est. 2007

Barbados Underground

Bringing News and Opinions to the People

Fair Trading Commission To Hand Down Barbados Light & Power Rate Hike Decision

FAIR TRADING COMMISSION DECISION – RATE REVIEW THE BARBADOS LIGHT & POWER COMPANY LIMITED BARBADOS No. 2 of 2009 IN THE MATTER of the Utilities Regulation Act CAP. 282 and the Fair Trading Commission Act CAP. 326B of the Laws of Barbados; AND IN THE MATTER of the Utilities Regulation (Procedural) Rules 2003; AND IN…

, ,

Sample Image

FAIR TRADING COMMISSION

DECISION – RATE REVIEW

THE BARBADOS LIGHT & POWER COMPANY
LIMITED

BARBADOS

No. 2 of 2009

IN THE MATTER of the Utilities Regulation Act CAP. 282 and the Fair Trading Commission Act CAP. 326B of the Laws of Barbados;

AND IN THE MATTER of the Utilities Regulation (Procedural) Rules 2003;

AND IN THE MATTER of the Application by the Barbados Light & Power Company Limited for a review of electricity rates pursuant to Section 16 of the Utilities Regulation Act CAP. 282 of the Laws of Barbados;

THE FAIR TRADING COMMISSION HEREBY GIVES NOTICE that:
The Commission will reconvene the Rate Review Hearing on Thursday, January 28, 2010 at 10:00 a.m. at the Lloyd Erskine Sandiford Conference Centre, Two Mile Hill, St. Michael to deliver its Decision in this matter.

Dated the 22nd day of January 2010.

Peggy Griffith
Chief Executive Officer
Fair Trading Commission
Telephone: 424-0260

92 responses to “Fair Trading Commission To Hand Down Barbados Light & Power Rate Hike Decision”

  1. Christopher Halsall Avatar
    Christopher Halsall

    @BU.David: “It seems you can speak with authority about what BL&P can do.

    Only in so far as I read over 1400 pages of evidence during this Rate Review exercise.

    Just to be absolutely clear, I am not, nor have I ever been, employed by BL&P nor BL&P Holdings. I haven’t received a single cent from them.

    @BU.David: “Is anyone questioning BL&P’s capacity to shed load?

    Yes. This issue was raised during the Hearing.

    @BU.David: “The issue on the table relates to the cost of the fuel used to feed the gas turbines which represents 30% of generation.

    Of which the Company derives *no* financial benefit.

    So one might reasonably question why there’s a claimed “conspiracy” or some “missed issue”.

    @BU.David: “Baje Engineer hinted at why he has to use an alias, don’t you ever read between the lines?

    “Between the lines” can’t be submitted to court.

    But boy, it sure plays well to the uninformed, doesn’t it?

  2. Baje Engineer Avatar
    Baje Engineer

    All I am going to say at this point is that there is a report PREPARED FOR THE FTC which spoke to the use of Gas Turbines by the Company and drew a fairly interesting conclusion. I am sure if you requested it, it might be shared with you.

  3. Hants Avatar
    Hants

    David wrote.
    “Here we go again, the consumer screwed.”

    David the consumer is also masturbating.

    The consumer must immediately resist the screwing by conserving electricity in your homes and businesses.

    If a family of 4 practices energy conservation they will have more money to go to the movies or Moontown or Oistins .

    Give your children extra pocket money if they get with the program.

    The Intervenors cannot win against BL& P.
    They do not have the money to hire the experts to do audits and critical analysis.

    The consumer is paying BL&P to hire experts to show why said consumer should pay BL&P more money.

    Now is a good time to start energy conservation habits.
    If the recession continues you will be forced to cut costs so start now.

  4. Christopher Halsall Avatar
    Christopher Halsall

    @Baje Engineer: “All I am going to say at this point is that there is a report PREPARED FOR THE FTC which spoke to the use of Gas Turbines by the Company

    Can you name this report?

    Was it part of the 1400 pages of evidence considered during this Hearing? Because I think I might have read the report you’re refering to.

    And, *exactly* please, what was the “interesting conclusion” drawn, in your opinion?

  5. Baje Engineer Avatar
    Baje Engineer

    The Company has no incentive to waste fuel is correct but the Company has a mandate to generate electricity at the least possible cost. Can you say that by using gas turbines which use expensive fuel (aviation fuel and diesel) which the customer pays for, is generating at the least cost to the customer? Please think about it for a bit! That is all I am saying to you. You need to apply some more analysis to this thing. Believe me it is not all that complicated.

