Light & Power’s Rate Review
The Barbados Light & Power Company is exploring the option of filing for a rate review because the existing way in which investments are added to the rate base is currently not as agile as it could be given the massive thrust towards 100% renewable energy by 2030.
Furthermore, the Company has undertaken a number of significant investments, some planned but fast tracked like the 33MW medium-speed Clean Energy Bridge being constructed at Trents, others unplanned like the rental and installation of Aggreko units located at the Garrison and the purchase and installation of the new small diesel station located at Spring Garden.
These investments to ensure that Barbados continues to have a reliable electricity supply also preceded the occurrence of the COVID-19 pandemic. Light & Power therefore needs to relook its rates to be able to continue covering operating expenses and providing its shareholder with a fair and reasonable rate of return.