Minister: Consultations on electricity rate review by year end

PUBLIC Utilities Minister Marvin Gonzales says by the end of the year, the Regulated Industries Commission (RIC) will have public consultations on a draft determination for a review of electricity rates.

He was speaking at the TT Electricity Commission's (T&TEC) training facility in El Socorro on Thursday afternoon.

He said rate reviews for public utilities "may not be popular," but are, "very relevant to the commission."

He said a review is necessary as it will assist T&TEC with improving its finances "so it can undergo the necessary preventative and routine maintenance" of its services.

"It's not something your customers want to hear," Gonzales admitted.

Not only will this review help T&TEC improve its services, he claimed, but it will allow the commission to meet the RIC's requirements of service. He said he could say no more as it is "government's responsibility to get involved."

Noting the price of fuel has increased more than once in recent years, he said members of the public who are worried about further financial strain, do have "valid concerns."

"And it's a concern that the government is very cognizant of. Unfortunately, TT has a subsidy structure for water and electricity that is not targeted to those who definitely need protection for subsidies."

Because of this, he said, there will be a utility cash card system to allow the most vulnerable to be able to get electricity and water.

"It is better you have a subsidy structure where those customers who in fact need protection, that they benefit from subsidy arrangements." He said those who can afford to pay closer to the market rate will have to do so.

"Government has been saying all along that our gas sector and our gas flow is very mature, and the kind of gas we are getting right now is nowhere compared to what we were getting before.

"Therefore, as a country, we have to make a clear determination of whether it is better to utilise the limited gas resources that we have to sell it to a market where we can maximise returns or simply to sell it at a concessionary rate at NGC (National Gas Company) to generate cheap electricity."