BL&P seeks FTC green light to lend

Light, power, and finance may become the three key services of Barbados Light & Power (BL&P), if the Fair Trading Commission (FTC) approves an application by the electricity company.

BL&P, which is wholly owned by Canadian electricity giant Emera, wants the FTC to grant it permission for a pilot project to lend domestic customers $12,000 or more, to upgrade to energy efficient systems including the installation of solar photo voltaic (PV) packages, air conditioning, LED lighting, among others.

The company is seeking permission to bill borrowers through their monthly electricity bills.

BL&P also wants to introduce a monthly surcharge and insurance to protect customers’ large equipment like refrigerators and freezers from power surges.

In its lengthy application, BL&P seeks to introduce a pilot project called the Customer Energy Savings Financing Programme (CESF) for certain energy efficiency (EE) and renewable energy (RE) projects.

According to the filing, the company has set aside $300 000 initially, to lend to customers in the two-year project, as the company seeks new revenue streams in an evolving and more competitive market.
BL&P customers will be required to provide up to a maximum of 15 per cent of the cost of the energy improvement technology.
“[BL&P] will advance customers the funds to complete certain EE retrofit and RE installation projects such as LED lighting, energy efficient air conditioner units and solar PV systems.

“In addition, customers can also access funding to complete meter socket base replacements and uninterruptible power supply (UPS) devices. Customers will make repayment on an agreed schedule through a separate charge on their electricity bill.

“[BL&P] will offer surge protection services designed to respond to customer requests for enhanced protection of customer owned equipment against power fluctuation on the grid that are beyond the utility’s control.

Customers will make a monthly service charge payment for this service,” the BL&P said in the FTC application.

If the project is successful, the power company intends to expand it.
BL&P told the FTC that customers were keen on renewable energy projects, but most lacked the financing and the BL&P was in a position to fill that void through its new CESF programme.

While BL&P is involved in the supply of PV systems through another company it has established, it assured the FTC, it will allow customers to choose their own PV supplier and installer, as long as they meet the BL&P’s standards.

The company told the FTC: “The customer will be required to repay the amount advanced by the [BL&P] for these energy improvement projects through a monthly CESF surcharge on their electricity bill over a period not exceeding seven years.

“Those customers enrolled in the surge protection programme would pay their monthly service charge through a separate line-item on their electricity bill.”

Making its case for approval, the power company referenced a 1964 project in which 7 000 Barbadians received interest-free loans for initial home wiring.

It added: “Some residential and small business customers, faced with the need to replace their meter socket base equipment, have advised [BL&P] that they cannot afford the cost of hiring the necessary licensed electrician to perform the upgrade, and those premises remain without AMI (advanced metering infrastructure) services [smart meters]. These vulnerable customers need access to affordable financing.”

To participate, BL&P seeks customers with a history of paying their electricity bills on time. Customers have been advised that “the CESF surcharge will become part of a participating customer’s electricity bill and therefore customers will be subject to electricity service disconnection in the event of non-payment of their total electricity bill”.

Importantly, the power company explained that while only customers participating in the scheme will bear the cost of financing, the administrative costs of the pilot project “will be recovered from all of the utility’s ratepayers”.

BL&P contended the move has been triggered, for the most part, by Government’s national energy policy goal to become a carbon neutral economy by 2030. (IMC1)