Banner promoting anonymous crime reporting with a phone and contact number 1 800 TIPS (8477), featuring the Crime Stoppers logo and a QR code for submitting tips.

← Back

Your message to the BLOGMASTER was sent

ftcBack in May 2009 we underscored the The Important Role Of The Intervenor At FTC Hearings as advocates for the PEOPLE. The fact they are not paid and are expected to engage corporate entities with significantly more resources makes the Intervenors heroes in our eyes.

The long awaited BL&P Hearings under the aegis of the Fair Trading Commission commences tomorrow (2009.10.07), from 9.30AM at the Lloyd Erskine Sandiford Centre.  The Hearing is expected to continue week-days until 2009.10.23.

The Intervenors are:

– Barbados Association of Retired Persons Inc.

– Barbados Small Business Association

– Barbados Association of Non-Governmental Organisations (BANGO)

– Barbados Consumers Research Organisation Inc.

– Dr. Roland R. Clarke.

– Mr. Errol Niles.

– Mr. Douglas Trotman.

– Canbar Technical Services Ltd.

– Sentinel Group Caribbean Inc.

BANGO has promised to record the hearings as is practicable and make available for the PEOPLE for following. We wish all of the Intervenors the very best. Many of us talk but few are forced to act.


Discover more from Barbados Underground

Subscribe to get the latest posts sent to your email.

199 responses to “The Barbados Light & Power Rate Hearing Commences”


  1. @Chris

    Can you ask Worme why he STOPPED communicating with the BU family? LOL

    Chris are you happy about the BL&P plans to pass on costs associated with LIME using their pole plant it could impact on their revenues and lead to another application to the FTC or would the cost be negligible?


  2. Awright ROK. Reddifusion. I feel bad now. Ca dear man yah could ah let dah one pass…!

  3. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    For those involved closely in the process as Intervenors, could you explain why an important public process such as this is not broadcast (TV, radio, Internet are all possible), either live or with delay? It is not a matter of technological limitation, but it says something, maybe much, about ideas of information sharing. Transcripts are fine for those who can read, and read well.


  4. I too wonder why they don’t broadcast rate hearings in Jamaica.


  5. @David: “Chris are you happy about the BL&P plans to pass on costs associated with LIME using their pole plant…

    I am going to have to defer answering this question for a little bit, as my answer would telegraph my line of questioning to continue this morning.


  6. Man BAFBFP, if I did let that one pass you would get embarrassed some where down the road. You know now right? LOL!


  7. @LIB: “For those involved closely in the process as Intervenors, could you explain why an important public process such as this is not broadcast…

    Other than what BANGO is doing, you mean?

    I think there are three reasons:

    1. It is a public hearing — anyone interested can attend.

    2. It is a *extremely* boring process, and in this “MTV Generation” with attention spans close to that of pieces of furniture, it is not thought there would be much of an audience.

    3. Barbados does not have a channel such as CPAN, and so there simply isn’t a place to put six hours of video a day.

  8. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    @Chris Halsall,

    I meant that as a piece of public policy (ie government-generated process) there is also a public service aspect to its being broadcast. BANGO’s dissemination of proceedings are to be applauded, but it is ‘filling a gap’. My question, and you may not have the answer, is why public policymakers/government does not fill that gap, in part or wholly.

    I’m not subscribing to the attention span reason, as Parliamentary proceedings are themselves dreadfully dull. Cricket matches too may often be seen in that light.

    We live in a democracy and I am always trying to understand how we think the roles of citizens can be fulfilled with less rather than more information.

    Being open to the public is one start, but most of the country is still in jobs. What would stop the GIS having a dedicated or special Internet-based broadcast ‘channel’ or for CBC radio to broadcast (even on an exceptional basis)?


  9. BUSH TEA LOOK WHO COME BACK…! Hah…!

    I wid LIB.

    The media houses (Starcom) in particular are more interested in promoting the laudable side of BL&P than they are at providing sufficient information on the proceedings to date. Sunday’s Brasstacks for example should have been about the hearings and what was discussed to date. Rate hearings are not court hearings, of which their can be no public discourse when deliberations are ongoing…! If you can’t broadcast the thing live or delayed, then for God’s sake set aside more time for discussing it (other than the daily four minute synopsis that is brought) and contribute by raising the level of importance in the minds of the average man and woman.

    This Fourth Estate thing in the words of Big Brother David “is SHIT”.

