Electricity rates to go up

AFTER months of consultation, the Regulated Industries Commission (RIC) yesterday announced price increases for the Trinidad and Tobago Electricity Commission (TTEC) which will see residential customers having to deal with billing increases of between 16 and 39 percent, bi-monthly depending on their kilo-watt (kW) usage.

The new rates take effect from June 1, but they have to be gazetted. TTEC applied for a rate increase in November 8, 2004. The RIC has also made recommendations for low income groups to “cushion the impact” on low income households which use between 100-400kWh.

Speaking at RIC headquarters at Furness Building in Port-of-Spain, Commission chairman Dennis Pantin said: “since the system of independent regulation was not in place, we now have to take up the burden of responding to a 16-year hiatus in rate increases.”

Figures provided by the RIC yesterday showed residential customers using 100kWh whose monthly bill is $26.35, will now pay $30.69 or 16.5 percent higher. Those using 250KWh will move from $59.88 to $69.83 or 16.6 percent higher. These customers comprise 16 percent of TTEC’s total customers.

Pantin said: “consistent with the entire approach as you move up with the level of consumption the rate of percentage increase grows.”

The bi-monthly price increases for customers using 600kWh will increase from $138.10 to $176 or a 27 percent increase while 800kWh customers charges will move from $182.80 to $238. Customers using 1000-1600kWh will be paying between $72 and $142 more.

To cushion the impact of new rates, the RIC has factored in discounts for electricity consumption. Pantin said this was based on the premise that customers with lower incomes were likely to use less electricity.

Customers using between 0-400kWh will receive a 45 percent discount bi-monthly while those using 401-more than 1000kWh will receive a subsidy of 29.7 percent and customers using more than 1000kWh will get a 19.1 percent discount.

Pantin said low income groups in society have been targeted for special treatment. The RIC has proposed that $5 million be allocated for a Low Income Assistance Programme to give customers using less than 100kWh a seven percent subsidy on their bills and those using between 101-400kWh, a five percent subsidy. Appliance repair assistance and arrears forgiveness have also been recommended. They have to register with TTEC to benefit. Value added tax has not been removed from billing charges and Pantin said the RIC had no control over VAT.

The RIC has proposed a fuel cost subsidy (based on royalty gas provided by the Government) for residential customers of $167 million.