New at Castalia

BL&P May seek rate adjustment

NationNews.com - Barbados
by Geralyn Edward, 12/03/07

BARBADOS LIGHT & POWER (BL&P) is preparing for what could be its first application for a rate adjustment in 23 years.

The country's lone power supply company has issued requests for proposals from consultants to help it prepare some of the studies that would make a case for an adjustment.

Manager of marketing and corporate communications, Stephen Worme confirmed to the BARBADOS BUSINESS AUTHORITY that BL&P was involved in preparatory work that could lead to filing a formal application with the Fair Trading Commission (FTC).

"There are certain things that we have to do, studies to examine the different issues relating to a rate application. At the end of that process, if it is indicated that we will need to go for a rate review, we will be doing so," he said.

While not stating definitively that BL&P would apply for a rate increase, he said: "All indications at this point suggest that there will be a time in the not-too-distant future where a rate review will be necessary."

BL&P requested and got its last rate increase in 1983.

Following complaints from consumers that BLP was using its fuel adjustment clause to boost its profits, the FTC hired London-based firm Castalia to investigate the charge.

In its report on the findings in January, the FTC said investigators could find no evidence that BL&P was "systematically" overcharging through the fuel charge.

In fact, Castalia found, in some instances the company was receiving less from the fuel charge than what it was paying for fuel to generate electricity.