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Chief Marketing Officer Stephen Worme, Barbadians Want To Examine The Analysis On Solar Energy

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Stephen Worme, Chief Marketing Officer, BL&P
As part of a pilot programme, BL&P has introduced a Renewable Energy Rider “to permit small customer-owned wind and solar photovoltaic systems to connect to the grid” to generate electricity for their own use and sell surplus back to BL&P. Provision was made for up to 200 connections but the last public report I saw suggested that less than 10 consumers had signed up.
Andrew Brathwaite

Chief Marketing Officer Stephen Worme of the Barbados Light and Power Ltd (BL&P) is quoted in the press suggesting that “international oil prices are predicted to rise and it would be unrealistic to expect the Barbados Light & Power Company not to pass on the increase to electricity users or to expect Government to subsidize it for “any extended period of time”  BU’s best research contradicts Worme’s forecast however we  concede that there is a known volatility associated with oil prices.

A couple years ago when the price of oil skyrocketed to USD140.00 plus per barrel it sparked a robust national conversation about the mitigating steps which should be taken.Two years later we are still talking with no semblance of a Renewable Energy Program to be mobilized any time soon.

Whenever Chief Marketing Officer Worme as been asked the question about using solar energy to complement fossil power generation at BL&P, he has resorted to the excuse of non-viability. By BL&P’s logic the price of oil has to reach a higher price point to ensure an acceptable rate of return on the  investment. At no time has BL&P proffered any analysis to the public to support its argument. Why should they anyway if the media and stakeholders, who should be curious, have not made the request.

Mr. Worme can you share BL&P’s analysis with the public so that it can inform the national conversation on how we should effectively and efficiently design a Renewable Energy Program?

Have you approached government about making concessions which would reduce the cost of a solar project?

Given the national benefits to be had of implementing such a project  wouldn’t government be a willing partner?

Frankly we are too intelligent a people to be accepting Chief Marketing Officer’s ‘opinion’ that the cost to develop solar energy is prohibitive when compared to fossil fuel as the raw material. What is stopping BL&P and government approaching a reputable solar vendor and negotiating a position which would positively affect cost to the end consumer?

The has come for the bullshit to stop!

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110 responses to “Chief Marketing Officer Stephen Worme, Barbadians Want To Examine The Analysis On Solar Energy”

  1. Hants Avatar
    Hants

    When oil hits $200 or more a barrel, then you will see a change.

  2. Quest Avatar
    Quest

    Who writes this crap? If you are so interested then do your own homework and post it on this site for all of us. Can you really expect to ask a company to do the homework for you when its their product that will be affected. If you think there is really a cost savings why not investigate it and install and let us know how it goes. And just to add, when I have looked at it in very general terms there is no money to really be saved unless the price of gas sky rockets again – then sun powered become more viable. Why do you think half of the world is not rushing to install sun power cells on their homes.

  3. Raw Bake Avatar
    Raw Bake

    Not as long as there is a guaranteed ROI sanctioned by the good people of Barbados.

  4. Paradox Avatar
    Paradox

    The comment made by Mr. Worme is no surprise to most Barbadians.He is a paid magician; to perform for the company which hires him.
    Our problem: (1)Only one company which has been allowed the privillegde of being the only provider of manufacturing of electricity for over a hundred years with no politician with ‘galls’ to change the state of affairs.It makes no difference how loud we shout. BL&P and government are cognizant to the fact that we will just complain on the blogs. Mr. Worme should come out and state clearly what we believe. ‘You are crying out for renewable energy’, so you must pay a high price for it.The installation of solar would make it too difficult for the company giving excuses for an increase the next time.

  5. Paradox Avatar
    Paradox

    David:
    That last paragraph should was meant to be deleted; should have finished at the end of ‘next time.’

    There is no need for Mr. Worme to spell it out to us; Bajans are cognisant to the fact that BL&P is in the business of making money and most importantly is that of his shereholders are happy year after year.
    Like it or lump it, Bajans cannot do any better because our politicians have let down the public to allow BL&P to opperate as the only generating facility

  6. John Avatar
    John

    Most Bajans are petrified of electricity and rightly so.

    It can kill if you don’t not know what you are doing. Even if you do know it is still dangerous and can be equally deadly.

    You are not going to get your average Joe in Barbados tinkering around looking for a solution to supply his household with electricity on his own.

