TCI News

Cost of Service study on FortisTCI is mandatory for PDM Administration as rate increase is considered

#Providenciales, Turks and Caicos Islands – October 22, 2018 – The results of an historic study will guide the Turks and Caicos Islands Government in its decision on a rate increase request by the nation’s electricity provider, FortisTCI.

Premier Sharlene Robinson addressed the media and general public on the contentious issue which has seen polarizing statements delivered by all sides – including the general public – in the matter which could result in higher power bills.

“The study has never been done before in the Turks and Caicos and my Government is committed to making sure that this critical work is done before we can agree a cost of rate increase.”

FortisTCI has clearly expressed sinking disappointed that there has been no face to face discussion with TCIG on the rate increase application.  Early this month, Fortis launched its own online survey to find out what customers think.

It was revealed that in late September, the Governor acquiesced to the idea of allowing an independent inquiry to determine if the increase of an average 6.8 percent is fair to the consumer and FortisTCI.

“This survey will form a part of the evidence for the commission of inquiry and will look into the true cost of the production of electricity.  It is important that I say that it does not look back to apply, it looks back only to look forward and its findings will not be retroactive.”

FortisTCI has reported that the company’s financial health is at stake; exposing to the public that the company has suffered a downgrade in its financial rating and outlook by Standard & Poor’s after a reconstruction and restoration bill of $42 million in the aftermath of hurricanes Irma and Maria of 2017.

The Government this past summer, recommended at the Cabinet level that the request be declined until the Cost of Service study is completed.

 


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