BY SHARON AUSTIN | FEB 15, 2023
Hearing Chairman and Fair Trading Commission (FTC) Deputy Chair, Dr. Donley Carrington and CEO of the FTC, Dr. Marsha Atherley-Ikechi listen to questions from the media at today’s press conference. (GP)
The Fair Trading Commission (FTC) has issued its Decision and Order on the Barbados Light and Power Company Limited’s (BLPC) Rate Review Application.
And, according to Hearing Chairman and Deputy Chair of the FTC, Dr. Donley Carrington, the BLPC must submit a Compliance Filing to the Commission within three weeks.
Dr. Carrington made the disclosure today during a press conference, at the FTC’s Green Hill, St. Michael location, where he delivered the Commission’s decision on the BLPC’s application for review of electricity rates.
The Hearing Chairman said: “The application would have had a number of attributes which would have led to the conclusion of final rates. Since the Commission has not agreed to all of those attributes as set out in the application, BLPC now has to make certain adjustments to some of the items identified in the decision….
“When they complete the calculations, they would submit a Compliance Filing report to us and then the final rates will be determined…. [We] will issue a Final Order with the approved rates shortly thereafter.”
Dr. Carrington explained that once BLPC submits the report, it would be evaluated to ensure the items in the Order were adhered to, and the Final Order containing the new rates would be issued.
Some of the Commission’s determinations are as follows:
- The rate of return on the rate base of 8.79 per cent is denied. The Commission approves a rate of return of 7.47 per cent to be used in the computation of the revenue requirement.
- The request to have the new rates take effect from April 1, 2022, is denied. The Commission will issue the effective date of the approved rates in its Final Order. Until then, interim rates will continue to be billed. Refunds to customers, if any, will be addressed in the Final Order.
- BLPC’s request to recover the undepreciated portion of the 5-megawatt energy storage device and its operating expense in base rates is denied. The costs related to the energy storage device will continue to be covered through the Fuel Clause Adjustment.
- To have a financial capital structure of equity at 65 per cent and debt 35 per cent in determining its rate of return is denied. The approved structure is equity at 55 per cent and debt at 45 per cent for rate-making purposes.
- The Commission has accepted BLPC’s request to use a depreciation rate of four per cent for the Clean Energy Bridge; to recover costs related to renewable power purchases and expenses related to fuel through two separate riders, and proposed service charges.
Full details of the Commission’s Decision and Order may be found at ftc.gov.bb.