  6. David Avatar
    David

    @Baje Engineer

    If you have the report email us. If you feel like communicating offline feel free also.

  7. Baje Engineer Avatar
    Baje Engineer

    Mr. Halsall,

    I do not have a copy of the report available right now. Why don’t you do as I suggested and request it? It would have more weight if you got it by legitimate means. Don’t you agree?

  8. Christopher Halsall Avatar
    Christopher Halsall

    @Baje Engineer: “I do not have a copy of the report available right now.

    And yet you’ve made claims based upon it.

    @Baje Engineer: “Why don’t you do as I suggested and request it?

    How does one request something which one cannot name.

    When you get back to work, could you please check to see if the report you are referring to is titled “The Barbados Light And Power Company Limited System Expansion Planning Study 2007” produced by PB Power, dated December 2008?

    If so, then yes, I have read it. It was provided to us by the Commission after the Company provided it to them.

    I can actually provide *you* with a copy, if you wish.

    I do, however, ask again: please… what was the “interesting conclusion” drawn, in your opinion?

  9. Avatar
    Anonymous

    Chris
    … you said that you were dyslexic right?!!!

  10. Avatar
    Anonymous

    Halsall
    You are a taxi owner and your passengers pay your fuel bill. YOU MAKE NOTHING FROM THE FUEL PAYMENTS.

    What kind of taxis will you run? modern $200,000 units that give 50 MPG? or old beat up scrap that cost $5000 and average 1 MPG?

    And how much would you invest in fuel free (alternative fuel) vehicles?

    But then again! Knowing you……

  11. Christopher Halsall Avatar
    Christopher Halsall

    @Anonymous…

    Interesting…

    @Anonymous: “You are a taxi owner and your passengers pay your fuel bill.

    A fundamental truth: a Company’s Consumers pay *all* the bills. Otherwise the Company isn’t sustainable.

    @Anonymous: “YOU MAKE NOTHING FROM THE FUEL PAYMENTS.

    This statement is true for BL&P. It is not true for the Taximan. Or for any other business in Barbados.

    @Anonymous: “What kind of taxis will you run? modern $200,000 units that give 50 MPG? or old beat up scrap that cost $5000 and average 1 MPG?

    Well, since for Taximen the cost-per-trip is regulated by the Government (enforced at the Airport; not so enforced at the Port (as documented by Loveridge)), the Taximan will find an optimal solution with regards to the cost of the vehicle (and the attractiveness of said vehicle to the clients) and the MPG. (Economics 101.)

    Coming back to this *claim* that BL&P’s use of expensive fuel somehow benefits them…

    Please note that:

    1. BL&P invested a great deal of money in “low speed diesel plant”, which is what is nominally used to generate most power, and which consumes the lowest cost fuel.

    2. BL&P do not derive *any* benefit from consuming more expensive fuel. (A fact agreed to by “Baje Engineer”.)

    My last points for this evening…

    @Anonymous: “And how much would you invest in fuel free (alternative fuel) vehicles?

    1. BL&P have been asking for permission to invest in alternative energy solutions from this and the previous Government for *years*.

    2. The wind farm has been tied up by “Planning” because of objections by *Bajans*.

    3. The other alternative energy solution projects are awaiting the approval of the FTC.

    3.1. Anyone else yet see a common problem for Consumers here?

    4. It is to the *benefit* of BL&P to seek distributed (read: alternative; read: feed-in; read: self-generation) power because it means they don’t need to invest in (read: pay for; read: take a loan out for) additional power generation capability.

    5. Please forgive me for this, but you’re all focusing your anger at the wrong fundamental issues, because you don’t actually understand what you’re talking about!

  12. Crusoe Avatar
    Crusoe

    Pardon my little interruption, I do not have the detailed knowledge that some of you have.

    But strictly from a commonsense viewpoint, Baje’s suggestion indicates that the company uses the gas turbines more than it would be expected.

    Assuming ‘hah’ that they are reasonable, why would they do this?

    It would point to need i.e. the must because their other ‘cheaper’ alternatives cannot now provide the needed capacity.

