An increase in electricity rates is to take effect from September 1, the Trinidad and Tobago Electricity Commission (T&TEC) has announced. In most cases, electricity rates for residential, commercial and industrial customers will be raised by 1 cent per unit (kWh).
Street lighting customers will also experience a two per cent increase. The increase comes after the Regulated Industries Commission (RIC) reviewed T&TEC's performance and approved a tariff increase of one cent kWh with no other changes. Mustapha Abdul-Hamid, Public Utilities Minister said it could be disturbing for consumers to be experiencing such a rate increase. He said the RIC sets rates for a five-year period, which are incremental increases imposed annually. "That's why you're seeing each year incremental increases. In fact, last year, the rate actually went down," he said. He said the Ministry of Public Utilities has been in discussions with the RIC about changing that model for increases.
"So that rate increase can take place perhaps over a two-year period or five-year period, but they are expected to be minimal increases with minimal impact. In discussions with them, we'll see what they consider," he said. Abdul-Hamid said that some other State agencies are "guilty" of being "delinquent" in paying their electricity bills. "We'll have to work with these agencies to ensure that bills are paid. There is no provision for the Government to provide T&TEC with any subvention. T&TEC has to make its way," he said. Abdul-Hamid made these statements at a post-Cabinet press briefing, which was held yesterday at the Diplomatic Centre, St Ann's. A release from the RIC yesterday stated that within its 2006 to 2011 review period for residential customers consuming between 0-400 kWh, the tariff was not adjusted from 2006 to 2007, and actually decreased in 2008.
T&TEC stated in its release that under the three-tiered rate system, residential customers will now pay 26 cents for the first 400 kWh consumed–an increase of one cent per kWh. For electricity consumed above 400 kWh, and up to 1,000 kWh, the new rate is 32 cents per unit. All electricity consumed above 1,000 kWh will be charged at 37 cents per unit, up one cent from 36 cents. Commercial customers will be required to pay 41.50 cents per kWh, an increase of 1.90 per unit. The RICstated that for 94,243 residential customers consuming 400 kWh or less, this one cent per kWh represents a monthly increase in their electricity bills ranging from $0.50 to $2. For commercial customers consuming between 2000 and 2500 kWh, the monthly increases will be $19.00 and $23.75, respectively.
The RIC further stated that outlined in its Final Determination (Rates and Miscellaneous Charges for the regulation of prices for June 1, 2006, to May 31, 2011, issued on June1, 2006, T&TEC is required to make a case for adjusting its tariffs every year by outlining its objectives and preparing a rationale for the tariffs to be implemented. The RIC said it measures T&TEC's performance against clearly defined targets and specific directives to determine whether to approve or reject T&TEC's proposed price adjustment. The RIC said T&TEC submits at least two months prior to the beginning of each yar of the control period its proposed tariffs to apply for the start of each year.