Submitted by Lieutenant Colonel Trevor Browne, The Cooperative Coalition
Government Declares a State of Emergency in Energy
The new amendment to the Utilities Act Cap 282 reads:
Short title
- This Act may be cited as the Utilities (Amendment) Act, 2023. Amendment of section 37 of Cap. 282
- Section 37 of the Utilities Act, Cap. 282 is amended by inserting immediately after subsection (4) the following:
“(5) The Minister may, on the recommendation of the Commission or, on his own initiative, exempt the supply of electricity from a renewable energy resource by a renewable energy producer from the application of all or any of the provisions of this Act, where the Minister is satisfied in all circumstances that the exemption is required in the public interest.”.
When conditions in a country deteriorate to the point where the normal Laws which protect the welfare and interest of all citizens are to be suspended, based on the judgement of an official, then government is required to declare a State of Emergency – much as was the case during
Covid-19.
The subject Utilities Act is among the bedrock of law that governs the current electricity market in Barbados. In particular, this Act lays out very specific provisions for the consideration of consumer rights; for fair and transparent operations by the Utility; by other stakeholders – such as independent Power Producers (IPPs); and even by the Regulator, the FTC.
It is under the existing provisions of the Utilities Act, that intervenors such as the Cooperative Coalition, representing hundreds of thousands of citizens, have been able to hold the BLPC and the FTC to account, and in the process, to protect the overall public interest.
This amendment seeks to remove that protection for consumers, citizens and intervenors.
We note that government also recently passed a similarly controversial Amendment to the Electric Light & Power Act – which effectively restricts the role of intervenors in the sensitive issue of potential billion-dollar-valued licenses to utility franchises.
Any requirements for exemptions of any, or all of these important utility Laws, by any single authority, is a clear declaration of a state of emergency in Barbados’ highly vaunted Energy Transition process. In which case, Government is surely required to detail the threats that have been identified, to justify the need for a State of Emergency being declared at this time, and to explain how the rights of citizens and residents and intervenors, will be protected during the process.
The Coalition has for a long time pointed out the fact that the current Regulatory process is completely outdated and is obviously not fit for purpose. However the solution needed is one which requires all key stakeholders – especially the broad customer community, working together under a common umbrella, to solve the many problems, and to successfully implement the Barbados National Energy Policy.
A dictatorial, minister-imposed regime (even where dressed up as a State of Emergency) creates an even worse situation than is the current mess. If the impetus for this proposed amendment is the present disjointed, unplanned, rush by diverse parties, to impose their own self-interest on the backs of local rate-payers – while resulting in inflated, long-term rates, as they reap guaranteed profits, then it is seriously flawed.
The Cooperative Coalition rejects this proposed amendment, and calls for a multi-stakeholder, collaborative approach to addressing whatever perils have been identified by authorities as warranting the effective imposition of a ‘Covid-19 styled’ State-of-Emergency on the already stalled energy transformation initiative.
The blogmaster invites you to join the discussion.