By the first quarter of 2018, the Regulated Industries Commission (RIC) would complete the rate review for cash-strapped T&T Electricity Commission (T&TEC) and the Water and Sewerage Authority (WASA). Confirmation came from the chairman of the Regulated Industries Commission (RIC) Hyacinth Guy.
“We anticipate that by the first quarter of 2018 we will be completed with both reviews,” Guy said in a telephone interview yesterday. Guy said so far a framework for reviewing the rate for T&TEC has already been done, while one was being developed for WASA. The review process will involve three phases, the last of which would be a public consultation. Delivering the budget presentation on Monday, Finance Minister Colm Imbert disclosed that T&TEC commands an annual $750 million subsidy, while WASA has a higher transfer level.
Imbert said the new rates will be imposed in 2018. Guy said the RIC has been working apace with the review process for the last few months. Once the reviews are completed, the new rates will be handed over to WASA and T&TEC, following which the population would be informed what the tariffs would be. She could not say when the new rates will go into effect. The last time WASA and T&TEC increased it rates was in 1993 and 2006 respectively.
“Had the rates been done incrementally, we would not have been so far behind.” Guy said while setting new rates involve stringent analysis and scientific work, the RIC also has to ensure that both public utilities operate efficiency and consumers get value for money. Should both utilities fail to deliver proper services after the new tariffs go into effect, Guy said the public can seek recourse through its agency. She said T&TEC and WASA would have to agree on a quality of service standard. A big part of establishing a rate review is hinged on the quality of service standard they have to deliver, Guy said.
“There is a model we use to gather information from the utilities and we analyse that information critically. We have to be sure that the information we have must be able to withstand scrutiny in far as efficiency is concerned.” The RIC, in a Facebook post, showed the rates T&T consumers pay for electricity and water compared to other Caribbean countries. Of nine Caribbean countries listed, T&T has the cheapest residential electricity rate at US $0.04 per kWh, compared to Grenada’s U$ $0.43 which was the highest.
From a list of 12 countries, T&T was ranked as having the second cheapest residential water rate of US $0.31 per cubic metre. Suriname was the least expensive with US $0.29, while the Bahamas was the most expensive with US $3.72. Guy said the revenue that will be generated from the new rates will help T&TEC and WASA become less dependent on the State for funding.
“When you do a rate review it is with that in mind. It has been an uphill battle for WASA financially, Guy said since the last rate review was 24 years ago.
COMPARISON OF CARIBBEAN’S RESIDENTIAL ELECTRICITY RATES
Country US$ per kWh
T&T 0.04
Barbados 0.28
Jamaica 0.32
Grenada 0.43
Belize 0.22
St Lucia 0.34
Bahamas 0.32
Antigua 0.37
Dominica 0.38
COMPARISON OF CARIBBEAN’S RESIDENTIAL WATER RATES
US$
Country per cubic metre
T&T 0.31
Suriname 0.29
Guyana 0.50
Grenada 1.06
Dominica 1.27
St Vincent 1.28
Barbados 1.38
Jamaica 1.72
Belize 2.18
Antigua 2.58
Aruba 3.70
Bahamas 3.72