The Financial Services Commission (FSC) has applied to the High Court for permission to intervene in the ongoing rate appeal between the Barbados Light and Power Company Limited (BLPC) and the Fair Trading Commission (FTC), seeking to provide submissions on issues related to jurisdiction and self-insurance.
The hearing of Light and Power’s appeal against the FTC’s recent rate ruling is set for December 4 before Justice Barry Carrington. In a letter dated September 24, obtained by Barbados TODAY, FSC’s general legal counsel Sade Jemmott expressed the commission’s intent to offer amicus curiae (friend of the court) submissions.
“The commission proposes to advance written submissions and, if required, make oral arguments to assist the court in determining certain questions of law,” Jemmott said.
According to the FSC, its interest lies in the legal and jurisdictional aspects of the self-insurance fund involved in the appeal. Jemmott noted that the FSC’s role includes regulating non-bank financial services, such as self-insurance, and highlighted the commission’s oversight responsibilities under the Insurance Act and the Insurance (Barbados Light and Power Company Limited) (Self-Insurance Fund) Regulations, 1998.
“The commission is of the view that it is uniquely qualified to provide valuable input on aspects of the appeal that relate to the exclusivity of the commission’s jurisdiction, its scope of power, and previous actions in relation to the self-insurance fund that may be relevant,” Jemmott argued.
She assured the court that the FSC’s involvement would not delay the December 4 hearing but would instead ensure that the court has all the necessary information to make a just decision in what the FSC called a “nationally significant matter”.
Last December, Light and Power initiated the legal challenge after the FTC rejected its request for an 11.9 per cent rate increase and an 8.79 per cent return on its rate base. The utility company argued that the FTC’s decision contained legal and procedural errors that hampered its ability to serve customers.
The unprecedented legal challenge came after the chair of the regulator’s rate hearing panel Dr Donley Carrington announced that Barbadians would learn before Christmas about the revised electricity rates, stressing that it would not be the 11.9 per cent increase requested by the company.
Light and Power said the legal appeal was necessary to defend “fair and reasonable legal standards” governing the industry.
“We feel that we are left with no other option than to continue efforts to resolve serious errors of law related to the rate application,” the company said, adding that these errors had “major consequences” for its operations.
Veteran utility intervenor Ricky Went, who supported the FTC’s decision, had accused the electricity company of making changes to depreciation rates without approval in 2012. He had also told Barbados TODAY that the FTC’s decision was well-grounded in data, noting: “The FTC was most generous. For example, [Light and Power] removed $99.5 million from the SIF [Self Insurance Fund] and paid dividends in one year. FTC gave BLPC 30 years to replenish the SIF. No interest was applied.”
emmanueljoseph@barbadostoday.bb
