RIC blanks Govt programmes

During a media briefing at the RIC office yesterday, Chairman of the RIC, Dennis Pantin said TTEC had proposed an investment programme of $3.29 billion over five years (2006-2011) but the RIC had allowed $800 million.

Pantin indicated that the decision prevented $1.9 billion from being “pass through” to the consumer.

“This is based on the investor pay market principle that is—they should be the responsibility of the Government. This in particular relates to the aluminium smelters and the University of TT.”

Pantin said the RIC determined “that these projects may be legitimate but the Government will have to find that money off TTEC’s Budget.”

Pantin disclosed that the RIC also disallowed other projects totalling approximately $519 million for various reasons and “primarily that we did not find sufficient justification in TTEC’s proposal.”

He said the RIC will continuously monitor TTEC’s capital investment over the time period.

The RIC final determination report has noted that almost 70 percent of TTEC’s cost are not directly under its control.

Pantin said over the past 16 years TTEC had no rate increases but “it’s costs have gone up because itis subject to contracts which require it to pay new additional sums in terms of fuel charges and operating and generating costs along the way.”

In its application for a rate increase specified that its required revenue was $11.9 billion however, the RIC approved $11 billion.

TTEC buys electricity generated from PowerGen and Trinity Power.

It purchases the fuel and provides it free of charge to the power generators and TTEC buys the electricity generated. Pantin said this meant that TTEC had a fuel cost charge and conversion charge. TTEC had asked the RIC to approve its request of $3.8 billion for fuel cost, $3.2 billion was approved. The RIC approved $5.2 billion for conversion cost (TTEC requested $5.4 billion) and $3.2 million for fuel cost (TTEC requested $3.7 million).

Pantin said the RIC has recommended for the generation cost that the purchase power agreement be renegotiated with the RIC’s involvement.

The RIC also saw the need for a long-term natural gas contract at a special price.

TTEC has indicated to the RIC that it has a monthly growing debt to the National Gas Company of $43.5 million, and since September last year its liability was $389 million.

Information provided by the RIC stated that it holds the view that the Government should assume the responsibility for the accumulated debt to the NGC since September 2005.

It said the Government has agreed to consider providing funds to assist TTEC to service its debt.

The RIC has recommended that TTEC renegotiate its purchase power agreements.