BLPC Response to Positive FTC Ruling for Application to Extend and Add Temporary Generation

The Barbados Light & Power Company Limited (BLPC) understands the concern many customers are feeling following recent reports about electricity costs and temporary generation.

We recognise that households and businesses are already managing rising living expenses, and we want to provide clear information about what the decision of the Fair Trading Commission (FTC) means for customers.

The temporary generation referenced in recent coverage is not new to the system. Approximately 11 MW of generation has been in place since 2024 to support a stable electricity supply. The recent approval allows these same units to continue operating through 2027 with no additional costs to consumers. This means there is no new or sudden cost being introduced for these units.

The decision also includes an additional 6 MW of temporary capacity to further strengthen reliability especially as we prepare for the upcoming hurricane season. This represents a limited and targeted addition aimed at reducing the risk of outages and minimising reliance on existing generation units that utilise higher cost fuel sources.

The estimated impact of this additional capacity is modest, at approximately 0.4 cents per kWh, resulting in an approximate increase of $1.25 to the average monthly electricity bill. However, this increase is not expected to take effect before September 2026.

Barbados operates an isolated electricity grid, meaning there is no external back-up supply. As a result, adequate generation must be available locally at all times to ensure homes, businesses, hospitals and essential services continue to receive power, even during peak demand, maintenance or unexpected equipment failures.

These temporary units play a critical role in maintaining system stability while still supporting the renewable energy transition policies of the government of Barbados. Without them, the system would face increased pressure, a higher risk of service disruptions, and potentially greater costs from less efficient generation.

The deployment of temporary generation units serves as an effective interim strategy to safeguard customers as more sustainable, long-term energy solutions are implemented.

BLPC also respects the independent role of the FTC in reviewing and approving applications through a transparent process, including public hearings and detailed technical assessments.

As is customary, any impact from changes in fuel costs will continue to be managed through the approved Fuel Clause Adjustment (FCA), which helps to spread these costs over time and avoid sharp increases on customer bills. BLPC will continue to make every effort to minimise the impact of these changes on customers.

We remain committed to providing customers with a safe, reliable and efficient electricity service, and ensuring that decisions are made in the best interest of customers and the country.

The Company stressed that this is a necessary, short-term measure to protect customers and ensure continuity of service, while longer-term energy solutions, requiring regulatory alignment and extended development timelines, are advanced.