RIC: Electricity rates may fall

Speaking at a news conference at the RIC’s Furness Building offices in Port-of-Spain to discuss the RIC’s draft document for local electricity transmission and distribution, RIC chairman Dennis Pantin and deputy chairman Harjinder Atwal said the overall impact of any increased electricity rates to customers from March 1 "will be modest." There will be no impact on the economy; no reduction of competitiveness of any local industry, and additional monies will be placed in a special natural disaster preparedness fund for TT.

Pantin said the RIC is adamant that the Electricity Commission (TTEC) ensures that electricity is affordable for lower income, vulnerable and disadvantaged groups in the society.

Also, that the company should pass on the benefits of any profits it receives, to the consumers.

According to the draft document, residential customers who use between 100 and 400 kWh monthly may see their electricity rates increase between $5.32 and $15.30. Residential consumers using between 400 and 1,000 kWh per month may see their electricity rates increase between $15.30 to $44.25. Residential consumers using 1,000 to 1,600 kWh per month may see their electricity rates increase between $44.25 and $82.20.

Commercial customers using between 500 and 2,500 kWh per month may experience a monthly increase between $38.85 and $184.25. Industrial customers may also pay increased electricity rates.

However Pantin and Atwal said these rates were the maximum being proposed by the RIC and they could fall across the board once Government agrees to subsidise electricity costs in certain areas.

Atwal said the RIC was optimistic that it would receive a response from Government on this issue before the Commission completes a series of five public consultations on the proposed electricity rates and a final decision is made in March.

The RIC has proposed that Govern-ment negotiate a long-term natural gas contract with the National Gas Company at a current price of US$0.87 per MMBTU, renegotiate existing Power purchase agreements and absorb"either one or both of the major loan negotiations" as some ways to shield customers from any increase in electricity rates.