Electricity rates update

An application for increased electricy rates has been made to the Fair Trading Commission which proposes the highest increase for domestic consumers.
It is proposed that consumers using 50 kilowatts monthly (at the bottom of the scale) would pay an increase of $3.47 and those at the top using 500 kWh would pay an additional $11.04. In between there are proposed rates for citizens using 100 kWh ($3.50), 150 kWh ($8.46), 200 kWh ($8.83), 300 kWh ($9.57) and 400 kWh ($10.30).
The company has contended that businesses have been paying a greater share of the cost of providing electricity and is seeking to adjust this so domestic consumers pay a larger share than they have in the past.
As a result the power company is proposing to increase the Rate of Return it makes from the Domestic side of the market from the current 2.58 per cent to 7.82 per cent, which is the single largest increase of the five categories.
So rather than the current return of 4.1 million dollars it is seeking to earn 12.6 million dollars from its application.
The likelihood of an electricity rate increase by October coincides with pending higher telephone rates of four per cent.
Armed with the above information and our electricity bills it is possible to calculate what our new monthly bills would be if the application was accepted without change. This is particularly useful for persons at the bottom of the income ladder such as pensioners.
Hallam Hope
caritel@hallamhope.com

Electricity rate hearing

If Barbados Light & Power gets an anticipated rate increase this year then we can add, if memory serves me correctly, telephone rate increases of four per cent to those after August. Latest information is that an application from BL&P will be with the Fair Trading Commission within 10 weeks. So consumers do not have much time to galvanise themselves as Intervenors. Some good news though is that at least one organisation is seriously considering approaching the Office of Public Counsel. Although the OPC no longer has the experience of Barry Carrington who has moved on to the Ministry of Energy it does have some resources. And I repeat : this will not be an across the board increase in electricity rates. BL&P has made it clear that it considers that business has been bearirng the burden of electricity rates for consumers and this should change. BL&P has been quite transparent in that it has been meeting with consumer bodies and has been frank in their discussions. Kudos to them but these are still very difficult times, breadwinners are out of work for months, prices are still on the rise and life is harder for the more disadvantaged among us. Many are just holding on.