The Barbados Light & Power Company (BL&P) Limited has submitted an application to the Fair Trading Commission (FTC) seeking a review of the fuel clause adjustment (FCA), which it says could save customers over $3.7 million.
A notice this week from the FTC said the utility company was seeking to recover costs associated with the commissioning of a 5MW energy storage in St Lucy, and it was seeking to do so by way of the FCA.
“The Barbados Light & Power Company Limited has submitted an application to the Fair Trading Commission for approval to recover the costs associated with the commissioning of a 5MW energy storage device via the fuel clause adjustment. This application will result in a review of the fuel clause adjustment decision dated October 11, 2013 and is made in accordance with Section 16 of the Utility Regulation Act, Cap 282 of the Laws of Barbados,” the FTC said.
The fuel clause adjustment, which is monitored by the FTC, is a mechanism designed to recover the cost of fuel used in the generation of electricity. It adjusts the price that customers pay for each kilowatt-hour of electricity as the cost of fuel used to generate electricity rises and falls.
The regulatory body said those wishing to intervene in the proceedings have until 4 p.m. on Monday, September 11, 2017 by way of a letter.
The fuel clause adjustment has been averaging just over 22 cents per kWh.
In a statement to Barbados TODAY Monday afternoon the utility company said the application to the FTC was another demonstration of the company’s commitment to facilitate greater penetration of renewables and reduce the cost of electricity to customers.
“The installation of the battery storage will result in no additional cost to customers and furthermore, is estimated to save customers over $3.7 million in fuel charges,” the BL&P said.
“The company remains committed to its plan to invest in ways to make electricity generation cleaner and intends to work with all stakeholders to be a part of the energy solution for Barbadians,” it added.
BL&P commissioned study released in early 2015 had suggested that a 5MW or 12MW energy storage could have significant economic benefits, reducing thermal fleet production cost by about $5 million or $11 million per year.