fp Turks and Caicos

On the same day that the acting governor received a review of Turks and Caicos Utilities’ rate increase request, Fortis TCI submitted a “rate variation application”.

• No change in residential rates
• Change in the rate structure to a declining block structure
• Overall revenues from basic rates, from government and commercial customers will increase by 5.5 percent
• Facilitate the takeover of all street lights by Fortis

“The primary objectives of the variation application are (1) to end government’s requirement to subsidise service on South Caicos; (2) to levelise rates across the company’s service territory of Providenciales, North Caicos, Middle Caicos, and South Caicos; (3) to re-balance rates to ensure greater equity and cost-of-service fairness, and (4) to facilitate the continued development of the electricity infrastructure, which is one of the best in the Caribbean, as was demonstrated by the Country’s recent experience with Hurricane Irene,” Fortis TCI President and CEO Eddinton Powell said in a statement Aug. 30.

Government-funded consultant Oxera is currently reviewing regulations for both Fortis and TCU.

TCU had asked to increase rates by 5 cents per kilowatt hour on Grand Turk and Salt Cay where it provides power, but the governor postponed the request pending the Oxera review.

That prompted TCU to request an independent review of its request as allowed by law.

A public meeting was held Aug. 26 (delayed from Aug. 23) in Grand Turk at which residents voiced their concerns to Dr. Virendra Ajodhia, an expert who was appointed to conduct the inquiry. The meeting scheduled in Salt Cay for Aug 24 was cancelled and timing did not allow for it to be rescheduled, but several submissions from Salt Cay residents were received via e-mail.

The governor’s office has confirmed that it received the report Aug. 29 and will decide whether to grant the increase.

The report is confidential, but the governor can decide to release it in full or redacted form because some information may be commercially sensitive.