THE Regulated Industries Commission (RIC) unveiled its proposed new maximum rates for electricity, across the board, on Thursday. If implemented, this could see T&TEC’s revenues grow by as much as 50 per cent in the next year. For almost a year, increased electricity rates have been a topic of national and political discussion. Now, three years of work and months of consultations have culminated in the commission giving its final recommendations for new rates and regulations during a press conference at the Hilton Trinidad. Responding to a question, RIC executive director Dawn Callender said the commission’s maximum rates are projected to earn T&TEC up to $4.8 billion, up from the utility’s $3.2 billion average annual revenues. Depending on usage, the new rates for 2023/24 will increase between 15 and 64 per cent for residential customers. Rates will also increase between 37 and 51 per cent for small businesses (B1) and ten and 12 per cent for larger businesses (B2), paying commercial rates. There will also be an increase of between 58 and 72 per cent for class D industrial customers, and 119 and 126 per cent for class E, industrial customers. The commission has also created a C class for industrial customers – these being high-density users like server farms and data or cryptocurrency mining. These changes will also see customers being billed monthly instead of every two months. The new rates are not yet in effect or set in stone, as RIC officials clarified on Thursday. These are the maximum rates T&TEC would be allowed to charge customers, meaning the utility can choose to charge less. Callender said while the new terms and conditions take effect from November 1, T&TEC will now have to decide if it will implement the new rates, when, and what the rates will be, given the maximum ranges set by the RIC. PUBLIC TO KNOW SOON In a brief telephone interview with Newsday, T&TEC chairman Romney Thomas said the commission received the document yesterday and is currently reviewing it. “We will be in touch with the public in due course about (our) next steps,” he said. Thomas added the commission is comparing the RIC’s final determinations and what the utility requested in its business plan. “Once we do that (the review), I’ll have to talk to my line minister and have some discussions with him on it, and that will be basically before we make any final determination,” he said. Minister of Public Utilities Marvin Gonzales told Newsday on Thursday that he received the determination on Wednesday evening but was yet to review it. “Over the coming days I intend to review and submit to Cabinet for its consideration,” Gonzales said. During consultations, many people criticised the RIC’s proposed rates for residential customers, but Callender said the commission did not amend its initial proposals because while higher than current rates, they are still lower than the cost of electricity to the State. “We wanted to hold to those rates because, in fact, they are 75 per cent of what they really should be. We understood it has been a long time since we approved any (higher) rates. We understood the concerns being expressed that the country was coming off of covid and people felt vulnerable,” she said. Callender said while the RIC stuck to its guns on residential rates, changes were made based on comments from stakeholders during the 12-week consultations on non-residential rates. RIC CONSIDERED SMALL BUSINESSES Although the B1 commercial rate and industrial class D rates were still increased, she said this was by smaller margins than what was initially proposed, so as to protect against increased cost of goods and services being passed on to the general public. This group, she said, included small businesses that create employment, “and we really wanted to ensure that they remain sustainable, that they could continue their level of employment. “This particular group also said that over the five-year period, they are open to having a more escalated increase than we had suggested. “So the curve has changed a bit, but we feel we have been quite reasonable in acceding to the requests and comments that they provided us with.” Over the next five years, she said, there will be an annual adjustment exercise. “The purpose of what we are doing is to give T&TEC a certain amount of revenue so they can provide an efficient service. So each year we would look as to the amount collected to ensure they have not over-collected or under-collected, or we will adjust rates for the subsequent year going forward.” Callender said T&TEC needs to inform the RIC of the proposed new prices three months before instituting them. And the public must be given at least 21 days’ notice. On T&TEC’s $5 billion debt to the National Gas Company (NGC), Callender said this is addressed in the new terms and conditions for the upcoming period. “One of our conditions in our final determination is that they are required to maintain, to current levels, their NGC debt, so we are aware there is a backlog there. But from where we are today, November 1 (sic), they can remain current and then take steps to clear the backlog,” she said. NEW RATES Under the new maximum rates, customers will pay increasing amounts per kilowatt per hour (kWh) used, as they move through four tiers of consumption. A customer will pay $0.28 per kWh up to the 200 kWh tier. They will pay $0.40 per kWh used from the 201-700 kWh tier. The price then goes up to $0.54 per kWh for the 701-1,400 kWh tier. Customers will pay $0.68 per kWh for the tier that exceeds 1,400 kWh for the month. Instead of paying a customer charge of $6 bi-monthly, they will now pay $7.50 a month.For those interested in calculating what their new bill will be with the new rates, take an average bi-monthly bill, divide the kWh in half and apply the previously listed pricing to it.
Regulated Industries Commission proposes electricity rate hikes – PRICE JOLT – Trinidad and Tobago Newsday
