Roberts predicts price rise as T&TEC faces $1.1b hole

T&TEC general manager Kelvin Ramsook said on Thursday that T&TEC has a $1.1 billion shortfall which has left it in debt to the National Gas Company (NGC).

He was speaking at a virtual meeting of Parliament's Joint Select Committee (JSC) on Land and Physical Infrastructure.

This news prompted committee member Senator Anil Roberts to predict a steep rise in electricity rates for consumers.

Ramsook said, "T&TECat this time is suffering a loss of $1.1 billion that we are unable to pay for gas to the National Gas Company, even at a subsidised rate (which) is one half what the value of the gas is on the open market."

He said the subsidised price T&TEC pays to NGC is US$1.5882 per MMBTU.

Roberts remarked, "The population can now look forward to vast increases in their electricity (bills). This is going to be pain for the citizens."

Roberts predicted consumers might see "a doubling or tripling" of their electricity bill.

He denied he has been badgering the officials facing the JSC, saying the general public would like the information he had sought.

Committee chairman Deoroop Teemal said the witnesses were public servants who should be given room to answer, as they were trying their best and were genuine in their responses, and in reply to Roberts said he was not muting nor controlling anyone at the sitting.

Committee member Saddam Hosein noted WASA's now-stalled disconnection drive and asked if T&TEC would also initiate disconnections.

Ramsook replied T&TEC encourages all customers to pay their bills. "Given the nature of the business, it is absolutely necessary that we collect our money."

Hosein asked about the ministry's utility assistance programme, saying he knew constituents who could not pay their T&TEC bill.

Ministry of Public Utilities permanent secretary Nicolette Duke said this programme was based on Cabinet policy. Deputy permanent secretary Beverly Khan said anyone earning less than $5,000 a month can apply.

"In respect of the electricity bill, it's a maximum of $1,200 per annum that can be applied. In respect of WASA, it is $200."

Duke said the ministry also gives a 25 per cent rebate/discount on any T&TEC bill under $300. "Almost 50 per cent of residential customers are benefiting from that facility."

Hosein said he did not wish T&TEC consumers to face disconnection like a number of WASA customers recently.

Ramsook said T&TEC has 210,000 customers whose bill is $300 or less, out of its 445,000-strong customer base, and they get a 25 per cent rebate.

He said T&TEC had bought 1.6 million LED bulbs, of which 895,000 had been distributed. He estimated someone with a $300 bill could get an extra savings of $15 overall by installing four LED bulbs.

This also benefits T&TEC through less gas usage being required, he said.

He noted "a significant reduction" in industrial electricity consumption in the pandemic, but an increase in domestic usage, as people were at home more.

In the past month he had signed 30 applications for a reduction in reserve capacity, reducing demand on T&TEC, for businesses migrating from an industrial to a commercial designation.

"You are seeing a number of businesses not operating."

Roberts asked if Cabinet had given T&TEC any directive not to disconnect customers during the pandemic. Ramsook said the ministry had given T&TEC guidelines, while he encouraged people to pay their bills.

"We don't disconnect for a first bill, so after four months, the second bill, when we send to customers, we do encourage them (to pay.)"

He said there were no complaints of disconnection, but added that to run T&TEC it was essential people pay their bills.