Light & Power Holdings Limited (LPH) reported $35 million net income for 2011 – down from $46 million in 2010. Capital Investment in new plant and equipment was $41 million, $17 million more than in 2010.
Reporting also on the financial performance and key operating aspects of its main subsidiary – The Barbados Light & Power Company Ltd (BL&P) – for last year, LPH attributed this decline partially to a three per cent reduction in electricity sales from 961 million kilowatt hours in 2010 to 933 million kilowatt hours in 2011.
In its annual report, LPH said that not since 1974, the year of the first “oil crisis”, have electricity sales declined.
According to Peter Williams, managing director of LPH, “The drop in sales is a response to the sustained high oil prices, which have resulted in increased electricity costs at a time when customers are already under pressure as a result of the ongoing global economic recession.”
In 2011, fuel represented 68 per cent of the price of every kilowatt hour sold and cost customers BDS$409.8 million, up from $306.8 million in 2010.
The team at BL&P has worked to ensure that the utility operated as efficiently as possible and has implemented cost-reduction measures wherever possible. The rate of return on its rate base was approximately nine per cent – below the ten per cent approved by regulator the Fair Trading Commission, according to the annual report.
One major development during 2011 was the commencement of construction on a new substation at Belmont in June 2011 to replace the existing substation building which was built in 1972. This replacement of ageing equipment will positively affect the standard of electricity service provided by the company, the report said. With less exposure to the elements, it will enhance the existing network.
“The electric utility business requires significant levels of investment and BL&P remains committed to providing its customers with a high level of service.
“Also, the company is fully supportive of Government’s initiative to establish a Sustainable Energy Framework for Barbados, promoting the introduction of renewable energy technologies and encouraging energy efficiency,” said Mark King, BL&P’s managing director.
“BL&P has taken the lead in this area, and with the approval of the Fair Trading Commission, has initiated a Renewable Energy Rider whereby customers can connect solar and small wind-energy systems to the grid.”
He also highlighted BL&P’s continued commitment to its people and to training and development. This would ensure that employees are capable of carrying out their daily duties and delivering a high level of service that meets customers’ expectations.
