Dominican Republic Projects RD$100 Billion in Power Subsidies

The Dominican Republic expects to spend approximately RD$100 billion on electricity subsidies by the end of 2026, President Luis Abinader announced, highlighting the government’s efforts to limit the impact of international energy prices on households and the wider economy.

The projected expenditure forms part of a broader package of public support measures that includes subsidies for fuels, social assistance and agricultural inputs. The figures were presented by Abinader and Energy and Mines Minister Joel Santos during an appearance on the weekly program La Agenda Semanal.

Electricity Rates Have Remained Unchanged Since 2022

Abinader and Santos defended the decision to maintain electricity rates at their existing levels, stating that regulated tariffs have not changed since 2022. According to the minister, differences in household bills can reflect consumption levels and the applicable rate per kilowatt-hour rather than a general increase in electricity prices.

Santos said subsidized electricity rates range from RD$6.09 per kilowatt-hour for consumption of up to 200 kWh to RD$13.09 for customers using more than 700 kWh. The market reference rate, by comparison, stands at approximately RD$15.50 per kWh, according to the figures presented by the government.

These differences mean that households with higher electricity consumption may face larger bills even when the overall tariff structure remains unchanged. The government has also attributed part of the increase in residential electricity use to hotter weather and the growing availability of household appliances.

Government Plans Additional Subsidies for Fuel and Social Programs

Electricity assistance is expected to account for the largest amount among several major subsidy commitments outlined by the president. The government also projects spending around RD$40 billion on fuel subsidies, between RD$35 billion and RD$36 billion on social programs and transfers, and RD$2.2 billion on fertilizer subsidies.

One of the social assistance initiatives highlighted was Bono Luz, which provides electricity-related support to approximately 617,000 families. The program’s estimated investment is RD$3.7 billion, according to the figures disclosed by the government.

Together, these allocations reflect an effort to ease cost pressures on households and support selected sectors of the economy. However, the projected amounts also represent a substantial commitment of public resources, making energy costs and subsidy spending important considerations for the government’s 2026 finances.

Dominican Republic’s Electricity Generation Mix Has Changed

Santos also pointed to changes in the country’s electricity generation mix, particularly the reduced role of fuel oil. According to the data presented during the program, fuel oil’s share of electricity generation fell from 88% in 2000 to 9% today.

The shift marks a significant change in the composition of the country’s power supply. Nevertheless, the government’s subsidy projections show that electricity affordability remains a major policy concern as international energy prices and domestic consumption influence the cost of providing power.

For residents and businesses, the practical distinction is between the price charged under the existing tariff structure and the broader cost of supplying electricity. Government subsidies help bridge that gap, while consumption levels continue to influence individual household bills.