    LIB you still Livin’?.. Ha Ha Ha


  10. Live streaming of the Hearing is going a little better. The bandwidth seems to be holding up today. Was a bit worried about sound quality. Picture quality is not the best either. We will keep trying.

    The link is:

    http://www.ustream.tv/channel/ngo-news


  11. The first of three recordings from day four of the hearing.

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_4_20091012_1_of_3.wma

    I have to admit that I am extremely disappointed that the Chairman instructed me to restrict my questioning. I will speak to this in more detail later this evening.


  12. And the third of three recordings from day four.

    This contains Mr. Mascoll’s cross examination of BL&P’s Mr. Best.

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_4_20091012_3_of_3.wma


  13. @CH: “I will speak to this in more detail later this evening.

    Now that I have calmed down a bit…

    I will *not* be speaking to this further this evening, as I’ve realized (to use a Go metaphor) that I’m not dead yet, but instead still have some stones to play….


  14. @Chris

    Like we wrote before, its all BULL SHIT!


  15. @David…

    I don’t necessarily agree with your immediate above.

    I *will* agree with you if the FTC grants the full increase requested, despite all the relevant observations and points from the Intervenors.

    But it can most certainly be said that this is a *very* complex game (which is why I enjoy it so much, and why I am so please we have such good players on our side)….


  16. I think I got a bit frustrated today with the GM. The only reason that I did not pursue him was that other fish are coming.

    In my frustration however, I forgot a most important question and that is this claim that the rates are designed to to encourage conservation of electricity rather than collect revenue; as first queried by Clyde Mascoll.

    However, all is not lost, I really did not want to be responsible for taking him into the fifth day but it would have been a nice end to the frustration.

    What I would say is that the cross examination of Peter Williams was too long. It had to do with the long winded answers to every question; sometimes answering a question that was not asked, then to have to answer the substantive question afterward.

    What I will say is that this ploy has worked for BL&P for the media. He was able to get in some good PR from what I see of the CBC reports. Not much was said about the Intervenors side of the coin but much time was spent with Williams and his PR statements.

    For example, Chris demonstrated that the company was refusing to collect a million dollars based on some idea that the company seeks only recovery of cost rather than revenue maximisation. Obviously, though, this is BL&P’s way of assisting telebarbados. In the depreciation hearing, I warned that telebarbados seemed well poised to piggyback on BL&P assets and I was not wrong.

    I would think that any prudent business would exploit its assets in order to reduce its cost and maximise its revenue. Now when I heard that, I immediately thought of a calypso tent that sought a contribution from BL&P and got $400.00 with an explanation that the company don’t have any money… but how can you not have money and refuse to collect a million dollars a year. That money could easily sponsor all the tents in Barbados annually.

    Thing is, that is not the only monies the BL&P are refusing to collect. In these times, this talk about not maximising revenue is out of the question. Every cent the company can collect is a cent saved by consumers.

    The company must also consider its responsibility to consumers and don’t seek to get every cent out of consumers when better can be done.


  17. @Chris

    Maybe if you guys (Intervenors & Journalists) would stop telling BL&P what a well-run company it is the management Williams et all would stop feeling so over -confidence and smug in their positions.

    BU is not saying it is not a well managed company, we even hear Stetson Babb and David Ellis singing its praises, they seem to be big fans of the two utilities.

    Tell though, what are the measurements you are using to judge BL&P’s success? What are the KPIs for this company and how do they compare to other in its peer group.


  18. @David

    Actually, it may work in our favour once the myth of being a well run company is debunked. We are finding wastage and other things which will certainly place the BL&P in the same category as most companies. What is good about the company is its customer service and it has been able to use this as a front to project an immaculate face.

    However, by the end of this hearing we expect that some skeletons will come out of the closet. Can’t give away too much at this time but certainly along with Ellis and Babb at Starcom, Goddard at CBC is doing a good job for them too; you noticed?


  19. @David… To disagree somewhat with ROK above…

    For the most part BL&P *is* a well managed company. Yes, there are some lost opportunities which I’m helping to expose, but three key performance indicators (KPI) are:

    1. Profitable for every year for the last twenty six (26) years.

    2. The lowest cost per kw/h in the Caribbean except for T&T (cheap fuel) and a French island (subsidization).

    3. Better than 99.9% system reliability.

    It is *precisely* because of this that the Intervenors are arguing that perhaps the Company does not require as large an increase as they are asking for, since their risk profile is lower than other borrowers.


  20. @All… I have to correct some mistakes in today’s Barbados Advocate article (page 4) “BL&P looking to claim pole rental costs from C&W”.