    I think a change will occur (if it hasn’t already) when the price of electricity reaches a value where the individual householder is motivated to hire the technical resources to provide the means to at least stabilise and possibly reduce the electric bill.

    I think it will be based on the perception that there is a technical resource that is capable of delivering a safe and effective solution and that will not rip off the householder.

    The technical resource should be perceived to be dependable and provide reliable service and be expected to be in business for “ever”.

    Those requirements are hard to meet for an “entrepreneur” starting up and yet there is obviously an opportunity there for those with the sense, technical background and courage to grasp it.

    Companies do exist with the know how.

    I guess a question is would BL&P diversify and provide this additional service. That is really an issue for its directors to determine. Why should it if it doesn’t fit with its core business.

    Likewise any existing company with the technical know how.

    We outside can only pontificate.

    A few brave souls may make the effort to fill the perceived void.

    It is an interesting time we live in for here lies an opportunity for a known or unknown company to grasp. The requirement for technical knowledge will limit the participants but there are other considerations.

    On one hand, a fall in the oil price could wipe out the market demand for those brave enough to enter. On the other hand a well thought out and delivered service could make the provider of that service very prosperous!!

    Do Bajan entrepreneurs have the staying power, technical background and discipline to make it work?

    Maybe I have it totally wrong!!!

    I can still try to stir those with the technical know how to action.

  7. David Avatar
    David

    @Quest

    Do you appreciate that the BL&P is not any old company selling rock cakes and biscuits?

  8. Caswell Franklyn Avatar
    Caswell Franklyn

    David
    Below is a copy of an article that I wrote for Nation in January this year:

    With the news that the Barbados Light and Power Co. Ltd. has recently received permission to erect a number of wind turbines, an old Barbadian saying has come to mind: “there is more in the mortar than the pestle.”
    Apart from being an ugly blot on the landscape, wind turbines are expensive to build and maintain; the adverse effects on the health of people who live in close proximity is still the subject of research and debate; and they do not produce a consistent supply of electricity. The only significant benefit of erecting those turbines would go to the manufacturers. They would have sold some very expensive equipment, and if the people/guinea pigs of Josey Hill do not get sick, the manufacturers would be able to debunk the claims of their international opponents.
    On the other hand, Government should be encouraging the production of electricity from the sun. Solar power can provide the Barbadian consumer with more than just a warm bath. It would be cheaper to erect solar panels for electricity generation. They are less expensive than wind turbines; no maintenance is required and can last a lifetime; and they produce a consistent supply of electricity. As a matter of fact, solar panels can produce electricity whenever there is sunlight even in overcast conditions.
    I understand why solar panels would not be the preferred option for a power company. Once the cost becomes more competitive, individual households and businesses would be able to erect their own and therefore eliminate or reduce their reliance on the power company.
    In anticipation of the obvious question, what would happen at night? Batteries that are charged from the system during the day can maintain power at night. Failing that the supply from BL&P can be used as a backup. This is not science fiction. In Florida persons who use solar energy to produce electricity are allowed by law to sell the excess to their local power company. The consumer turn supplier can even receive a cheque at the end of the month from the power company. As an additional incentive, the United States Federal Government allows a deduction of 30% of the cost of the system for income tax purposes.
    While I understand why BL&P would not push for solar panels to produce electricity, they are in the business to make money: I cannot understand why successive Governments remain so myopic. They should put in place a regime of tax incentives so that the average household can acquire solar panels for electricity generation, or is there more in the mortar than the pestle.

  9. David Avatar
    David

    @Caswell

    Your comment is on point, the question is when does the government in partnership with BL&P make the move?

    Do we wait until the price of oil reaches USD190 per barrel?

    Commonsense says we should ready the country now!

  10. george Avatar
    george

    I find this discussion so stimulating. As I look at this I find myself thinking of an article I read today. dubbed “for the love of caricom” whch somehow seems to reflect us as a people in the region. The article started something like this: Agreeing to agree at a later date: Time Wastage and verbal flamboyance in caricom meetings. The writer goes on in the document to speak of disenchantment and pessimism concerning the future of regional integration and the prosperity of the peoples of caricom .
    Reading this issue about the electricity problem in Barbados seems so similar to the one in my country. I can conclude while leaders pussyfoot and mark time, the region is facing numerous existential threats. We are becoming poorer and more vulnerable to external and internal economic and environmental threats. As this continues from country to country it is the caricom poor who suffer the most llanguishing in poverty and despair over an uncertain future. Quoting from the writer of the article who ends it by quoting Buju …. only hike in the price arm and leg we haffi pay while our leaders play / like nero fiddle while Rome burns.

  11. Brutus Avatar
    Brutus

    There is always so much negativity, which is frustrating, but hopefully one day it will propel enough people into actually doing something instead of just complaining.

    Here are some links that should be interesting:

    http://www.iadb.org/en/news/news-releases/2010-12-16/idb-barbados-will-reduce-fossil-fuel,8859.html

    http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=35600282

    Here is an extract:

    1.12 RE Implementation Potential. As shown in figure 1, the implementation of utility scale wind farms (10 Megawatt (MW) or more), biomass cogeneration (20MW), waste to energy (13.5 MW) and SWH are economically and commercially viable (when compared to the avoided cost of diesel, line marked in red in figure 1);
    therefore, these technologies are all recommended and may operate below the avoided cost of fossil fuel. Even today some of the PV technology would be commercially viable in Barbados and it is expected for the rest of the PV
    applications costs to drop in the future. The overall RE potential that could be deployed is estimated at 28.9% of the total installed capacity of electricity generation (in terms of MW).

  12. Straight talk Avatar
    Straight talk

    It might be helpful to this discussion if Mr Worme would provide a graph displaying the 24 hour consumption (generation) of electricity.

    I think there is a strong possibility, not considered above, that the peaks would occur during non-solar production.

    Without massive battery back-up by consumers, BL&P would be obliged to maintain the capacity to guarantee supply under all conditions, so effectively maintaining current infrastructure, even though daylight demand would fall.

    Naturally the “dark” supply would have to rise in price to reflect this and maintain viability.

    Result – no change,

    Until infra-red PV cells are commercially viable, or battery or hydrogen storage is economically widespread, solar energy is not for the majority.

    Windpower is costly, noisy, ugly, inefficient and unreliable – see the Denmark & Germany debacles.

    There are technologies in the pipeline now which may transform energy generation, but at the moment we are at the stage of the first motor cars requiring a man in front waving a red flag.

    If we are really serious about addressing the ever increasing cost of energy in the short term, we should investigate wavepower or self-contained nuclear “batteries” both immediately available off the shelf with 24 hour performance.

  13. PRETTY BLUE EYES Avatar
    PRETTY BLUE EYES

    Why does CBC, (government owned station) continue to show documentaries on renewable energy especially Solar. I thought it is to educate the man on the street about the benefits of solar powered homes etc, not to facilitate wind turbines as BL&P would like to have, seeing that it is also a controversial topic especially to those folks in St.Lucy

  14. just only asking Avatar
    just only asking

    I am technical incompetent so i cannot get into the debate about wind power versus solar power. A friend of mine who just returned from england told me that there solar tiles in use in Great Britain being placed on roof tops which are used to generate electricity.

    If the issue of bl&p having to purchase fuel from SOL’s subsidiary can be resolved, the cost of energy might be cheaper. This is a debate i want to see and I want Mr. Worme to engage the barbadian public on that arrangement. Nothing has changed since the plantocracy system was introduced in barbados. A few people cream of the wealth by explotiing the masses, facilitated by the new negrocrats (I borrowed that term from owen aurthur).

  15. Rosemary Parkinson Avatar
    Rosemary Parkinson

    Mr. Worme took the time to come answer all kinds of questions that I asked. Why he chose me I do not know. But can say that he was patient and answered my concerns with what he perceived to be the truth. In my last blog about BLP I guess something hit home that I should be singled out for a one and one confrontation of questions and answers…just as I put up how I felt, he needs to be heard too. So I decided to wait for his answers in writing re my concerns in true fairness of (a) giving him a chance to give me the information to my questions as his company sees it…and (b) for me to do what is fair and blog this information in a correct manner so I understand and the people of Barbados understand…or not! So will wait for Mr. Worme’s answer by e-mail to all I posed to him. And I will continue to pose questions re some grey areas that bother me as a consumer and I have right to hear the other party on these matters…whether I agree or do not…Mr. Worme is a warm and caring man but he is doing what we all do….standing up for a company whether wrong or right because he is an amazing loyal man to the business that he is in…how wonderful if so many of you could have such a man in your companies who stands up to the crap you are doing in the name of your livelihood.

    What i will say is this…in Germany in 2009 I visited a small village in Germany and seeing a lot of solar panels on the roof the next door neighbour.. I found out that this gentleman (in Germany where there is winter and summer) put solar panels across his roof…creating electricity not only for his entire household but was able to generate enough to sell back to the electric company at a profit thereby paying for his investment. There is a gentleman I read about right here in Barbados whose story was in one the local newspapers about his becoming totally solar running his entire house from his solar panels. I thought how lovely it would be that Light & power got rid of all those awful poles and their expensive equipment that seems to be always crashing, and paid or lent money to people to place solar panels in the community – they certainly have the fund to start…community by community..and .I would not mind paying them a little something for the installation and maintenance …we would not need bloody fuel…and please do not tell me the technology is not there…from what I understand within one year at today’s prices, and knowing that fuel going up to excessive proportions again….. those solar panels could be paid for.. On the other hand perhaps banks could renege on lending money for more cars and use those available funds to lend for solar heating….At the end of the day we can demand choices…we cannot continue to sit back, talk about what is wrong in government and our Light & Power system ’till we blue in the face and cannot breathe….how about knowing the route we should take, attack our banker for loans to go solar or perhaps (God forbid!) buy a cheaper car to share within the family selling off the extra SUVs and other must-haves-so-the-neighbours-will see-us-as- successful-affluent people which we are actually very fast becoming not! and investing that money to something that will create a better life for our future generations. It is actually not up the The Barbados Light & Power – (by the way, if truth be known, sold out to Canada by its own shareholders because of a greedy attractive offer of a huge price over the value of their shares. Shame. But you know what? stop crying about Barbados no longer being in the hands of Barbadians…it is Barbadians who sold off their country to the highest bidder. Act on the information that is available to you and demand a lo9an with low interests in the interest of the community being able to save energy, make Barbados the first island to do this fully…and guess what Sir Bank? perhaps giving back to the community that has made you so darned rich and for which to date you are showing very little loyalty back could bring back rewards you never thught possible…like parhaps to start with …confidence!!

  16. David Avatar
    David

    Whether because of political expediency or not Opposition Leader has jumped into the fray. It is an issue which will have some resonance with Barbadians given the times. Whatever the motives the different stakeholders have it is a conversation we need to have.issue which will have some resonance with Barbadians given the times. Whatever the motives the different stakeholders have it is a conversation we need to have.

  17. John Avatar
    John

    It seems to me that there are two costs for electricity which the consumer bears.

    The first is for the electricity itself. This contains the component from which BL&P makes its 10% return, pays for its depreciation of plant and equipment and keeps its employees employed.

    It is fixed by FTC.

    The second is the FAC which can vary all over the place and which represents the cost of fuel.

    Noone in Barbados has control over it.

    It seems to me that both the consumer and BL&P are adversely affected by this second component.

    If the consumer reduces his consumption to fight the increase in the second component BL&P will sell less and get less from the first component so it becomes harder for it to meet its 10% return and upkeep its capital.

    Unlike any other company in Barbados it has hundreds of millions of dollars in capital invested. OK, maybe the Arawak Cement plant and the Telephone Company might be up there but it is difficult to rattle off names of others in the same boat.

    Their capital depreciates as it is used. It has to be maintained and ultimately be replaced as technology changes. The Telephone Company is probably more affected by technology improvements.

    The consumer won’t be held to ransom by the FAC.

    He will reduce consumption or perhaps even stop consuming.

    That will hurt BL&P.

    The solution has be part of a joint effort.

    Both parties are in jeopardy.

  18. Carson C. Cadogan Avatar
    Carson C. Cadogan

    I can’t believe that you are giving credence to anything worme has to say.

    If worme say,”walk”, run like hell. Very little that he has to say makes any kind sense. What he says must be taken with a pound of salt.

    He is a true propoganda Minister. Joseph Goebbels would have been proud of him.

  19. Carson C. Cadogan Avatar
    Carson C. Cadogan

    Barbadians are not totally blameless in this instance. After all we elected to sell our shares to EMERA. They didn’t take them at gunpoint. We were advised to sell the shares by the Management of the Barbados Light and Power and we accepted their advice. At the time I thought this was crazy advice knowing the Management of the Barbados Light and Power has a long history of misleading Barbadians. So we ignored all past actions of the Barbados Light and Power Management and we allowed them to fool us one more time.

    http://bajan.wordpress.com/2011/01/10/emera-about-to-steel-barbados-light-power-co-ltd/

    Christopher Halsall | January 11, 2011 at 12:25 PM |
    It should be noted that it is the fiduciary duty of directors of any public company to maximize the returns for their shareholders. The directors have no such obligation to their consumers.

    I spoke to a friend of mine who is a long-term minority shareholder in BLPH. He said he was waiting to see what the larger (institutional) local holders were going to do, but if they sold their shares he said he would as well.

    Short term gains should never outweigh long-term losses or risks.

    As soon as BLPH is 50% plus one share in the control of a foreign entity, the game is over (IMHO).

    Carson C. Cadogan | January 11, 2011 at 3:01 PM |

    “Rawdon Adams on the Barbados Light & Power fire sale”

    Over at BARBADOS FREE PRESS is an article by RAWDON ADAMS the son of former Prime Minister TOM ADAMS.

    RAWDON is bitterly opposed to the sale of the Barbados Light and Power Company to overseas interests.

    http://barbadosfreepress.wordpress.com/2011/01/08/rawdon-adams-on-the-barbados-light-power-fire-sale/

    IT IS REQUIRED READING FOR all BEFORE ANY THOUGHT OF SELLING BARBADOS LIGHT AND POWER COMPANY SHARES.

    A few comments from the thread.

    Read and weep!

  20. John Avatar
    John

    Straight Talk

    It might be helpful to this discussion if Mr Worme would provide a graph displaying the 24 hour consumption (generation) of electricity.

    I think there is a strong possibility, not considered above, that the peaks would occur during non-solar production.
    +++++++++++++++++++++++++++++++++++++++++++++

    You find that out by reading your meter at 8pm and 8a am.

    I got a friends who consume most electricity when they sleep!!

    There must be a simple explanation but for the moment we realise we got to figure it out if they want control of what they spend on electricity.

  21. John Avatar
    John

    Carson

    The biggest disservice done the electricity consuming public was to subsidise the FAC for a year.

    Remember, some clown decided GOB would keep the FAC at 23 cents per kWh back in October 2007.

    What we are seeing now we would have seen and dealt with years ago.

    Tell us who the politicians took the loan from on our behalf and what are its terms?

    Because while having to deal with the FAC now we also got to deal with the fact that we owe somebody probably in excess of $100 million.

    We have been truly FACT by some real clowns.

  22. Home Avatar
    Home

    BL&P should show in print Government taxes on the electricity bill. You will find that the:
    fuel charge $0.473105
    Vat 17.50%
    all represent monies going to the Government.
    Customer charge
    Energy 1st Blk $0.15 per kWh
    Energy 2nd Blk @$0.176 per kWh
    goes to the BL&P

    Whatever we call we call Worme we ought to remember when the then leader of opposition Mia said that it will be a burden on the poor people to placed fuel costs on them. We cannot deny that she said that. We complain, but if there was one thing that the DLP government could have used was that advice.

    Along with increase VAT on food items and across the board, we are paying increased road tax, increased license fees. Still we are asked to eat healthy on the remaining monies. Government should subsidize now on electricity or at least remove the VAT from the electric and water bills. We are paying VAT on everything else.

    Increase your Taxes on the income bracket that is able to take a family on vacation for 3 to 4 weeks annually. A two week vacation is still a vacation.

  23. Carson C. Cadogan Avatar
    Carson C. Cadogan

    HOME

    This is what will ease the situation.

    We need a private public partnership on this vexing issue.

    In spite of all the pain and suffering of electricity consumers, the Barbados Light and Power Company is making profit hand over fist.

    Therefore what the Barbados Light and Power Company needs to do in the public interest, their consumers and customers, is to absorb some of the increase cost to them for a period of one year. They can afford to do that as they are awash in after tax profits.

    On the other hand the Government needs to remove the VAT on all electricity bills for the corresponding one year period.

    That would give electricity consumers some much needed breathing space.

  24. Caswell Franklyn Avatar
    Caswell Franklyn

    For those of you who think that the generation of electricity from solar panels is not viable, let me tell you a story.

