On Monday October 4, 2021, The Barbados Light & Power Company (Light & Power) filed an Application with the Fair Trading Commission (FTC) for a Review of Electricity Rates.

The Application is only the second one filed by the Company in nearly forty years requesting an adjustment to its electricity base rates. The last increase in base rates occurred in 2010, over eleven years ago. Light & Power has been able to defer a request for general rate review through careful cost management and process innovations. However, the significant increase in costs and necessary investments, like the new 33MW Clean Energy Bridge plant at Trents, St. Lucy, compels us to seek an adjustment in electricity prices. These expenditures are needed to maintain a safe, reliable and resilient electricity service that meets customers’ needs for continued high quality service.

While the cost of living has increased almost 40% since we last set rates, BLPC has invested in efficiencies and managed costs such that we are able to make application for an 11.9% increase, substantially lower than the increase experienced by our customers for other goods and services in the same period.

There is no ideal time for a rate adjustment and Light & Power acknowledges that with the impacts of the COVID-19 pandemic, customers are experiencing economic challenges at this time.

Light & Power has therefore designed rates to contain the impact to customers’ bills. For example, we have proposed that increases should be no more than $6 for those customers using less than 150 kWh in a month. These customers account for 35% of the Domestic Service tariff group, assumed to consist mostly of low-income customers. The typical bill increase resulting from the proposed rates is estimated to range from 5% to 20% depending on the tariff on which customers receive their service.

An estimated 10% reduction in fuel costs anticipated from the commissioning of the new 33MW Clean Energy Bridge by the end of 2021, is expected to substantially mitigate the impact of the proposed increase in rates even further.

Light & Power welcomes the engagement of its customers and other stakeholders on the proposals contained in its Application.