RIC begins consultations on TTEC’s proposed hike

The RIC Act, number 26 of 1998, established the RIC as a statutory body and Section 6 of the RIC Act empowers the RIC, among other things, to establish the principles and methodologies by which service providers determine rates for service.

TTEC sent a proposal to RIC outlining the effect of the rising cost of its operation, and the need for an increased cost of service to the public, having not done so since 1992.

Acting general manager of TTEC, Indarjit Singh, stated that TTEC had no control over the rising cost of fuel which has escalated over four percent annually.

However, while TTEC is recovering the cost for fuel as indicated on bills, it is not recovering all other costs such as manpower and the increase in materials, 90 percent of which come from abroad.

Corporate communication manager at TTEC, Dennis Mc Comie, agreed with Singh, adding that after 13 years of uneconomic rates, to apply to the RIC for a review of its rates in order to decide how to regulate them and bring them up to par.

Asked what increased figure they were looking at, Singh said, "The way the game is played we have put forward to the RIC our position in terms of our expenditure, and they are going to look at a number of things. So really we can’t comment on the level of increase."

During her review of the status of TTEC, Shinelle Padmore, Tariff Analyst at RIC, said the purpose of her input was to look over the operational and financial state of TTEC, as well as to benchmark TTEC’s performance against other utilities for the purpose of comparison.

RIC’s Standard’s Engineer, Gordon Wyke, who spoke on performance indicators for TTEC, stated that electrification in TT is over 97 percent. The staffing levels for 2002 were approximately 2,180 persons and the customer base was approximately 333,720 accounts.

Concerning setting of price controls, executive director at RIC, Harjinder Atwal, said the RIC would conduct the rate review in four phases.

Those include: developing the rate review framework and establishing service standards, identifying and resolving detailed issues, undertaking the rate determination and finally implementing the ajusted rates.

He also spoke of incentive regulation which he said helps avoid the pitfalls commonly associated with rate of return regulation and allows service providers to concentrate on minimising costs and sharing of cost savings with customers.

More consultations are carded to take place throughout the country in the next few months.