    The article says that Williams said “[C&W] at the moment is not paying any rental…”

    This is *incorrect*. C&W is at the moment paying $2.02 per month per attached pole.

    C&W is *not* at the moment paying any rental for *reserved* poles. This is what Williams and I were discussing at that moment (as anyone who listens to _day_4_1_of_3 will hear).


  21. What about the fact the government of Barbados currently suffers sovereign risk for loans borrowed by BL&P? How does this compare to other power companies in the region? Is there a cost to government especially given our debt to GDP ratio and current credit rating?

    Also what about the KPI income/employee cost?


  22. David
    “Maybe if you guys (Intervenors & Journalists) would stop telling BL&P what a well-run company it is the management Williams et all would stop feeling so over -confidence and smug in their positions”

    And this is so well said. This is the point perfectly stated. This is why I even doubt the sincerity of some of the interveners


  23. The former Managing Director ,Frank McConney’s policy was Why go to the PUB,as it were, lets try and save that dollar internally.


  24. I’m afraid we had some technical issues today recording. Ran out of batteries in the later afternoon, and then for some reason the recorder started (or was stopped…) in the afternoon.

    I’m still naming these n_of_3 (n == 1 or 2) in the hopes we can provide the afternoon session from other sources.

    Most of the before morning break session:

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_5_20091013_1_of_3.wma


  25. Sorry — my above should have read “ran out of batteries in the later part of the morning session.”

    Morning break to lunch break session:

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_5_20091013_2_of_3.wma

    Malcome, then CanBar, then the first (and majority) of Douglas Skeete’s cross examination.


  26. @BAFBFP: “This is why I even doubt the sincerity of some of the interveners

    Thanks BAFBFP. Nice to know our four months of preparation reading, digesting and analysing over one thousand (!) pages of extremely dense and complicated documents, and then (at least) ten days of hearings (all unpaid), are so appreciated….


  27. @David: “What about the fact the government of Barbados currently suffers sovereign risk for loans borrowed by BL&P?

    The loan by the European Development Bank is backed by the GoB. Not *all* loans. (This was clarified during this Hearing.)

    @David: “Also what about the KPI income/employee cost?

    I personally can’t speak to that. Perhaps someone in the BU Family could assist the Interveners by answering your question? Or is that asking too much?


  28. @David,

    To add some clarity to Chris’ response, the backing of loans by Government is in respect of loans on the foreign market. It is really a technicality because in order to get the loan, Government must do two things. First it must give the BL&P permission to borrow on the foreign market and by doing so, guarantee the foreign exchange. Therefore, if the BL&P fails to pay, Government must still forward the foreign exchange.

    It is really a foreign exchange thing rather than an outright backing of loans. Of course Government will be glad for the foreign exchange that such a loan will bring.


  29. Thanks for the clarification ROK.

    Of course you must concede if the BL&P borrows on the foreign market it is doing so for a reason i.e buying equipment.
    The foreign money borrowed in our eyes is transient and will not be of any real benefit to the country’s foreign reserves.

    There is the reality the BL&P is not a foreign exchange earner and any time it borrows foreign dollars there is a cost to Barbados and taxpayers. Is this something that is quantifiable? What we are getting at is to label BL&P a well managed company without factoring the extent to which is depends of sovereign backing is inaccurate.


  30. @David: “The foreign money borrowed in our eyes is transient … and will not be of any real benefit to the country’s foreign reserves.

    Not directly… Agreed.

    However, perhaps the borrowing (for capital investment, which you yourself (David) pointed out) will be a real benefit to the *local* economy by way of the Company being able to continue to reliably deliver the electricity *all* the local consumers demand.

    Including all those BL&P Consumers who generate foreign exchange…

    If I may, please let me put this another way…

    If most guests of Barbados (who are already paying *way* more than they would if they visited *many* other “vacation destinations”) found the country in the dark during their stay…

    …how well would *that* go over for our “foreign exchange earning potential”?


  31. @David,

    I am not entering any debate as to how well BL&P is run. I have different criteria as to what is a well run company. I also make a distinction between good management and good business leadership. I would say that good management is like maintenance while good business leadership and acumen is about building a business and maximising all available resources.

    One is about carrying out the wishes of its board of Directors while the latter is about making policy and management decisions which the managers carry out.


  32. No offence to the intervenors (they are doing an outstanding job) but there is a need to start asking some pertinent questions which relate to how well capital is utilised by the company. How appropriate is its mix of generating plant applicable to a small island state such as Barbados. How timely has the Company been in the installation of new generating plant. nuff said!


