BCEN wants clarification on BL&P’s supply and demand issues

The Barbados Consumer Empowerment Network (BCEN) is questioning a BL&P proposal to undertake the rental of two diesel generators.

In a statement on Sunday, BCEN said renting generators is often associated with a supply and demand problem and is regarded as a short-term or temporary fix to the problem.

BCEN says it wants the FTC to be mindful of the fact that renting generators signals that there is some sort of challenge with the supply and demand of electricity which also means that there is a capacity problem.

Here is the full statement from the BCEN:

The Barbados Consumer Empowerment Network (BCEN) wants clarification on whether the BL&P is currently facing a supply and demand problem. This seems to be the case given the fact that the BL&P proposes to undertake the rental of two diesel generators. Since the issue of supply and demand was never disclosed in any of BL&P’s Press Releases, clarification is needed to help consumers fully understand why the BL&P is undertaking preemptive action to buffer its electricity supply in anticipation of the mentioned upcoming T20 Cricket World Cup and “other” nameless events taking place in Barbados in 2024.

Technicalities of the issue

BCEN maintains that the BL&P needs to communicate to consumers whether they have an existing problem with the supply and demand of electricity.  Renting generators is often associated with a supply and demand problem and is regarded as a short-term or temporary fix to the problem. Over the years the BL&P have been consistently and reliably reporting to customers that disruptions in its power supply is usually caused by transmission problems, line issues, or external interference such as forces of nature or monkeys. Memory also recalls that in recent times the BL&P has been reporting that most of the faults that took generators offline were caused by either nature, monkeys or the transmission lines themselves. This information alone suggests that the problem BL&P seems to be having is a persistent transmission problem and not a generator problem.

The rental of generators seems to be at variance with what the BL&P has been reporting as the main cause for the disruptions in its electricity supply to customers. Therefore, the question remains, if indeed it is a transmission problem why not fix it. Renting generators will not remedy the problem. The generators will only serve as a backup just in case there is a power outage. Furthermore, consumers were made to understand from the BL&P that the company has on standby, outdated, and decommissioned generators in the event of power outages. Does this mean that these generators can still be used?

The FTC needs to be mindful

BCEN wants the FTC to be mindful of the fact that renting generators signals that there is some sort of challenge with the supply and demand of electricity which also means that there is a capacity problem. Indeed, if BL&P has an issue with capacity, then  it is an issue that warrants serious attention and one that consumers should be made aware of. BCEN also urges the FTC, to make the distinction between a generator problem and a transmission problem in its consideration of the BL&P’s application. If the BL&P does not have a supply and demand problem, then it is safe to conclude that they have a transmission problem that they should fix. BCEN believes that the proposed move to rent generators also raises questions about the overall reliability and resilience of the electricity supply system in Barbados, and therefore BCEN seeks clarification on the proposal to recover cost for the rental of the two diesel generator units.

The FTC must outrightly ask the BL&P if it is experiencing problems with the supply and demand of electricity. There is nothing so far that indicates that the BL&P has a supply and demand problem. As far as it can be known, the BL&P seems not to have  resorted to any form of “shedding” which is used when there are challenges with electricity supply and demand. Load shedding or “shedding” as it is called involves the controlled and temporary interruption of electricity supply to certain areas or customers within a particular area. It is a measure that is implemented by companies that supply electricity to balance the demand for electricity with the available supply. The goal is usually to bring the overall demand for electricity in line with the available generation capacity, maintaining the stability and reliability of the power grid. While it may temporarily inconvenience affected consumers, it helps to prevent more extensive and prolonged power outages that could result from an overwhelmed power grid. This revelation raises questions about the necessity for the proposed additional diesel generators and the application to recover the costs associated with such.

Concerns to be clarified

BCEN understands that maintaining a reliable power supply is critical especially during unexpected outages and we are also aware that renting generators is a temporary measure. However, given the limited information provided in BL&P’s Press release, consumers could assume that the BL&P is certain (not anticipates) that there will be disruptions to the electricity supply. Again, if this is the case, would it not be better to rectify the problems with faulty transmission lines preempting the need to rent two backup generators ?

Through the FTC BCEN is seeking clarification from the BL&P for consumers on the following:

1. Whether the BL&P faces a supply and demand problem.
2. The rationale for the backup generators to address disruptions in electricity supply which is mainly caused by transmission problems.
3. The basis and methodology used by the BL&P for making projections about the supply and demand of electricity in 2024.
4. How does the decision to rent generators align with broader investments aimed at upgrading and maintaining the overall electricity infrastructure, including the transmission lines.

(BCEN/PR)