    I.e. Baje’s point seems to strengthen the BL&P case that they urgently need more funds for redevelopment of cheaper capacity.

    That is what I am getting from these exchanges.

    Unless of course, he is suggesting that they are using the gas turbines when there is no need?

    Doubtful.

    For the consumer, it still comes do ..conserve, conserve, conserve.

  13. David Avatar
    David

    @Hants

    Take the point about the need to conserve but don’t you recognize the challenge? Bajans are being conditioned to aspire to success. How do we define success? There is a basket of material trappings which must be owned or accessed to achieve success in a modern Barbados. How do you tell these same people to conserve? Some cataclysmic will have to it.

  14. Hants Avatar
    Hants

    @ David

    You are correct. They will only start to conserve and “cut corners” when they start losing more income or get laid off.

    Barbados is heading for a crisis. There will be no traditional economic boom in the rest of the world economies.

    It appears there will be long recovery lasting a few years and Barbados will suffer.

    To be honest, I have become “energy conscious” because it is shoved down our throats in Canada.
    The electricty bills come with energy conservation tips and we get cheaper rates on weekends.

    I have also lost about 75% of my income
    the last 2 years and I have had to dramatically change my spending habits.

    When this happens to some Bajans they will start to save Electricity and water.

    Then again Barbados is a magic kingdom and is not affected by what happens in the rest of the world.

  15. Enuff Avatar
    Enuff

    Go buy shares.

  16. David Avatar
    David

    @Chris

    A little advice if we may, you need to understand that some people commenting on this subject may know more than you give them credit. If you want to encourage those people to come forward now and in the future you need to be more accommodating in tone.

    With respect.

  17. Christopher Halsall Avatar
    Christopher Halsall

    @BU.David…

    It would be valuable if those who “may know more” would have the testicular fortitude to put their real names forward.

    Read: Stand behind what they say and claim.

    This then would be submissible and useful…

    Otherwise it is just masturbation….

  18. David Avatar
    David

    @Chris

    It was friendly advice which you can take or not, up to you.

  19. Christopher Halsall Avatar
    Christopher Halsall

    @David…

    If Barbados exists within an environment where people have to (or decide to) hide behind aliases because they fear retribution for what they say, then we’re all screwed…

    Friendly advise…

    Take it or leave it….

  20. Crusoe Avatar
    Crusoe

    David / Chris,

    Really, with an island of between 25o k and 300k people, it is unrealistic to expect that we all can speak freely without fear of retribution.

    As witnessed by both the lip service and the venom spouted politically and the clearly exhibited partisanship, how can you expect everyone to open themselves and their careers to attack?

    Even in USA, remember the case of the spy lady who was exposed because she offended the relevant authority?

    Then again, in a larger country, the opportunities to work in various other organisations and companies are wider, even if not limitless.

    But, in our little island, when even the main construction companies are owned by buddies, do you really expect it to be easy to find another job in the same field, if one has the ‘guns out’ for you?

    Let us be realistic.

    And yes, politcally, we ARE all screwed, I would have thought that you realised that by now.

  21. David Avatar
    David

    @Crusoe

    Thanks for the intervention. There are many examples we can cite other than victimization which would validate those who want to be anonymous. Chris is smart fellow and frankly we are surprised he has not figured that out yet.

  22. BAFBFP Avatar
    BAFBFP

    Mrs. Vivian-Anne Gittens (Top Gun at the Nation Publishing and the Nation Group of Companies which includes Starcom) was Deputy Chairman of the Fair Trading Commission six years ago and resigned… along with Michelle Goddard CEO, Justice Frank King Chairman, the Financial Controller and the Ronald Toppin Minister of Industry and Trade. Should this person not be an easy “go to” for information involving the scrutinising of the operation of the FTC after all of this time? Does anyone get the impressions that this institution is beyond scrutiny?

  23. Christopher Halsall Avatar
    Christopher Halsall

    @David, Crusoe et al…

    Only those who allow themselves to be victims are…

    Sadly, most Bajans are not yet ready to “stand up” and put their real names behind what they say.

    And so they will be screwed until the cows come home….

  24. ac Avatar
    ac

    @BAFBFP
    Yes!

  25. Christopher Halsall Avatar
    Christopher Halsall

    @BU.David: “There are many examples we can cite other than victimization which would validate those who want to be anonymous.

    I’m really rather slow David.

