The Barbados Consumer Empowerment Network (BCEN) supports the Fair Trading Commission (FTC) standing by its decision not to grant the island’s sole power company the 11.9 per cent rate hike it was asking for.
At a press conference on Monday, Chairman of the FTC’s rate hearing panel Dr Donley Carrington announced that the regulatory body had dismissed a motion by the Barbados Light and Power Company (BLPC) to review and vary its February 15, 2023 decision which threw out most of the company’s proposals on which it anchored its application for the new rate.
Among other things, the commission denied the power company’s request for a rate of return of 8.79 per cent on the rate base, and instead offered 7.47 per cent. BLPC has to recalculate its rate data and resubmit information to the FTC which has given an indication that it will announce before Christmas, the new electricity rates.
In its response, the BCEN said the decision was the right one.
“The FTC’s decision seems to have taken into account the economic realities faced by many Barbadians and the potential burden that an increase in electricity rates could impose on various sectors of the economy. It also shows that the FTC recognises the importance of fair and reasonable utility rates, despite the fact that the BLPC may be facing financial challenges. One could conclude that the bigger consideration in this decision was the overall impact on consumers and on various sectors of the economy,” executive director of the consumer organisation Maureen Holder told Barbados TODAY.
“The FTC is sending a clear message to utility providers about the importance of operating efficiently and seeking alternative funding sources before passing additional financial burdens to consumers. Utility companies should be encouraged to explore innovative and responsible ways by which to acquire funding for upgrades and reengineering purposes.
“Overall, BCEN believes that the FTC’s decision is the right decision, and it strikes a balance in terms of protecting the interests of consumers without unduly hindering the ability of the Barbados Light and Power to provide a reliable service to its customers,” Holder added.
However, she suggested that as much as possible, there should be ongoing dialogue between consumer advocacy groups and regulatory bodies to ensure the needs of consumers are considered in future decisions related to the provision of utility services. (EJ)
