TTEC subsidies no help

Pantin made this observation while speaking at the opening ceremony of CARILEC Regional Engineers’ Conference at the Trinidad Hilton. Theme of the conference was: “Deregulation and the Future of the Electric Utility Industry in the Caribbean.”

Pantin made this comment while delivering the keynote address but was quick to add that his observation on Government’s subsidies plan was purely his personal opinion.

Pantin stated the consumer would inevitably pay for electricity if government were to subsidise electricity costs as finances would be obtained from the fiscal revenue.

This is provided by citizens for areas such as health care, education, security and product investment. These areas would suffer as opportunity costs (value of all other goods or services that must be given up in order to produce revenue for new ventures) for electricity would be higher.

He added that consumers may be discouraged to conserve energy once they pay lower electricity fees therefore increasing the opportunity cost for subsidised electricity.

Monies may not get to TTEC in a timely manner which would result in poorer, inefficient electrical service as subsidies are subject to “fiscal and political vagaries, including timeliness.”

Pantin said despite these views, exceptions for lower income groups would be made once rates are increased in a five-year transition period. RIC’s final determination of the electricity rate increase provided for a TT$224 million non-fiscal subsidy and a rate of $4.34 every two months for every 100Kwh for the lowest residential consumers.

The opening ceremony was attended by the Minister of Public Utilities and the Environment Pennelope Beckles.

After a year of substantial public consultation and deliberation, the RIC recommended that TTEC raise the cost of electricity, the first increase in 16 years.