News
FortisTCI increase DENIED by Governor
Dana Malcolm
Staff Writer
#TurksandCaicos, April 7th, 2024 – FORTISTCI will have to get an independent arbiter to help its case for a 2024 increase application following the second denial of a rate hike by a Turks and Caicos governor in seven years.
A resounding “no” came from Dileeni Daniel-Selvaratnam, TCI Governor, regarding the six percent increase request from the electricity company on March 29, one day before the government’s deadline to decide on the hike.
“The Government is prepared to engage in this process to ensure that any rate adjustments are not only justified but transparent and in the best interest of the people of the Turks and Caicos Islands,” Daniel-Selvaratnam said, but did not provide any detailed reasons for refusing the application.
It leaves residents in the dark about whether the increase was considered too high, too soon, unevenly distributed or any other of a myriad of possible shortcomings.
The decision from the Governor mirrors that of a 2018 request where FortisTCI had sought a 6.8 percent increase per billing cycle to
At the time John Freeman, then Governor of the islands, refused and provided his reasons; the two grounds were:
‘…a lack of impartial and neutral information and assessments regarding the efficiency of investments plus no ability to compare the real costs of providing electricity services and how those costs were spread onto consumers.’
The second reason Governor Freeman gave was the need to conduct a cost of service study and prudency assessment to enable an informed and reasonable decision to be made on the request.
The lack of time to properly consult with experts, because of the short six week deadline, was again cited as a point of frustration by the current government in the 2024 decision.
In 2018 FortisTCI filed an application for an arbiter to reassess the Governor’s decision. It took two years but that Independent Arbiter found that the increase was justified and the government was duty bound to grant it.
That increase came into effect on July 22, 2020.
Fortis and TCIG worked out a deal to protect all customers using less than 300kWh per month leaving them with no increase.
Similarly in 2024, if Fortis brings arbitration and wins, the government will again be duty bound to grant them the six percent increase despite what the Governor has decided. That increase would see electricity bills rising between $2 and $15 dollars a month for customers depending on their usage, according to the power company.
Already the response from the electricity company is a double down on the fact that rates are needed it said: ”The Company maintains that the proposed revised electric rates are necessary and warranted. FortisTCI is currently reviewing this latest development within the provisions of the rate review process and will provide further information to customers in due course.”