Rate increase timing ‘bad’

A former high-profile government official wants to see the application of the Barbados Light & Power Company Ltd. (BLPC) for a rate increase rejected, saying the timing is “really bad”.

At the same time, Clyde Griffith, a former minister of energy in the early 1980s, told Barbados TODAY he believed greater emphasis should be placed on energy conservation and energy efficiency across households and businesses in an effort to cut costs.

Insisting that it was a bad time for the utility company to be seeking approval for an 11.9 per cent rate increase from the Fair Trading Commission (FTC) given the economic challenges facing households and businesses, Griffith said “For BL&P to really seek to have an increase it is inappropriate really as it relates to timing.”

“I think the timing is bad. The timing is really bad . . . We appreciate the fact that they have their own costs to carry but we have to look at what is realistic under the circumstances,” he told Barbados TODAY in an interview on Wednesday.

The rate increase, if granted, would see Barbadians paying between five and 20 per cent more on their electricity bill per month depending on the tariff group into which they fall.

Pointing out that certain rates were already being passed on to customers in the form of the Fuel Clause Adjustment when international fuel costs rise, Griffith said he was still not clear what would have resulted in the BLPC wanting a rate increase at this time.

The utility company had pointed out that the last rate adjustment it received was in 2010 and added that “the significant increase in costs and necessary investments, like the new 33MW Clean Energy Bridge plant at Trents, St Lucy, prompted the request for an increase.

However, Griffith, while indicating that he would not be submitting a formal objection, said, “I hope it is rejected and I hope that other people want that too.”

In any event, the former minister, one of the founding members of the Barbados Renewable Energy Association (BREA), said the issue of energy efficiency and energy conservation should be priority areas for all households and businesses.

He is also calling on Government to “step in” and “find a way to make it more palatable for Barbadians to invest in renewable energy systems” at the household level so they could mitigate any potential increase.

“I push energy efficiency and energy conservation when it comes to the whole question of looking at mitigating the impact of any potential increase that Light and Power may be awarded. I don’t see how FTC can virtually accept this recommendation and allow Light and Power to get this increase. I don’t support it,” he said.

Recalling that the country saved about $40 million over a three-year period and created scores of jobs when as Minister of Energy he oversaw the implementation of several energy efficiency and energy conservation programmes, Griffith said he believed the same could be done today.

“I would encourage Barbadians to look at procurement of energy monitors. It is a valuable tool…that was provided for as part of the tax incentives. So we have nothing to worry about when we push energy conservation and energy efficiency,” he said.

An energy monitor is a device that can be used by householders to monitor their electricity usage in real-time.

Griffith also wants to see greater awareness among the population regarding renewable energy and its importance, saying these should become buzz words among all residents.

“I think it is very relevant today especially given the cost of imports of fossil fuel,” he said.

Griffith said Government should come up with ways to better help people to procure renewable energy systems, adding that after some 45 years of being involved in the solar thermal business the island should be at 100 per cent solar water heater systems by now to replace all electric water heaters.

“We need to come up with a creative way to make it attractive for Barbadians to install solar thermal systems. We need to stop the import if we can, under the World Trade Organisation rules, of electric water heaters. The hotel sector needs to be targeted even if they have to be given incentives,” said Griffith.

He said he believed Barbados was able to achieve its goal of becoming 100 per cent reliant on renewable energy sources by 2030, but said it will require a lot more education among the population.

“As far as I am concerned public education is very important. We need energy clubs in schools to get these young people passionate about looking at energy as a future as far as education is concerned and having professional inputs. It is very important,” said Griffith.
marlonmadden@barbadostoday.bb