  33. @Baje Iceman

    I hope that you are not going by the reports you heard in the media. Today I had it with Mike Goddard over the reporting. He in turn told me that he would like if CBC carries the hearing live; although for his own reasons.

    However, the intervenors have asked some hard questions as it relates to BL&P as a company. Those who have done so are far more than the media is reporting. We heard a note on Errol Niles which was far more deserving than a mere note.

    Those intervenors who have asked some hard questions are: Douglas Skeete, Clyde Mascoll, Chris Halsall, Douglas Trotman and Errol Niles.

    For the most part, these men went to the core of BL&P operations and sought to dissect the BL&P to show that as much as BL&P are doing they are very much lacking.

    Douglas Trotman for example, asked about storage of oil when the price is down in order to get through the rough period of high prices.

    Chris Halsall sought to find out why BL&P was not collecting its fair share of recovery costs from the use of poles by other service providers; we talking about $1.5M annually at least.

    I forgot to mention the representative of CANBAR who sought an explanation as to why BL&P is dragging its feet on renewables which require no fuel inputs and minimum maintenance.

    Errol Niles and Clyde Mascoll dealt with capital and use of capital also.

    I am trying to stream it daily so that people could tune in for themselves. We had some technical problems; funny enough my problem was a loop in the electricity outlets that was causing interference and producing poor quality; not the fault of BL&P though, that is a local problem at LES Conference Centre but got it rectified today. So hopefully from tomorrow we will have at least good sound.

    The other problem for me today was internet connectivity. It simply went down.

    Trying checking it out at http://www.ustream.tv/channel/ngo-news


  34. @Baje Iceman

    One thing I forgot to say is that it is alright to ask hard questions but in the end, our duty is to try to stave off an increase. Therefore we need to focus on the maths rather than hitting at management which will not stop the increase without a demonstration that the company does not need an increase or that they need a smaller increase.

    Errol Niles is suggesting an increase from 6.07% to 8.5%. We will be demonstrating that the company should get a smaller increase.

    In the meantime Clyde Mascoll has demonstrated that the company is really asking for a 72% increase based on revenue requirement. Check the maths:

    The company is presently operating with a revenue requirement of $33,o43,665
    It wants to move that to $57,032,027
    therefore, 57,032,027 – 33,o43,665 = $23,988, 362 (increase).
    Then 23,988, 362 / 33,o43,665 x 100 = 72.5% increase.


  35. ROK

    Why the *****&@ ** you and the other intervenors are conceeding that BL&P should get an increase at all?

    You seem to be suggesting they get a smaller increase,as well as errol niles etc.

    I hope you understand that right now we can’t tek it no more.

    There is no justification for this increase to be borne by the consumers.

    I hope the other FTC members other than the chairman are listening,because I have no confidence in neville niccols to do the right thing for the consumers.

    Stubborn,pompous jackass.


  36. ROK and Chris. Nice job and done with great foresight and wisdom.

  37. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    @ROK, “In the meantime Clyde Mascoll has demonstrated that the company is really asking for a 72% increase based on revenue requirement.” Whatever the price increase requested, if revenue equals prices times volume then this suggests a whopping increase in ‘usage’. What is going to be happening in Barbados’ economy–still mired in recession–to make that come true?

  38. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    @Chris Halsall, your explanation of the potential national gain from BL&P borrowing abroad with sovereign backing is very clear. However, therein lies the problem. The borrowing will have to be repaid but the foreign exchange gains are disparate and not necessarily positive. Take, for example, large domestically oriented entities such as most of the retail sector (supermarkets, cars, department stores, etc.). They are net users of foreign exchange, which puts a heavier burden on net earners of foreign exchange (mainly tourism and offshore/international businesses), who already have obligation to remit some (all?) of their FX earnings.

    This is always a tough equation for the government to solve and it cannot put more pressure on BL&P to get more FX in. The fact that reserves are dwindling makes more apparent a deeper financial problem for the government. The debt repayments cannot happen easily without taking money from elsewhere, and that means cutting spending and/or raising taxes (and public sector prices). Some may want to see the public utilities as having cut the government with a double edged sword.


  39. @ROK & Chris

    Let us reiterate the BU household supports what you and the other Intervenors are doing. We live in a time where the flame of voluntarism is a soft glow when our level of education says it should be flaming. On the other hand it does not mean the BU family will not offer feedback which sometimes maybe brutal.

