BLPC gets approval to recover rental cost

Barbadians can expect higher electricity bills after the Fair Trading Commission (FTC) approved an application by the Barbados Light & Power Company Ltd (BLPC) to recover the costs of temporary rental generators through the Fuel Clause Adjustment (FCA).

The decision, “with immediate effect”, was handed down last night by FTC chairman Donley Carrington following a five-hour virtual hearing and allows BLPC to recover the rental and operating costs associated with six megawatts of additional temporary generation and extends approval for the company’s existing 11 megawatts of temporary rental generation from end of this month through to December 31, 2027.

The FTC is the statutory body responsible for regulating utility services in Barbados and has the authority to approve, reject or modify applications made by utility providers, including requests that could affect the rates ultimately paid by consumers.

“This oral hearing is now called to order,” Carrington said at the start of proceedings, noting that the Commission was convened to consider BLPC’s request for approval to recover the costs of additional temporary generation through the FCA and to extend approval for the existing rental units.

Based on the BLPC website, “the FCA is a mechanism for the BLPC to recover the cost of fuel used in the production of electricity. The cost of fuel purchased is recovered and applied equally to all customer groups through the FCA charge. Changes in the FCA are influenced mainly by movements in the purchase price of fuel. The FCA is calculated monthly as the sum of the previous month’s cost of energy purchased and cost of fuel consumed, plus any cumulative over and under recovery divided by the kWh sales of the previous month. The cost of energy purchased includes energy purchased from renewable energy resources.”

The hearing panel comprised Carrington and Commissioners Dr Ankie Scott-Joseph, Genevieve Maynard, Jerry Franklin and Celiane Cicharan.

Appearing for BLPC were chief executive officer Roger Blackman, attorney Senator Ramon Alleyne along with attorneys Rene Butcher and Zaria Weatherhead. Representing the Office of Public Counsel was legal officer Danielle Cox on behalf of Public Counsel Sandra Rollins.

Intervenors included attorney Tricia Watson, Ricky Went, who appeared on behalf of the public, Stephen Worme and Maureen Holder, executive chairman of the Barbados Consumer Empowerment Network, who all made submissions.

At about 7:25 p.m., Carrington delivered the commission’s ruling after outlining the extensive material reviewed by the regulator.

“The commission has considered the application filed by the Barbados Light & Power Company Limited dated the 25th of November 2025, the affidavit and supporting materials filed in support of the application, the interrogatories and responses, the written submissions of the Barbados Light & Power Company, the Office of Public Counsel and the intervenors and the record as a whole,” he said.

“In addition, the commission considered the oral submissions made today.”

Before announcing the decision, he addressed concerns raised by Watson regarding the commission’s conduct.

“The commission rejects those allegations and insinuations as baseless and scandalous,” Carrington said, referring to claims suggesting the regulator had secretly pre-approved an earlier application or acted improperly during the process.

“The commission will disregard unsupported allegations and will decide the application on the record and in accordance with the law.”

He then announced the commission’s findings. “Having heard the applicant, the Office of Public Counsel and the intervenors, the commission is satisfied on the record presently before it that the application should be approved. Accordingly, the commission orders as follows: Barbados Light & Power Company is approved to extend the existing 11 temporary rental generator units and an additional six megawatts temporary rental units through to the 31st of December, 2027,” Carrington stated.

He noted that any future extension beyond that period would require further FTC approval.

“The Barbados Light & Power Company will be required to inform the commission in writing of the need for any extension of approval and any revised contractual details no later than four months prior to the expiration of the approved contract.”

Carrington also stressed that the commission’s approval was not a blank cheque for the utility.

“The Barbados Light & Power Company shall be limited to recover rental and operating costs associated with those units through the fuel cost adjustment and such costs to be prudently incurred, reasonable, properly attributable to the approved temporary rental generator units and supported by adequate records,” he said.

The chairman said the ruling should not be interpreted as approval for any permanent generation project. (NS)

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