The Barbados Light and Power Company (BLPC) told the utility regulator hearing its request for a rate hike that it was prudent to pay some $100 million in dividends to the Canadian owner of the business seven years ago.That was the testimony of the sole witness of the BLPC, Managing Director Roger Blackman who gave evidence today before the Fair Trading Commission (FTC).Blackman said transferring the money from the company’s self-insurance fund – which had too much money – to new owner Emera Caribbean was to allow BLPC to better manage its capital structure.
The Fair Trading Commission’s (FTC) sometimes competing roles of regulator on one hand and advocate on the other, have come sharply into focus during the on-going application by the Barbados Light & Power Company (BL&P) for an increase in electricity rates.Much to the chagrin of consumers, the FTC has already granted the Canadian-owned power supplier an interim increase, until a final decision is made on the substantive request.Any business will try to extract the highest level of returns for its products or services, but a utility company is a special animal because the good that it is selling is a necessity for the proper functioning of a modern society such as ours.Importantly, any further increases in the cost of electricity will have a negative ripple effect throughout the economy as this recurring cost will be passed on by most enterprises and will likely result in increased costs across the board.
The island’s sole electricity supplier told a rate hearing today that it proposes to cap the bills of 41 000 low-income consumers at $6 per month provided they don’t go over 150 kilowatts per hour of usage.This position was put to the Fair Trading Commission (FTC) panel in the rate adjustment hearing, by the lead attorney for the applicant, the Barbados Light & Power Company (BLPC).In his opening presentation on Thursday, Ramon Alleyne, King’s Counsel (KC), said the number of domestic customers who stand to benefit from this cap has increased by close to 10,000 since the last rate hike in 2010.“The customer charge increase on lower usage blocks will be kept below full cost of service to reduce bill impacts on lower usage customers, many of whom may have low incomes; while the customer charge on the higher usage blocks will be at the cost of service,” the senior attorney submitted.
The Fair Trading Commision (FTC) panel presiding over the Barbados Light and Power Company’s rate hearing adjourned to consider a re-submission of the motion from the Office of the Public Counsel for a stay in the hearings. In the opening session on the second day of the hearings, intervenors as well as the legal team for the applicant argued the motion, with the intervenors unanimously agreeing that the Public Counsel …
Adjournment application dismissed on Day One of BL&P S rate hearing barbadostoday.bb - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from barbadostoday.bb Daily Mail and Mail on Sunday newspapers.