    We understand there is value which is created by the BL&P providing a power generation and distribution service. We also question successive government’s lack of leadership in implementing an RE program. The longer the status quo continues by 100% supporting a fossil based energy program the monster will need to be fed. Again a lack of leadership and it is why we keep writing this is BULL SHIT!


  40. @Anonymous

    I think that in any fight you need to be realistic. If we go in there saying no increase, without giving the Commission something to chew on, it may end up that the BL&P may get what it is asking for lock, stock and barrel.

    If you or anybody can help us demonstrate that an increase in unreasonable, then we have a case. Outside of that, it would be a mistake not to consider or put forward smaller increases.

    When we went into the C&W rate hearing it was for no increase at all. We had a case for no increase and we went after it and won. You simply have to choose your battles carefully and position yourself to win. If you see that you can’t win you mitigate and you have to have sufficient awareness and knowledge of the situation to know where you stand. Without the evidence it would be pointless and a defeatist position just getting up and saying no increase.

    As an advocate with a lot of experience with Government locally, regionally and internationally, we have to be mindful of our cause and sometimes you have to take a gamble to get what you want or reduce the impact of an impending decision. I note your comment about Sir Neville.

    @David
    You should know that if there is anybody on this blog that can take licks and share them too, it is I. So don’t be apologetic. I welcome hard comments. We can only do the best we can within the context.


  41. @Dennis Jones… I understand what you’re saying about Foreign Exchange (FX).

    However, keep in mind that Barbados does not manufacture any generation equipment, and therefore these can only be purchased away.

    Please also note that by far the largest amount of FX expended by the Company is for fuel. The Company has pointed out that the more modern “kit” to be purchased will be more efficient.

    But, to also support David’s position, if renewables were being taken more seriously (by both the Company and, even more importantly, the GoB), this could be reduced even further.

    All the Intervenors were extremely disappointed when this topic was removed from the current discussions by the Chairman of the FTC….


  42. @David: “On the other hand it does not mean the BU family will not offer feedback which sometimes maybe brutal.

    We would want and expect nothing less.

    But also please expect us to respond in turn based on the *knowledge* we have gained, which anyone who was willing to take the time could also have…

    As ROK said above, please don’t think you understand the situation or process based on the “News Reports”.

  43. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    @Chris Halsall,
    The sovereign backed foreign currency (FX) debt should be for equipment (capital) rather than fuel (current) spending, though of course money is fungible. Solving the tough equation of balancing the foreign exchange needs and flows across the economy is part of government’s job, and Clyde knows that. While BL&P could save FX by being more efficient with fuel it’s hard to see how it can do similar with equipment. The new kit should help future efficiency and we may even be in for a future surprise of lower rates.

    We can dream.

    The interveners seem to be doing a very good public service, which makes me regret more the apparently lamentable efforts by government to make the public better aware of this important process.

  44. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    @Chris Halsall, “All the Intervenors were extremely disappointed when this topic was removed from the current discussions by the Chairman of the FTC….” Can you say more about this, in terms of whether it was an unwarranted manipulation of the process and calls into question the neutrality of the Chairman?


  45. All the Intervenors were extremely disappointed when this topic was removed from the current discussions by the Chairman of the FTC….
    _________________________

    You serious? This is the 1st time that I have ever agreed with LIB ha ha Oh what a wonder!


  46. You all are in for some fun!

    The first of three recordings from day 6.

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_6_20091014_1_of_3.wma

    This consists of Commissioners Gregory Hazzard and Andrew Brathwaite cross examining Mr. Hudson Best, CFO of BL&P. I was *very* pleased of Mr. Brathwaite asking some questions with regards to pole revenue.

    Then the “lead questioning” of Mr. Robert Camfield, BL&P’s outside consultant and author of their “Rate of Return Recommendation”.

    The next two recordings, currently being uploaded, are where the real entertainment is though….


  47. This is where the entertainment starts…

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_6_20091014_2_of_3.wma

    The *first* part of Mr. Clyde Mascoll’s cross examination of Mr. Robert Camfield, expert witness for BL&P.


  48. The third of three recordings from day six.

    http://www.ideas4lease.com/reports/ftc/blp_rate_hearing_day_6_20091014_3_of_3.wma

    The second part of Mr. Mascoll’s cross examination of Mr. Camfield for today.

    Mr. Mascoll has yet additional questions for Mr. Camfield, starting tomorrow at 0930.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading