BL&P Denied!

ftcIt is with great interest BU read the decision handed down by the Fair Trading Commission to DENY the application by the Barbados Light & Power Company Limited (BL&P)  to apply the results and costs of Fuel Hedging to the Fuel Clause Adjustment (FCA). Some will argue that this is a pyrrhic victory given a prior decision by Barbadians to surrender the BL&P -a strategic national asset-  to the Canadian company EMERA.

We understand why a company like BL&P utilizes hedging to protect its revenue position given the volatility that exist in the oil market. What we do not understand is why BL&P would want to pass the cost of hedging and associated gains or losses onto the consumers of Barbados. Surely in the case of a company like BL&P hedging is considered a core strategy for managing the business. The application to pass the cost of hedging to the Barbadian consumer should be regarded as an insult to our level of intelligence.

Can one expect with BL&P’s application being declined that a fallback strategy will unfold? Many of us are acutely aware the Spring Garden generators are old as one example. We need our local INDEPENDENT analyst to share views on the state of the power supply and generation in Barbados. It is too important a matter to allow foreign interest to dictate.

On a tangential note we find the list of FTC Commissioners interesting read Andrew Willoughby and Kendrid Sargeant.

Here is the decision to deny the application of BL&P by the Fair Trading Commission of Barbados:

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The Fair Trading Commission, having reviewed the Barbados Light & Power Company Limited’s (BL&P) Application to apply the results and costs of Fuel Hedging to the Fuel Clause Adjustment (FCA), has moved to deny said Application.

The Commission has determined that:

I. Due to the risks associated with fuel hedging, the BL&P should not be allowed to pass the cost of hedging and associated gains or losses onto the consumers of Barbados.

II. The Applicant has not provided enough evidence to suggest that the Barbadian public is willing to pay for the reduced volatility in fuel prices.

Following receipt of the Application on March 29, 2016, the Commission invited written submissions from interested parties, in accordance with Rule 37 of the Utilities Regulation (Procedural) Rules, 2003 (S.I. 2003 No. 104) (URPR). Five parties, who were granted intervenor status to participate in the process, considered the Application. Several issues of concern were raised by the intervenors, including hedging risk and strategy, related administrative costs and the efficiency of BL&P’s plant.

The Commission reviewed these submissions and also undertook a detailed analysis of the issues involved. This included a review of regional and international fuel hedging case studies, a simulation of fuel hedging within the local market and technical considerations related to the BL&P’s overall plant efficiency.

The findings illustrate that while the implementation of a hedging strategy could reduce the volatility of fuel prices, this potential reduction is often accompanied by a high risk of hedge losses. Also of concern to the Commission was BL&P’s lack of vital evidence to support its Application, such as a detailed hedging strategy and proof that the average Barbadian consumer would be willing to bear the costs associated with a reduction in volatility.

The Decision may be accessed here or obtained from the Fair Trading Commission, Good Hope, Green Hill, St. Michael, Monday to Friday, between 9:00 a.m. and 4:00 p.m.

December 29, 2016

Nekaelia Hutchinson-Holder
Information Specialist
Fair Trading Commission
Good Hope, Green Hill,
St. Michael
Tel.: 424-0260

58 thoughts on “BL&P Denied!

  1. I would want to know what makes Emera think they could get away with gambling “hedging” and make bajans pay for it, in the first place. That was disrespectful to the people on the island, their own customers, to say the least.

    True leaders would make sure a program is put in place so that every home on the island is solar powered for electricity, so Emera can make no more attempts to have bajan consumers pay for their gambling debts.

  2. Watch for a fallout. Emera do not play ‘nice’. Emera could not give a hoot about Barbados or its people. Emera is about making as much money as possible. When Emera first came into the picture here in Barbados, many studied their background, all what was going on behind the scenes of Barbadians – one being the fact that they were being sued by other countries/islands. However, the sell out happened because those at the top of BL&P were about to be put out to pasture (retirement) and the package that Emera was offering would have allowed them to pasture with a bank – sorry BANG – of money in their pockets. What Emera would do once their foot was in the park, is exactly what they will continue to do. Squeeze every bit of juice out of Barbados. With the advent of Emera losing this battle with the Fair Trading Commission and the people of Barbados, perhaps now we shall see if Emera prove themselves to be good citizens or bullies by denying the country the fairly excellent service that their are accustomed to. I say fairly because it was not all that fair and even more so now. I was shocked for instance to find out that BL&P are charging 24 cents on the fuel charge, a rise from 12 cents, when all over the world oil is at its bottom price.

    I am sure Barbadians would also like to be given a list of things that Emera have implemented since their takeover that are not just benefiting their pockets but ensuring that Barbadians have a consistent power supply – there were many reasons given by the old BL&P as to why they had to allow Emera to take over, a list of things that Emera would do to improve the supply and ensure a constant supply too. There was much investment to be given towards these wondrous acts. So what what they done so far? Has that new and improved BL&P really happened? Just asking.

    Meanwhile congratulations Fair Trading Commission and it gives hope that at last you understand that you are there for the Barbadian public. There is so much more to be done and we hope that you will continue on this positive path of ensuring Barbadian rights are held tightly and respectfully.

  3. To be fair to the FTC it based its decision on some good information gathered from regionally and internationally. All the more reason to question why the BL&P submitted the application to pass on the cost/gains of hedging. Their people (BL&P) would have undertaken a similar exercise we are sure.

  4. @ Bellyhurtevenmore
    Good assessment.
    However, you are wrong about the FTC.

    Having a strong and effective FTC was needed when BL&P was under effective local control. That is when sensible decisions were needed and forward thinking planning instituted. Instead, those shiite FTC members back then allowed the local albinos to do as they liked – mainly enriching themselves and keeping their incompetent kin in management positions.
    Wendell McClean warned long ago that we were being exploited …and this was confirmed when BL&P was able to go for almost 30 years without returning to the FTC for a rate review (or any other review of their operations).

    Putting on the screws now (that the horse has left the stables) is a bit like cutting your nose to spite your face. Emera could not care less about Barbados, Bajans or BL&P. They have already extracted significant profits from BL&P (mostly in the form of reserve earnings that SHOULD have gone to shareholders, but which were instead hoarded by management as their private stash). With full management control, the Canadians now can manipulate expenses to include all kinds of external costs – at their whim and fancy; and they can assign any and all kind of ‘management fees’ that they see fit….. all to extract whatever profits they desire from the organisation.

    The only loser now from a ‘strong’ FTC will be Bajans, ….as our electricity supply falls in line with those in many other shiite jurisdictions… anyway, there is always the option of backup generators…

    Selling BL&P (allowed by the idiot Stinkliar) was even more idiotic than his imposition of tipping fees (which could ONLY have been conceived to ensure that we ended up with garbage dumped in every possible cart road…)

    Bajan brass!!!

  5. Bushtea

    Do you mean like the 21% fuel price increase (which the GOB knows about) from the sale of BNTCL to Simpson, who already owns the Esso and Shell distribution network??


  6. @ Tukkleboard
    Boss, the BL&P fuel scam has been going on from Mia’s time… If only Bajans knew…. or had the sense and pride to care…
    If a fella kept slapping your face for years and you did absolutely NOTHING about it … it is only obvious that he will eventually juck out your eye….

  7. I repeat, if Barbados had real leaders instead of shitey, black , greedy, corrupt slaves in parliament, every house in Barbados would have solar powered electricity 10 YEARS AGO, instead of the parasite that is Emera looking for every avenue to keep their hands in bajan’s pockets stealing at will,

  8. It seems as if the FTC has at last found its vial of testosterone . Let us hope it is not too late for Barbados. It is amazing that after all this free secondary and tertiary education that EMERA will try this stunt on the Fair Trading Commission and on Barbadians. But then again we have become a nation of gullible citizens . Have we not?

  9. Please stop the bashing of politicians for every conceivable ill in this country. As citizens of Barbados we have to take our individual responsibilities seriously.

  10. Do you all understand that Canadian companies are in business to make maximum PROFITS by any (legal) means necessary to satisfy their majority Canadian share holders?

    Wunna chose to sell BL&P to a company whose very existence is based on exploiting “opportunities”.

    Bajans will contribute to the “continuous improvement ” of a Canadian company.

  11. Bernard…It’s not the average citizens who sign agreements with, give away and sell state assets to and take bribes from foreign and local crooks posing as business people, it’s the jackasses sitting in parliament calling themselves government ministers, they are the ones to be held accountable, how does that escape you.

  12. And dont get me started on how many decades the useless slaves in parliament been selling out their own people to minorities and refuse to represent the majority adequately or contribute to the upward mobility, enrichment and progress of their OWN BLACK PEOPLE. …but the parasites can always find ways and means to enrich a minority of fellow parasites.

  13. If there were any real leaders in Barbados, they would make sure that they take advantage of the falling prices of the solar units and power up every house in Barbados with solar electricity, get rid of the parasite that is Emera, turn the tables, sell electricity to Emera, 2hat they do with it is their business…, and do not let the usual greedy local suspects Bizzy et al overcharge bajans for those solar units, with their parasitic selves, the government ministers already sold the people’s shares in Emera, no one in Barbados owes them anything.


    This is one matter bajans can take into their own hands, ya do not need to talk incessantky on ya cellphone….. $10.00 a month is quite enough to spend on cell charges, it’s enough to make emergency calls for a month, get these crooks hands out of ya pockets. They are in the Caribbean to rob you and enrich themselves and their shareholders back home.

  15. @Bush Tea
    One says such nice things in the hopes that perhaps they might take note that one is grateful for doing the bloody job they were set up to do. I have never thought much of the FTC – one only has to look at all the unfairness going on in the island to know that they could as well not be there! But as I said there is always hope me dear, always! lol

  16. @ Tukkleboard December 30, 2016 at 8:03 AM
    “Do you mean like the 21% fuel price increase (which the GOB knows about) from the sale of BNTCL to Simpson, who already owns the Esso and Shell distribution network??”

    Don’t be surprised if Rubis is ‘forced’ to withdraw from the retail petroleum market when SOL takes over the sole importation of ground fuels (except LPG) previously undertaken by the BNTCL.

    SOL is on the verge of becoming a veritable monopoly in an area of trade not considered a public utility.

    The big profits lie not downstream at the price-controlled or regulated pumps but at the point of ordering, transporting, importing and wholesaling where there is no regulatory oversight by third parties.

    Would there be a strong case for putting SOL under the purview of the FTC when this pending monopoly of a trading monster comes into being?

  17. I wonder who it is that go to the polls every 5 years and elect the leaders and politicians? I wonder why some of these critics of politicians do not offer themselves to the electorate?
    When consumers are “unfaired” they have the options of either not buying, find another supplier or appeal to the regulators to investigate the matter. As individuals we do have power.
    How many of you had shares in BL&P and sold them for short term gains? How many of you jump on the Privatisation Bandwagon when GOB petroleum corporations are/ were up for grabs.
    We are gradually becoming a nation of complainers. We love to complain . We love to say “It is not my fault”. Where is the Pride and Industry?

  18. @ Bush Tea

    You really do not know Bernard Codrington. I am always serious ;even when I appear to be joking.

    So give Jeff and FTC some Kudos today.

    • On a related note we have Digicel making a song and dance a few months ago that it would eat VAT cost only to advise customers yesterday that pre and post paid rates will be increasing in the New Year.

  19. @ Bernard Codrington. December 30, 2016 at 11:55 AM
    “How many of you had shares in BL&P and sold them for short term gains? How many of you jump on the Privatisation Bandwagon when GOB petroleum corporations are/ were up for grabs.”

    Maybe the Bajan minority shareholders were just adhering to the instruction of: “Follow, the leader, elected leader”!

    Because of the government’s hunger for forex it was forced to sell its remaining holdings via the NIS for a mess of foreign currency pottage thereby forcing the hands of the remaining ‘patriotic’ small holders to sell for what was offered to them or have their small holdings compulsory acquired according to Company law.

    In other words, BC, there were faced with a Hobson’s choice: Sell your shares or have them compulsory acquired or be faced with heavy taxes on dividends declared by Emera Canada.

    Capiche, BC?

  20. Heard the report on VOB Caribbean newscast.The sting came at the end……Emera estimated the annualized cost to the consumer of their Hedging gambit to be $600,000.00 and hear their arrogance……the administrator of the Hedge will be Emera,Canada….just another management fee to mask their theft of Bajan money.

  21. Emera Incorporated is a publicly traded energy and services company with $10.19 billion in assets and 2014 revenues of $2.97 billion. Based in Halifax, Nova Scotia, Canada, Emera’s
    Stock price: EMA (TSE) $45.33 -0.16 (-0.35%)
    Dec 30, 1:09 PM EST – Disclaimer
    Headquarters: Nova Scotia
    Revenue: 2.97 billion USD
    Founded: 1998
    Type of business: Public
    Subsidiaries: Nova Scotia Power, TECO Energy, Emera Maine

  22. Bernard…..dont be naive, do you know what other thiefing scams Emera is getting away with outside the knowledge of FTC, particularly if they are dealing directly with those jackasses for ministers, how quickly you forget the Cahill scam, the 4 seasons scam,Maloney and Bizzy scams, Del Mastros etc. bajans really do have short, selective memories when it comes to the welfare, wellbeing and financoal futures of their own people.


    Your intestine is over 20 feet long buddy
    Nicely wrapped up in your sweet tummy
    You put a lot of junk in there
    Most times you show no care
    Then you never clean it man
    This I can never understan’
    What you think going happen one day
    It can go on like this forever, no, nay!
    Take some thing, do not ever get into a rut
    You’ve got to regularly clean out your gut
    ‘cause when you go to the toilet
    You will surely strain and sweat
    Now you know the cause, eh? you’re so constipated
    Nothing coming out no matter how long you waited
    Its supposed to come out like a big banana
    And no matter you pray to God or Allah
    You are out of luck
    You’re literally stuck
    Every time when we eat
    We use flour and meat
    Can you imagine the big problem
    When you put together both of them
    They stuck together like crazy glue
    And when digested, the smell ooh!
    Save your self from a lot of cancers
    Use stuff to clean out called enhancers
    For meat takes 3 days to digest
    With the flour you do the rest
    You won’t feel so lackadaisical anymore
    A smile on your lips as you do your chore
    Your juices flowing now you’re man of pep
    With glowing skin and a spring in your step1

  24. The full report of the FCA decision makes very interesting reading. Pray, tell me, which ministers in the present cabinet fully appreciate the issues raised therein? This underscores the point that I have been making in BU that the technocrats are really the persons running the show under the Westminster Model. The threat to the Westminster Model is where the politicians attempt to hijack the roles of the technocrats.Some BU bloggers are therefore on shimmering ground when they expect the politician to be accountable for technical failures. They are policy makers and their policies must be informed by evidence and a sense as to how and why things work or cannot work.
    So this boss mentality has to go in the new dispensation. It is time for a paradigm shift.
    Just my rambling thoughts on how we can redefine the future Barbados society and polity.

  25. By the way hedging is gambling. There must be winners and losers. Emera is attempting to profit when the hedge is in their favour. But the consumer is to lose when the hedge is not in Emera’s favour. Is there not a conflict of interest where the subsidiary company also administers the hedge?

  26. @ Bernard
    Your thoughts are a bit too ‘rambling’ for your own good… you speak of what ‘SHOULD BE’ ….and not ‘what IS’….

    The REALITY of Barbados is that the ministers take on the roles of the technocrats while ensuring that lackies and yes-people are appointed to dot the ‘i’s and cross the ‘t’s for them.

    If you listened to the shiitehound Estwick talking about agriculture, water or any ministry you would hear that HE attends technical meetings overseas, holds discussions on technical matters, and plans strategy.
    …why do you think so much wild bush has been planted in place of sugar cane? …and that the sugar industry is finally dead?

    You listen to another joker Michael Lashley on transport? HE decides every shiite… and always with some idiot plan to ‘study that approach’ …and the thing falling apart…

    The damn politicians ARE responsible for basic reasons,
    1 – They are the ones making the decisions
    2 – They are the ones who appoint the; piss poor lackies as technocrats
    3 – To-be-side…., they are a pack of incompetent, untrustworthy, liars –

    • Where is former COO Stephen Worme?

      Is he happy to ride of into the sunset in retirement?

      This is a man with a thorough knowledge of BL&P and the relevant issues.

      Why is he not speaking out?

      Did Emera coax him to sign a Non Disclosure Agreement?

  27. I hope Barbadians are ready for the backlash from a company who does not give a wukup and a squeeze pooch about Barbadians or their related controls. Emera will hit where it will hurt the most. The cats are about to get skinned.

  28. Hedging is gambling but it’s not bajans should be paying for Emera’s gambling habits, it should be their Canadian shareholders who benefit from the profits and dividends when Emera wins and should be the ones sharing the loses when Emera loses, it has absolutely nothing to do with bajan consumers as FTC correctly called it.

    If the island had intelligent leaders they would view that nasty move by Emera as a criminal offense against Barbados and it’s people…extortion….and the company should be severely punished, if Barbados had intelligent leaders.

  29. I will rephrase fir dummies like Alvin.

    Emera wins……the Canadian shareholders benefit and profit.

    Emera loses….bajans pay for that loss.

    Something is wrong with that picture, the racist piece of crap Canadians managing Emera believe that black people should pay for any losses they and their shareholders suffer or pay any risks they take and that’s the bottom line. .and Emera and their managers deserve to be exposed for their evil, criminal ways.

  30. ammmmmmm de ole man ent too bright nor educated and dese tings bout hedges does mek a feller look for a cutlass to cut down bush or gramoxone to will it permanently.

    You are all bring people who understand this “options and futures” market but I do not.

    This is not a matter of financials as much as it is a matter of respect of white people for black peope ergo the kick the white man gave the nigger on the Emera premises.

    Among themselves the way this rolls is as follows

    “Fellows, these niggers, sorry Bajans are black ingrunt fools led but a pack of wannabe female rabbits who will seel out dem mudda badword IF THE PRICE IS RIGHT!” (did anyone say downlowe and $5M or Kelly & Grotto?)

    “Since we have no respect for these niggers any scam that further discommodes them is welcome”

    “We are not to kick them in public, or in private, (like how that fellow at the Hardware store “kicked” the nigger and pulled his head down to the display shelf and the rest uh we niggers still went back dey the following day).

    “No, if we kick them, we must cut their throat or do like “The KKK passed out flyers last night at Piedmont Park & the next day we wake up to a black man hung at Piedmont Park #PiedmontParkHanging”, in short no witnesses”

    “Remember my colleagues, we have options”

    “Kill them in the night, where there are no witnesses, or kill them in the day through elevating their “champions” to Knighthoods like Sir Hilary and emasculating them for pottage and a building shaped like a stool (emphasis on stool) or kill them through the constant evisceration of our policies and practices which rape them of any money or economic resources”

    “Fellers, see how we are winning? Look how we have Sambo read Fumbles de sleeeping giant and his cohort shouting tumultously bout how “slavery dun, and we is independent!”

    “Looka how we got de ingrunt nigger eating out uh we hands, pairing Prince Harry wid Rihanna pun a HIV drive, and feeling so smart wid demselves!”

    Looka how we buying up all de beachfront proprties and encircling dem like how de injuns encircled and slaughtered Custer? Ooops dat was not a good allegory was it? dem is injuns killin we white peeple and scalping we, sorry Knight Commander, I got to find examples of how we kilt dem in droves and not a feller ent know it was we”

    “Anyways, upwards and onwards EMERA”

    • @PUDRYR

      The issue is not ‘hedging’ which is a legit tactic to manage risk, it is the cheek by BL&P to want to pass the cost/gains to the public via the FCA.

  31. Piece. .it’s frightening how stupid black people can be, gotta be thankful that there are some still willing to do their jobs and are capable of recognizing how racist and conniving these local and foreign business people can be in their quest to continually steal from black people.

    Let’s hope the government ministers recognize that going forward vigilance must be exercised to prevent such occurrences, if they are npt too busy accepting bribes and campaign financing from these racist thieves.

  32. Piece Sweetie

    If you back punching like that then the SSS will return to commenting on here. Very nice..hmmmm smack

  33. SSS….Emera has to answer to its board of directors when bajans start usig less and less electricity, the whole management team will be replaced……..if Barbados had intelligent, proactive leaders, in another 5 years there would be less use for Emera once the island is powered by solar and not by thieves.

    Emera has a lot to lose.

    Never give them the power of thinking they are invincible, they will use that power to rob you and to add insult to injury, practice racism against you because you have weak, lazy, greedy leaders.

