Background
The Barbados Light & Power Company (BL&P) a wholly owned subsidiary of EMERA Inc of Canada, has applied to the Barbados Fair Trading Commission (FTC) for an increase in rates amounting to an average of 11.9% increase in electricity rates for Barbadians.
In response to written and verbal requests from our members, CoopEnergy Barbados undertook a review of the application made to the FTC, and determined that the request by BL&P appears to
be unwarranted, unfair and unjustified at this time, for a number of important reasons which need to be argued to the FTC from the CONSUMERS’ perspective.
Furthermore, our review indicates that the rate setting model currently employed to determine such rates is now outdated and is seriously biased against consumers.
The Board of Directors of CoopEnergy Barbados has therefore enlisted the support of the Barbados Cooperative & Credit Union League, the Barbados Cooperative Business Association, our membership and of all concerned Citizens of Barbados, to form a coalition to represent the interest of all Barbadians in this important matter.
What is the PURPOSE of the Rate Hearing?
A rate Hearing is the formal process through which rates are set for regulated agencies which are allowed to operate without free market competition. It is therefore VERY IMPORTANT that consumers’ interests are properly represented at such hearings.
The FTC has the authority to:
• Review rates, principles and standards of service for a regulated utility.
• Principles refer to the methodology used to determine how a rate is determined for the service.
Emera Inc /BL&P would have spent millions of dollars and thousands of hours preparing their technical, legal, regulatory and PR case for the requested increase. The application filed consists of thousands of pages of technical and legal documents which will need to be reviewed and assessed by experts over the coming months of the Hearing.
Additionally, CoopEnergy intends to propose a major upgrade to the outdated methodology currently being used to the disadvantage of consumers.
What is BL&P Requesting?
BL&P has made formal application to the FTC for the following changes:
A. Approval of the BL&P increased rate base.
B. Approval of their new proposed capital structure
C. Approval of an increased rate of return on rate base
D. Approval of the revenue projected by BL&P
E. Approved tariffs and riders
F. Modification of the FCA to include only fossil fuels
G. Establish a new Renewable Purchased Power Adjustment
The Company also requested that the proposed new rates be applied even before a formal hearing is started.
BL&P has been advising customers that those at the lowest end of their customer base, can expect to pay an increase of about $8.00 per month. Obviously average users and high-end customers will be required to pay much more.
What is the Coalition Requesting?
In order to properly and effectively represent the interests of all consumers, the Coalition will mount a comprehensive and professional intervention during the rate case.
This intervention will feature:
• A comprehensive Public Education Campaign to break down the issues for the public, and to ensure that transparent and clear answers are provided to key questions raised.
• Major technical, legal and procedural challenges to many of the assertions being made by BL&P in support of their application for an increase in rates
• Proposals to the FTC for significant structural adjustments to the current MODEL being used for rate setting, to ensure that more transparency, consideration of consumer interests, and overall fairness is applied to the process.
To achieve these objectives, the Coalition is asking all concerned citizens to pledge the minimum increase being projected by BL&P, ($8 per month) for the duration of the rate hearing process (four
months) to support the Coalition’s intervention. These contributions will be used to fund technical, legal and administrative resources needed to effectively counter the Company’s considerable
resources. Full accounting will be provided for all costs incurred.
The Coalition is asking you to join this campaign, and to contribute $32 towards the cooperative effort to counter this unjustified attempt to raise rates at this time. Every Barbadian must register
their support and join this national effort to protect our rights and our future energy resources.
With CoopEnergy, YOU can actually participate in the process through our Intervenors Team.
What You Can Do Now..
1 – Register your support. Visit our website www.coopenergy.bb and join the Coalition as a supporter. REGISTER NOW – Your moral and financial support is vital.
2 – Contribute to the Coalition. Make your contribution of at least $32 towards the effort to counter the big international monopoly. CONTRIBUTE NOW – every dollar will aid the fight for justice.
3 – Stay in touch Stay in contact with CoopEnergy as events develop and you can interact with our Intervenors’ Team during the Rate Process with your ideas, concerns and suggestions.
4 – Join CoopEnergy Barbados today
If you are not yet a member, why not take the opportunity to join our energy cooperative society now? Become a part of Barbados’s energy future as an investor and as a Cooperative Owner.
JOIN CoopEnergy Barbados Now!!
Yours truly,
The Barbados Sustainable Energy Cooperative Society Ltd.
CoopEnergy Barbados
“Bringing Power To The People”