Consumers in Barbados may soon be paying more for electricity.
The Barbados Light & Power Company (Light & Power) said in a news release on Thursday that it filed an application with the Fair Trading Commission (FTC) this past Monday for a rate increase.
The company said the rate increases could range from five per cent to 20 per cent, depending on the tariff on which consumers received their service.
“There is no ideal time for a rate adjustment and Light & Power acknowledges that with the impacts of the COVID-19 pandemic, customers are experiencing economic challenges at this time,” the company stated in the news release.
“However, the significant increase in costs and necessary investments, like the new 33-megawatt clean energy bridge plant at Trents, St Lucy, compels us to seek an adjustment in electricity prices.
“These expenditures are needed to maintain a safe, reliable and resilient electricity service that meets customers’ needs for continued high quality service.”
Light & Power said the application was only the second filed by the company in nearly 40 years and the last increase in base rates occurred 11 years ago.
The company added it was able to defer a request for general rate review during that time through careful cost management and process innovations.
“While the cost of living has increased almost 40 per cent since we last set rates, Light & Power has invested in efficiencies and managed costs such that we are able to make application for an 11.9 per cent increase, substantially lower than the increase experienced by our customers for other goods and services in the same period,” the news release stated.
Light & Power said it had designed the proposed new rates in a manner to contain the impact to consumers.
“For example, we have proposed that increases should be no more than $6 for those customers using less than 150 kilowatts an hour in a month,” the media release stated.
“These customers account for 35 per cent of the domestic service tariff group, assumed to consist mostly of low-income customers.”
Light & Power said there could be a further 10 per cent reduction in fuel costs, once the new 33MW clean energy bridge became operational by the end of the year.
“(It) is expected to substantially mitigate the impact of the proposed increase in rates even further,” the news release stated.
Light & Power said it welcomed the engagement of its customers and other stakeholders on the proposals contained in its application.
(AR)
