The electricity market in the Dominican Republic consists of three state distribution companies, a state transmission company and tens of generators, ranging from private to semi-public and public. Each company can focus exclusively on one of the abovementioned three activities except distributors, which may have a stake of up to 15% in power generators.
The General Electricity Law regulates all stages of production, transmission, distribution and supply of electricity, as well as the functions of the competent State agencies that oversee the energy sector. These organs are essentially the National Energy Commission (CNE), as tracer of sector policies and the Superintendence of Energy (SIE), as the regulatory body. To participate in the sector a grant from the SIE is required, which does not distinguish between domestic and foreign capital, but controls the prices charged to users, which vary by area.
A major advantage of the sector's exemption from taxes on oil purchased for electricity generation, as well as various tax exemptions in the area of renewable or alternative energy.