T&TEC's sting in the tail

THE EDITOR: A CNC3/Sunday Guardian report on January 16, 2021, stated that T&TEC was owed $1.4 billion by delinquent customers.

The Government owed $1.2 billion of that amount. Commercial and residential customers owed $264.4 million.

How much of this outstanding balance has T&TEC collected in the past two years?

The Regulated Industries Commission (RIC) has approved T&TEC's request for increased rates for residential and commercial customers. Customers will now be billed monthly.

The RIC release only mentioned increases per kilowatt hour (kWh) usage. However, T&TEC also requested additional increases as follows:

1. Service deposit: This is a new charge that will be added onto the bill. The deposit is "linked to the average value of customer bills over two billing periods." This may add an additional $100 or more to the proposed monthly bill.

2. Fuel and exchange rate adjustment: A fuel rate adjustment "allows for the partial recovery of the cost of fuel used in the production and delivery of electricity that is over and above a base value approved by the Regulated Industries Commission."

An exchange rate adjustment "adjusts for changes in the cost of foreign inputs, resulting from movements in the value of the Trinidad and Tobago dollar relative to the Unites States dollar, subsequent to Order No 80 of 1992 of the Public Utilities Commission. It is applied in accordance with a formula approved by the Regulated Industries Commission" (T&TEC Business Plan 2004-2008: pg. app 23-30).

This has a reintroduced feel. It used to be a charge on the bill up to April 30, 2008. In 2004, these adjustments added an average of about $30 to the bill.

3. Customer charge: There is a current residential customer charge of $6 for two months that is added to each bill. However, it seems as though T&TEC wants to substantially increase this charge. "Customer charge is being proposed to be introduced to industrial customers for the first time, and adjustments made to other categories."

Did the RIC also approve additional charges as per 1-3 above? This needs to be clarified.

When all of the above are tallied and value added tax (VAT) at 12.5 per cent is added to the monthly bill, consumers will be faced with hefty increases.

There is no need to add that this will be another contributor to inflationary pressures. The cost of living will increase.

Will the foreign companies operating with "peppercorn" electricity rates, on selected industrial estates, also be subject to these increases?

On February 11, 2022, the Minister of Public Utilities responded to the second report of the joint select committee on land and physical infrastructure on an inquiry into the management of T&TEC and related recommendations. The recommendations and responses are most informative.

The link is given for perusal: https://www.ttparliament.org/wp-content/uploads/2022/01/p12-s2-J-20220211-LPI-R2-MR-MPU.pdf

LINUS F DIDIER

Mt Hope