    A non-national built a house in St. Joseph and did not have a connection from BL&P. He had a stove, fridge, washer, drier, television and other household appliances all of which were supplied from the solar panels. He lived there peacefully for some time until he made one fatal mistake, that was, he introduced a tourist restaurant to solar energy. Rather than ask him to assist this country by introducing that technology in order to lower our dependence on fossil fuels, he was reported to Immigration and he was asked to leave the country. Bye bye solar power, hello massive profits for BL&P.

  25. David Avatar
    David

    Slightly off topic: BU understands BL&P senior management ‘encouraged” all employees to sell out to EMERA. Perhaps someday the truth about the EMERA deal will be made public.

  26. David Avatar
    David

    An accolade to anti-American who single handedly took on Stephen Worme and BL&P today on the talk show. In 10 minutes he showed what our week kneed journalists have not shown themselves competent to do. The only short coming in the exchange was an absence of discussion about RE sources of energy, a great disappointment. today on the talk show. In 10 minutes he showed what our week kneed journalists have not shown themselves competent to do. The only short coming in the exchange was an absence of discussion about RE sources of energy, a great disappointment.

  27. me Avatar
    me

    i am sorry for those poor persons and pensioners whose elec. bill is at a ridiculous rate now. i KNEW that from time those bajan money hungry policyholders in the BL&P sold their shares to that canadian co. all hell would have broken loose with our electricity bills. i know mr worme would have to justified and site that crap about oil prices etc but at the end of the day that canadian co. has to give huge profits to their shareholders and they don’t give a damn about us in this third world country. we bowed to their expected beliefs, (we cannot see beyond a dollar).

    i will say that my bill DOES NOT go over $100. i changed my bulbs to the energy saving ones, i turn off my computer at night, i have un-plugged my DVD, threw out the microwave and replaced it with a toaster oven. unplug my fridge when not at home and it there’s no cooked food in it. (my fridge works perfect) so don’t even try telling me that this damages the fridge). i am determine that they will not get my money. wash once a week, some things i wash by hand. I am determine, they will NEVER get more than $100 from me. I have a relative whose bill DOES NOT go over $60.00, yes she unplugs her fridge too.

    why must barbados not look to do something different and new? must we be same o same o, all the days of our life? they are other ways of generating electricity, look into to it.

  28. X Avatar
    X

    @ Home – see this link (http://www.blpc.com.bb/photos/BL&P%20-bill%20charges%20050711-r.jpg) for a breakdown of who gets what from an average 300 kWh bill (approx $235).

    – Gov’t gets 15% of the total bill in the form of VAT.
    – 60% goes to BNOC to pay for the fuel used in generating electricity and this includes the actual cost of the fuel plus the excise
    – The remaining 25% is what BL&P gets to cover costs and and an approximate 10% return on their high capital investment. This is something that thee government approved through the company’s regulator at the last rate hearing.

  29. X Avatar
    X

    I would also encourage people to have a look at page 18 of BL&P’s 2010 annual report: http://www.blpc.com.bb/photos/BLP%20REPORT.pdf

    Here is the breakdown of where your bill wen tin 2010

    53% Fuel
    18% Labour & Materials
    14% Taxes & VAT
    7% Capital Investment
    3% repayment of borrowings
    2% Insurance
    2% dividends
    1% interest and finance charges

    so only 2% of the bill goes to those evil Canadians; in fact a little less as they own only about 80% so 1.6%.

    People need to stop the conspiracy mongering, accept that they should bear the full cost of fuel imported to generate the electricity they use, and if anything pressure the governmeent to reform the excise tax from a progressive rate to a fix amount per quantity. The Government is actually benefiting at the expense of everyone else when oil prices rise because of how the excise tax (and for that matter VAT) is calculated.

  30. David Avatar
    David

    This. matter of high power rates has rallied Bajans in a way not seen for a long time. The government is left with no choice with the budget looming to ease the tax on electricity bills. They will be reluctant to do it because of contracting govern revenues but the flip side is that it should generate more consumer confidence to spend. A rock and a hard place position.government is left with no choice with the budget looming to ease the tax on electricity bills. They will be reluctant to do it because of contracting govern revenues but the flip side is that it should generate more consumer confidence to spend. A rock and a hard place position.

  31. David Avatar
    David

    The issue of preferred pricing for oil put in pace to mitigate price volatility is an issue as well.

    However we need to start discussing RENEWABLE. ENERGY.