    Can you please bring forward the examples you claim you can cite?

  26. Bush Tea Avatar
    Bush Tea

    Chris
    I for one, am growing a bit tired of your continued childish calls for contributors to disclose their names. What names what?!! …. mine is BUSH TEA. What more do you want?

    If you had the intelligence to focus on the IDEAS expressed how would the name of the person be of import? … except so you could somehow get personal?

    Not everyone needs to have their ego stroked by flaunting their name AND photo to boot… every time they post.

    Some of us actually live very public lives otherwise and make our contributions in ways that you could never match.

    I for one, have absolutely no fear of you or anyone like you…. I just happen to prefer to focus on IDEAS expressed, rather than the personalities. Indeed you would do well to remove that pathetic photo and to adopt a decent nom de plume on BU.
    Maybe then you would be inclined to spend more effort on developing ideas rather than harping on who is behind the actual posts.

  27. David Avatar
    David

    @Chris

    What if Baje Engineer is an employee at the FTC?

  28. David Avatar
    David

    BU has been receiving emails on this matter and with respect to BANGO and the other NGOs who participated in the exercise, some feel the Intervenors were out paced by BL&P and the system. One email was very specific to say the Intervenors should have focused more on:

    The manner in which the company spent money i.e. by way of use of consultants, types of maintenance contracts

    Appropriateness of use of technologies to reduce costs

    The number of managers for an organisation of this size

    Was there a comparative study within the region to which BL&P was benchmarked? Would be interesting for ROK and Chris to feedback if this is constructive criticism.

  29. Anon Avatar
    Anon

    @ Anonymous // January 30, 2010 at 11:33 PM

    Chris
    … you said that you were dyslexic right?!!!

    Annonymous you have made the most serious and acurate statement ever made on BU. The childish chatter of this (only the Lord knows what to call him) is most irritating and nauseating. He is definitely a pain in the ahhhhhhhh!

  30. ac Avatar
    ac

    @Chris
    It is also presumptous of you to think that all bloggers on BU are Barbadians.
    ref:feb1 2010 8.06

  31. Anon Avatar
    Anon

    David wrote

    BU has been receiving emails on this matter and with respect to BANGO and the other NGOs who participated in the exercise, some feel the Intervenors were out paced by BL&P and the system.

    David is a charitable man. But does he really expect that the so called intervenors that he named- going from the balderdash and stupid childish comments that they write on BU- could actually produce agruments that were sane, sensible and of substance to the FTC or any other persons with reasonable common sense in Barbados?

  32. kiki Avatar
    kiki

    Chris, you a definitely small and petty minded. Instead of being so mouthy, full of self try dedicating yourself fully to the task. Applying painstaking attention to detail. Industriousness and the efficient completion of tasks. Stick with the project long enough to see it through.

    It’s results that count btw so get YOUR act together

  33. ROK Avatar
    ROK

    @David

    1. The manner in which the company spent money i.e. by way of use of consultants, types of maintenance contracts
    2. Appropriateness of use of technologies to reduce costs
    3. The number of managers for an organisation of this size

    I have to wonder how much people really followed the rate hearing when these points were raised and dealt with. I think that people are looking for somebody to blame for the rate increase but I think the only blame could be the fact that the FTC wanted to give BL&P a raise.

    The use of consultants is a necessary requirement for presenting utility evidence. They are the so-called experts.

    Those who would write about BANGO and that we were out-paced, then so were the lawyers, Douglas Trotman and Errol Niles, who argued and cross examined at length in terms of how the company spent their money, investments, etc.

    Also out of this league was Dr. Roland Clarke, an energy expert with international experience. Of course he went to town on some of the more intricate matters. Mr Toft, put in his piece as it related to the economics of running the equipment.

    Clyde Mascoll was also out of his league too. Yet he not only did some damage, he put in a googalee that broadside their wicket.

    If you look at the decision, you will see that with all the arguments, the area where the company gained concession was where the money was. The other points of principle and facts seemed to have been of no persuasion to the Panel for a decrease in the rates.

    It became clear that we had to put in a sterling contribution in order to sway the FTC. On our part, by an extensive dissertation on the impact on the poor, we got them to take into consideration at least 50% of the marginal group rather than the 25% contemplated; which is 100% increase in households.

