 from 320. The distributors also raised capital spending by 25.6% in the first half, to US$115.6 million.
The improvement is uneven. Edeeste, the company with the highest losses, cut its investment by 2%, to US$30 million, while Edenorte raised its spending by 69.1%.
Longer supply hours and lower losses do not automatically move together, Revista Mercado noted. A circuit can have power all day and still lose money for the company that runs it.
The wider budget
The subsidy weighs on public finances that are already stretched. Interest on public debt had overtaken education spending by mid-September, as The Rio Times reported.
The 2027 budget sent to Congress projects a deficit above RD$327 billion (about US$5.44 billion), or 3.4% of GDP. The 2026 budget was approved with a deficit of 3.2% of GDP.
Those figures come from an analysis by Crees, a Santo Domingo economic research centre, published in Diario Libre on 1 October.
Crees added that the 2026 deficit would be larger still without the distributors’ unpaid bills to private generators. That debt lets them draw less from the Treasury for now.
What comes next
At this year’s average pace, the RD$6.9 billion (about US$115 million) left covers less than a month. Either the allocation rises again before December, or the transfers slow down.
The figure is a budget measure, not a supply warning, and nothing in the budget data changes household tariffs. The RD$117 billion (about US$1.95 billion) year-end total is a projection, not an outcome.
The long-term test is losses. As long as four of every ten kilowatt-hours go unpaid, the subsidy will keep growing with the cost of power.
Frequently Asked Questions
What is the electricity subsidy in the Dominican Republic?
It is the money the central government transfers each month to the three state-owned power distributors. It covers the gap between what they pay for electricity and what they collect. By 25 September 2026 it totalled RD$88.3 billion (about US$1.47 billion).
Why do the distributors need so much money?
They lose a large share of the energy they buy. By the end of July 2026 the three companies together lost 39.2%, and Edeeste alone lost 56.5%. The figures come from the Ministry of Energy and Mines.
Does this affect power supply for residents and visitors?
Not directly. In July 2026, 44.4% of circuits had power 24 hours a day; the weakest circuits received about 14 hours. Supply depends on the area, so residents should ask about it before renting.
Will the government spend more than it budgeted?
Probably. Only RD$6.9 billion (about US$115 million) remains, less than one month at this year’s pace. Diario Libre projects a year-end total above RD$117 billion (about US$1.95 billion), but no official revision has been published.
Sources: Diario Libre, electricity subsidy through 25 September, citing Digepres records, 2 October 2026, Diario Libre, distributor losses in the first half, citing the Ministry of Energy and Mines, 8 September 2026, Revista Mercado, 24-hour circuits and losses, citing the Ministry of Energy and Mines, 25 September 2026, Diario Libre, Crees analysis of the 2027 budget, 1 October 2026, Central Bank of the Dominican Republic, reference exchange rate, 30 September 2026 (60.0783 pesos per US dollar). All retrieved 2 October 2026.
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.
Read More from The Rio Times