  32. X Avatar
    X

    David, well put. The Government can’t afford to subsidize the fuel as was donee in the past but the can afford to reform the tax approach. Because fuel is up they are taking in greater tax revenues than would likely have been expected from excise and VAT. I expect they’ll do something with one or both of those items next month.

  33. X Avatar
    X

    And the RE is very key. BL&P need to update the public on the trial project where some are selling back into the grid. They need to refine the rider which currently is paying too much back to those sellers because of the way the price calculation was formulated – it shoudl simply be at themarginal rate of generation + fuel and vary monthly, perhaps to be calculated and approved by the FTC as is the case for the fuel charge. And they need to encouage more people to put these things in place. Its in everyone’s interest to reduce the amoutn of forex we spend on fuel. Enough sunshine falls on this island each and every day to power the whole place.

  34. Carson C. Cadogan Avatar
    Carson C. Cadogan

    X

    “pressure the governmeent to reform the excise tax from a progressive rate to a fix amount per quantity. The Government is actually benefiting at the expense of everyone else when oil prices rise because of how the excise tax (and for that matter VAT) is calculated”

    I am not letting the Barbados Light and Power Company off the hook. They have to exercise a better degree of Corporate responsibility to the people of Barbados whom they serve. By all means let the Government make sacrifices for the good of the people. However the Barbados Light and Power Company must be willing to absorb a potion of increased costs. Lord knows that they can for at least a short period of time.

  35. Christopher Halsall Avatar
    Christopher Halsall

    @David and X et al…

    Can anyone tell me where the latest Cable and Wireless (Barbados) Annual Report is available on the Internet?

    It seems to me that many Bajans spend more on telephony than they do on electricity.

    And yet every URL at http://www.candw.com.bb/ results in a 404 message. Even the “home page”.

    Hmmmm….

  36. Carson C. Cadogan Avatar
    Carson C. Cadogan

    Another thing consumers have to consider when dealing with the Barbados Light and Power Company.

    The Barbados Light and Power Company actually profits from incorrect interim bills.

    When electricity consumers are charged much higher electricity bills, the company then does an actual reading of the consumer meter. The difference between what the consumer is charged and what the bill ought to be is refunded in one way or the other.

    The extra money which the consumer is charged is deposited in the Barbados Light and Power Company’s Bank account. These excess funds generate interest for the Barbados Light and Power Company and none of it is passed onto the electricity consumers.

    So again the Barbados Light and Power profits from the misfortune of electricity consumers.

  37. X Avatar
    X

    That’s because C&W sucks at just about everything they do. Like a big splashy 4G announcement followed by a big splashy iPhone launch. Try to find a 4G netwrok to connect to, or an iPhone to buy – not that you would want to pay the ridiculous iPhone rates.

  38. Christopher Halsall Avatar
    Christopher Halsall

    @X: “That’s because C&W sucks at just about everything they do.

    That doesn’t answer my question.

    You correctly pointed out the BL&P AR defines how much money was made by the Company (and other stakeholders).

    I’m trying to bring to the table a comparative incumbent monopoly’s take.

    But for some reason, the “LIME” AR doesn’t seem to be so easily accessible….

  39. X Avatar
    X

    @ CC

    I don’t disagree entirely. But again, the 10% ROE was negotiated and approved by the regulator – a gov’t agency. Hold them accountable. But perhaps this is too high, I don’t have the perspective to judge. I would say though that comparing them to BWA and C&W, the other two major utilities, I would argue that BL&P is more transparent, progressive, responsive and customer friendly.

    Also, your assessment of the intermin bill effect is partially flawed. It can actually benefit you if your interim bill is higher that what was actually used if the subsequent month’s fuel charge is higher than the interim bill month. That is because the usage per the bill in the subsequent month would be lower. But if you don’t belive that you can take pictures of your meter and email them to BL&P every other month and they will base the bill on that. You can also make an arrangement to call in your meter reading every month and they will issue bills on that basis – I suppose they would probably still send the meter reader to make sure you’re not understating the bill. This is another example of progressive nature of the company.

    And before anyone says anything I am not a BL&P employee. David can probably check my IP adress and confirm that I work for a bank.

  40. X Avatar
    X

    Halsall, here you go, links to what you want. http://www.time4lime.com/bb/about_us/investor_relations.jsp

  41. X Avatar
    X

    and your question seemed rhetorical. I would’ve thought a computer savant such as yourself would’ve looked on the company’s current website first or at least second, but certainly before posting such a question.

