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The Electric Sector

Electricity production and supply in the Commonwealth of Dominica is a monopoly of owned privately owned Electric Utility body known as the Dominica Electric Power Company (DOMLEC). DOMLEC is solely responsible for the generation, transmission, distribution and sale to customers and is operated as a vertically integrated company.

Lack of adequate government oversight and ineffective managerial strategies resulted in the continuing poor performance of the utility and within recent times, power generation has become a relatively expensive activity, resulting in excessive costs to consumers. The Transmission and Distribution networks were no better as the infrastructures on ground were far too inadequate to meet the technical demands of the system to satisfy acceptable operational criteria regarding losses, which again impact on prices to the consumer.

It was therefore not surprising that by 2003 when this present Administration came on board, one of the key thrusts of the Government’s economic reform strategy was to ensure the complete overhaul of the electricity sector leading to the setting up of several working committees specifically focusing on electricity and the acceptance that a National Electric Power Policy is urgently needed, which will define the framework for the electricity sector reform in Dominica.

This reform should lead to the unbundling of the privately owned monopoly, and further lead to the establishment of successor companies Electricity Generation companies, one Transmission company and a number of Distribution companies. The action will also lead to private sector participation in the fore-mentioned generation and distribution sectors and the operation of a number of Independent Power Plants in the country today.

The establishment in the Independent Regulatory commission (IRC) in 2006 is also in line with the Reform Programme.

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