#Providenciales, Turks and Caicos Islands – Thursday October 4, 2018 – A statement from FortisTCI overnight points to weak communication from the Government and Governor with the country’s sole electricity supplier on the vital matter of a possible electricity rate increase.
FortisTCI explains that it was as early as August that the company requested an independent expert to review its application and in a media release on Wednesday night revealed, “Neither the Governor nor the Government engaged FortisTCI in any discussions on the application. Without further comments from His Excellency, FortisTCI received his Notice refusing the application on August 17, 2018. Given the significant body of supportive information before him (including the substantial application, the S&P Report, and the Castalia Report), the company did expect some level of engagement.”
FortisTCI maintains that the company’s rate variation application included detailed information and an exhaustive report which explained the rationale for the rate increase request. The S&P Report exposed negative outlook for FortisTCI, downgrading the company from stable to negative after FortisTCI spent $32 million on hurricane restoration in 2017.
The negative outlook is forecast into 2020 and FortisTCI, projects that despite reducing dividends to its parent company, not getting the rate increase will cause the power supplier to continue to be in poor financial health.
Now that an independent expert is approved by the Governor for review of the increase application, FortisTCI says it is looking forward to the next phase of the process.