  42. Carson C. Cadogan Avatar
    Carson C. Cadogan

    X

    Great comments on this electricity issue.

  43. Christopher Halsall Avatar
    Christopher Halsall

    @X: “Halsall, here you go, links to what you want.

    Thank you.

    Isn’t it interesting that on page 18 the Company reports $50.6 million in income after taxation in 2010. And then we should add another $166.7 million for “retained earnings brought forward”.

    Note, however, that Cable & Wireless (West Indies) hold 81% of the shares….

  44. John Avatar
    John

    There is a fantastic business opportunity for Bajans with the technical know how to exploit.

    The FAC hurts both BL&P and the consumer the B&P because it forces the consumer to reduce his consumption so BL&P sells less and the consumer because he pays more for the same electricity.

    The way seems clear for people with the technical know how to make and sell energy derived from alternative sources to BL&P for on sale to the consumer.

    That means the FAC reduces because the BL&P sels a product with a reduced oil component.

    All parties benfit.

    The small supplier with the technical know how because he has to profit from his product.

    BL&P because they sell electricity with a reduced FAC and can reduce costs.

    The Consumer because they pay less FAC and will consume more.

    This must be a win win win situation.

    It needs people with the technical know how to take up BL&P’s offer and make electricity for sale. That electricity will need to meet the specs imposed by BL&P so it is no easy ride for the supplier.

    It will not happen overnight but if the oil component is to be reduced, people who can have to do.

    All parties can benefit.

  45. John Avatar
    John

    Regarding VAT, if I understand the FAC to be a cost passed on to the consumer the BL&P does not mark it up.

    There is an argument which might go, no markup, no value added, so no Value Added Tax.

    BL&P should collect and pay VAT on anything they add value to like the rest of businesses in Barbados.

    Every little bit of reduction of the utility bill will help.

  46. Christopher Halsall Avatar
    Christopher Halsall

    @John: “The Consumer because they pay less FAC and will consume more.

    John et al…

    Here’s a wild idea…

    Why don’t we all consume less?

    Or is that simply not an option in our modern world?

  47. Christopher Halsall Avatar
    Christopher Halsall

    @John: “Regarding VAT, if I understand the FAC to be a cost passed on to the consumer the BL&P does not mark it up. There is an argument which might go, no markup, no value added, so no Value Added Tax.

    There is indeed such an argument.

    I support your observation.

  48. Josquin Avatar
    Josquin

    @ X
    “People need to stop the conspiracy mongering, accept that they should bear the full cost of fuel imported to generate the electricity they use, and if anything pressure the government to reform the excise tax from a progressive rate to a fix amount per quantity.”

    Very interesting comment. Essentially, having relative prices reflect relative costs is efficient in that it encourages consumers to choose the alternative that uses fewer of the island’s resources. I agree with the government’s fuel price mechanism policy. If the previous administration had allowed the domestic market prices of petroleum products to reflect fully the cost increase without any further government intervention (subsidies), some dramatic changes in consumer habits would have occurred.
    On the demand side, consumers would have made drastic readjustment in their consumption patterns; e.g. firms would have explored alternative sources of power, and household would have reduced on oil consumption by a series of measures ranging from buying cars with lower fuel consumption ratings to economizing on electricity. Additionally, this would have provided the incentive to develop technologies to search for alternative sources of energy, such as solar heating.

    Under the past arrangement, although the real cost of petroleum rose, consumers were not presented with domestic prices that fully reflected this. They paid the full extra cost, but in terms of taxes used to subsidise the prices of oil for domestic use. Being unaware of this extra cost, consumers did not have the full incentive to economize on oil.
    Unfortunately, firms and households were making decisions on new capital and consumption that made sense at the subsidized market prices of oil but were wasteful at the real world price.

  49. John Avatar
    John

    For the business opportunity to be really attractive we need to find the source of renewable energy that can produce a kWh for a price that would be attractive for BL&P to buy.

    We know the FAC is at the moment 47 cents.

    Is this the goal that needs to be met?

    What is the rate at which BLP will buy a kWh of electricity from a supplier using renewable energy?

    If the renewable energy source cannot meet that number then there is probably no use in pursuing the opportunity with that source.

  50. John Avatar
    John

    Chris

    Consume less is good!!

    “The more you know the less you need”

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