    Not to mention BANGO’s Douglas Skeete, obviously with less of a clue, but advised the FTC on several occasions not to place any weight on the studies done in the USA and demanded that the FTC instruct the BL&P to commission Caribbean studies.

    So for all those with sour grapes in their mouths, one thing I know is that 5 intervenors represent a formidable opposition, because they bring diversity. The strategy of an intervenor is to hold onto to one topic, study it and do all the research on it. i.e. have a focus on one thing.

    Collectively, they represent a powerful force that leaves no stone unturned. To question the competence of the intervenors is a mere red herring.

    There is not an intervenor that did not pull their weight; even Malcolm Taitt.

  34. ROK Avatar
    ROK

    not to mention that we have won more battles than we have lost over the last 5-6 years.

    not to mention that we have contributed to utility regulation in Barbados by the precedent of the Appeal Court decision in the C&W Confidentiality hearing and subsequently persuading the FTC to order the company to produce annual regulatory records for public consumption. Now we can monitor them from year to year and not wait for a hearing.

    When will we stop crying down one another? What is the real purpose of it? Some people go about it so diligently.

  35. Anon Avatar
    Anon

    Who is we?
    We were not talking about the men who you mentioned that are men or merit, we were taking about the morons.

  36. ROK Avatar
    ROK

    Morons like you that stayed away and contributed nothing?

  37. David Avatar
    David

    @ROK

    BU knows you and Chris along with the other Intervenors would have done your best. Barbados owes a debt of gratitude to you guys who do public service. We can’t help but feel the fact that the Intervenors are resource poor relative to the utilities this makes your job herculean. It is a system which is stacked against the PEOPLE.

  38. BAFBFP Avatar
    BAFBFP

    ac you still livin’?

    Bushman, yah mus’ fagive Chris… He lacks human appeal… The man is a logic based entity… genetically programmed to “drill down”! It is a mild form of autism…!

    ROK when you think ’bout it, there should theoretically be no need for intervenors. The commissioners are there for the purpose of defending the interest of the consumers as well, and those commissioners were eminently qualified… So what the f#ck went wrong?

    Again, does the Barbados Light and Power Holding Co contribute to the polical campaigns of either/both parties, and if so, HOW MUCH…?

  39. ac Avatar
    ac

    @BAFBFP
    Yes and loving

  40. ROK Avatar
    ROK

    @David

    While we may be under-resourced and that resources may allow us to better challenge the company, that is not what I am getting coming across with one fella talking about morons.

    I say it again, each intervenor only had to get in one telling blow and a good look at the decision will show where Intervenors contributed to eroding a piece of the company’s case.

    What I will say is that this must be viewed against the backdrop that it was the sentiment of the Panel coming through, that the company asked for little and it should get it. Even some of the less experienced said it. Mascoll and BARP representative both said that we have to give them something.

    In order to counter the situation, the best strategy was to target the impact of rates on the marginalised and advocate a widening the net for those at the bottom. All the other points were merely academic and did nothing for reducing the rates or lessening the impact.

    The truth is that further consumer research was needed if we were to put up a stronger argument. In particular, a study of the usage profiles of the marginalised to establish a more realistic minimum usage in the block structure.

    The other two things I would have done with the resources and the time. First, a study to establish that electricity usage is inelastic for low income consumers; and second, present two witnesses; one consumer from the marginalised group and one from the group that could pay.

    I did put out a call for consumers to come forward but none came forward. This would have called for consumers that had collected bills over the years.

  41. Christopher Halsall Avatar
    Christopher Halsall

    @BU.David: “What if Baje Engineer is an employee at the FTC?

    Possible…

    But then they would have known that the report “Baje Engineer” (anonymously and indirectly) referenced recommended a *much* greater Rate of Return than BL&P ended up getting…

    …and there was no “smoking gun” about the turbines which wasn’t dealt with during the hearing.

    Please note that I asked above (twice) for “Baje Engineer” to define “what was the “interesting conclusion” drawn” in the report.

    The answer to this question has not been provided.

    Please forgive me for being pedantic (and possibly autistic), but we need something we can actually work with.

    We can’t work with innuendo….

  42. ac Avatar
    ac

    a representative is onVOB taking questions on the recent rate hike Feb/3/2010/6.30p.m.

Older Comments
1 2

Leave a Reply to BAFBFPCancel reply

Trending

Discover more from Barbados Underground

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

Continue reading