Intervenors have accused Barbados Light and Power Company Limited (BLPC) of stonewalling requests for key financial data, warning that continued non-disclosure could result in court proceedings as part of efforts to challenge the company’s latest bid for a rate increase.
The team of intervenors, led by former utility manager Ricky Went, revealed that their complaint has been submitted to the Fair Trading Commission (FTC) — the country’s sole utility regulator and state agency responsible for determining electricity rates.
“Available information indicates that BLPC is making a ‘killing,’ so it is not surprising that the company is reluctant to share the information. If BLPC does not provide the requested financial reports, we may have to draw the matter to the attention of the Court. We may also have to go public as the increase will be burdensome, especially on the less fortunate and small businesses,” Went told Barbados TODAY.
Went contends that to fully assess the financial impact of all rate increases awarded to BLPC, intervenors require:
• The 2022 to 2024 audited non-consolidated accounts and the six-month results for 2025, even if unaudited
• The 2022 to 2024 audited accounts for the Self Insurance Fund (SIF) and its six-month results for 2025, even if unaudited
• All information in an established rate-case format, similar to reports provided for 2009-2021
“It would be a travesty,” Went insisted, “if a final ruling is given without knowledge of BLPC’s actual performance versus the projections in its dismal forecast up to 2025 which it presented to the FTC in 2021. Intervenors fear the ratepayers would be unduly burdened, without close review and analysis.
“The less fortunate will be severely impacted, especially when VAT is restored to 17.5 per cent from the generous 7.5 per cent that currently applies to the first 250 kilowatt-hours of usage each month.
“Accordingly, intervenors hereby make this special plea for the audited financial reports specified, [to] be provided immediately in the interest of justice and equity for consumers and all stakeholders,” he added.
Following the FTC’s decision and order on BLPC’s rate review application on February 15, 2023, intervenors say they have sought a better understanding of the company’s financial performance.
Went and his team said that non-consolidated financial statements have been requested at least five times between January 5, 2023, and July 4, this year, without response.
It is understood that the intervenor team, including attorney-at-law Tricia Watson and chartered accountant David Simpson, has also made multiple requests for the financials.
According to Went, in its rate review application of October 4, 2021, BLPC sought a revenue requirement of $46.5 million.
Regarding the company’s request, the FTC stated in its interim decision of September 16, 2022, that ‘a rudimentary average of the proposed increases is approximately 74 per cent.’
On the same date, Went recalled, BLPC was granted a 37 per cent interim increase, which took effect on November 1, 2022, “which is still in place, today”.
The utility rate expert recalled that, in its decision and order of February 15, 2023, the FTC highlighted that ‘despite the adjustments made to the cost-based rates by BLPC, significant increases in bills and rates were proposed’. For example, the proposed customer charge for large power customers was set at $1 287 — an increase of 429 per cent over the current charge of $300.
Went also noted that, on January 29, 2024, BLPC filed an application for the recovery of the rental and operating costs of 11MW of temporary Aggreko generator units.
He said: “BLPC advised that ‘electricity demand in the latter half of 2023 exceeded that forecasted due to the unanticipated record high temperatures and the completion of new commercial projects finally coming on stream. This trend of increased demand is expected to continue in 2024 as the economy is expected to benefit from commercial investments and other activities such as T20 Cricket World Cup’.
“In essence, BLPC filed for a further rate increase to rent 11-megawatt Aggreko generating units for two years. BLPC’s request was granted for one year, even though our team argued that the Aggreko units should have been bought and placed in the rate base. Under our team’s proposal, there would have been no immediate need for any rate adjustment, temporary or otherwise.”
“Nonetheless, given the 37 per cent interim rate hike, the rate addition for rental of Aggreko units, and the rate increase for 15MW of BESS [Battery Energy Storage Systems], our team firmly believes that BLPC is doing extremely well,” Went contended. “Further, BLPC is projecting much higher growth than required for the company to rent additional generating capacity even though 15MW of BESS was approved.”
Barbados Light and Power Company is expected to issue a response.
emmanueljoseph@barbadostoday.bb
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