  34. @ David
    Emera’s argument is that Bajans pay the fuel cost anyway- through the fuel adjustment charge. The rate structure is such that it makes no difference to them. This is why they can afford to continue to use those old inefficient machines at Spring Gardens ..rather than invest (their profits) in more fuel efficient systems and even in more solar and wind.

    So Bajans pay for the hedging anyway…. by high fuel charges when fuel goes up, and lower costs when it falls, so the only real benefit to Emera is another excuse for more management charges and the possibility of using the system to benefit some of their other operations in other jurisdictions. …so Bushie don’t quite follow the FTC’s logic.

    The problem with Emera is that they should not have been allowed to own BL&P outright in the first place. It was the local managers who literally forced them to buy out all the local shares (so that they could make a killing as they retired)…. by offering them a deal too sweet to be refused.

    The fuel hedging thing is just a gimmick, to give the impression that Emera is ‘doing something’ ….when in fact, (as Colonel Buggy has been saying for some time now,) the old generating plant is just waiting for an excuse to fall apart….

    What we need to review is the amount of PROFITS that have been extracted from Barbados by Emera since they took over the place …. and the comparative quality of service since then…. perhaps the FTC could give us those figures…. (easily available from Emera’s reports where they brag to their shareholders….)

    Nowhere else on earth can there be a set of people as stupid as Bajans……
    it just ain’t possible…..

  35. @Bush Tea
    I notice you grasp the message. One has to move from “what is” to ” should be”. If one does not make the effort and put in the work we will always be at” what is”. I am not interested in remaining at “what is”. Nor should you.

  36. David;
    I am pleased with the FTC decision. Hedging is gambling. Let Emera gamble with their own money, the people should not be subjected to “hedging with their own money”, and then have to pay with more of their money for any losses as a result of a bad gamble.
    Congrats to the FTC.

    • @Hants

      The explanation given is that the CEO has the weight of the performance of the company therefore his tenure maybe short if performance tanks. The same logic is used for why local MPs become eligible for pension after eight years (two terms).

  37. @ David,

    Barbados ( low tax) is contributing to the wealth of the highest paid CEO in Canada. He made $182 million in 2015.

    “He’s a master at spotting fat in his takeover targets and clinically taking it out once he’s won control. Stories abound of office employees being laid off without ever talking to the new ownership.”

  38. It’s very clear Emera’s management in Canada sees Barbados and the Caribbean islands as ATMs to keep withdrawing millions and supporting themselves and their shareholders in Canada for another 100 years, a bunch of goddamn thieves…all they gotta do is use their time to dream up the scams and give them pretty labels to pull the wool over the eyes of any fool in parliament. hedging, they are all a bunch of thiefing gamblers.

  39. @ Hants
    Have you noted which of the Caribbean holdings are the only ones to be ‘wholly owned’?
    … the Bajan brass bowls.

    At least the other countries have a voice in their boardroom to try to protect local interests. The Bajan entities are represented in the boardroom by 100% Canadian interests…we must depend on Emera goodwill….like quintessential rabbits… wonders whose bright idea this was?

    Any fight now by the FTC will amount to a ‘David versus Goliath’ scenario…. where we are the brass bowl Davids…. and where our ‘gutterperks’ have been huffed.

    We continue to live the maxim which says that a fool and his money are easily parted.

  40. @ Bushie,

    I am hoping that Government will allow all renewable energy equipment including SOLAR to be imported duty free and tax free.

  41. Oops! I just gave MIA an idea that she can promise Bajans during the coming campaign.

    She is free to say she intended to do that long before I wrote it. lol

  42. @ Hants
    I am hoping that Government will allow all renewable energy equipment including SOLAR to be imported duty free and tax free.
    This is already the case.

    The problem has been that BL&P have been frustrating the process…by first of all claiming that only a limited amount of renewables can be accommodated on the island….
    …and when that lie was uncovered (by no less a person than Bizzy…) they jumped and built a big-ass facility down by Kellman …to hog the market.
    …meanwhile others who want to invest need BL&P’s … permission and have to wait on THEIR facilitation.

    …you could want a bigger joke?

    Of course that only applies to those foolish enough to want to connect to the Grid.

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