BRIDGETOWN, Barbados, CMC – The Truthful Buying and selling Fee (FTC) has turned down an 11.9 p.c improve in electrical energy charges that had been sought by the Barbados Gentle and Energy Firm (BLPC) and can as a substitute announce by Christmas what the brand new charges customers right here should pay.
Chairman of the FTC Price Listening to, Dr Donley Carrington, informed a information convention that the BLPC should first adjust to the February 15, 2023orders issued by the fee earlier than figuring out the ultimate price base.
In February, the electrical energy firm was ordered to return to the drafting board to recalculate its price knowledge and resubmit its findings to the FTC. Nevertheless, the utility firm filed a movement for the fee to evaluate that call and alter its orders. The corporate had additionally sought and was given a keep of execution on these orders.
Nevertheless, in handing down its ruling, Carrington mentioned the keep has now been lifted, and the BLPC has to adjust to these orders and reply accordingly.
“The BLPC’s request to have a notional monetary capital construction of fairness 65 p.c and debt 35 p.c in figuring out its price of return is denied. The fee maintains the accepted notional monetary capital construction of fairness 55 p.c and debt 45 p.c for rate-making functions in figuring out the speed of return,” he informed reporters.
“The BLPC’s request for a price of return of 8.79 p.c on the speed base . . . is denied. The fee has maintained its choice to grant a price of return of seven.47 p.c, as beforehand acknowledged within the February 15, 2023 choice.
“The BLPC’s movement for the evaluate and variation of the fee’s choice dated February 15, 2023, is dismissed. The fee will formally evaluate the applicant’s compliance submitting, require amendments as obligatory, and last order outlining charges,” Carrin thereaftergton mentioned.
He added that the interim charges, efficient September 16 final 12 months, will proceed to be billed by means of to the date to be decided within the last order and that the difficulty of refunds, if any, will likely be addressed within the order.
These interim charges have been capped at 50 p.c of the requested charges for all clients, apart from charges to be charged to BLPC staff for whom one hundred pc are accepted.
In a press release, BLPC mentioned it was “deeply” involved concerning the FTC’s choice and that it solely grew to become conscious of the FTC’s choice to difficulty its ruling on Monday by means of a discover posted on the fee’s social media platform.
“As on the time of the press convention, Gentle and Energy had not been supplied with a replica of the choice nor formal discover by means of acceptable channels of its supply. Gentle and Energy is deeply involved by the FTC’s ruling and can evaluate the choice earlier than offering additional remark”.
Carrington additionally introduced that BLPC’s utility to get better the undepreciated portion of the five-megawatt power storage system (ESD) and working expense within the base charges is denied and can proceed to be recovered by means of the gasoline clause adjustment (FCA).
The fee additionally concluded that it didn’t act in extra or with out jurisdiction by directing the facility firm to make sure selections in regards to the self-insurance fund (SIF).
“Underneath Regulation 8 of the Insurance coverage (Barbados Gentle and Energy Firm Restricted) (Self-Insurance coverage Fund) Laws 1996 as amended, it’s illegal to make use of cash within the SIF to pay dividends to shareholders. Carrington mentioned it was impermissible for the applicant to make use of cash collected in buyer charges for deferred tax liabilities to pay bonuses to shareholders.
The FTC additionally dismissed the BLPC’s claims that the orders have been ordered for retroactive rate-making or referring to the rule towards retroactive rate-making.
“The applicant’s claims for authentic expectation and, or estoppel arising out of alleged representations made by the fee to the applicant in regards to the SIF and the over-collection for deferred revenue tax legal responsibility have to be rejected.”
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