#Providenciales, February 25, 2019 – Turks and Caicos – Government is determined to ensure there is a study done before FortisTCI is granted a rate increase. The nation’s electricity provider applied for a rate increase of seven percent in July 2018.
During House of Assembly meeting this past Monday, Goldray Ewing, Minister of Infrastructure and Housing gave a ministerial statement which briefly updated on the FortisTCI rate variation application.
“Mr. Speaker, the procurement process for the retention of expertise to conduct a cost of service study of FortisTCI is ongoing. Mr. Speaker this study is critically important to understand the real costs associated with the provision of electricity services to the various customers in the Turks and Caicos Islands.”
FortisTCI has cited that the cost of recovery after Hurricanes Irma and Maria to the tune of $32 million in 2017 are largely the reason the company needs to hike rates.
The Minister explained that, “…my Ministry is finalizing the Terms of reference for the retention of an independent expert to conduct an inquiry into the reasonableness of the Rate Variation Application submitted by FortisTCI. This undertaking is a statutory requirement following the Governor’s decision to decline the request.”
A previous Magnetic Media report explained about the S&P Report: ‘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.’