Dana Malcolm
Staff Writer
Residents may still have to brace for higher electricity bills as FortisTCI is sticking to its guns regarding the necessity of its latest request for a 6 percent rate increase and has decided to appeal the government’s denial of the increase.
On April 11, the electricity company announced that it turned in a request to hire an independent arbiter who would look at its rate increase application and decide whether or not it was a justified application.
By law, FortisTCI has the right to carry out this process.
Now the Turks and Caicos Islands government is responsible for appointing that independent arbiter who will eventually have the final say in the matter.
FortisTCI maintains that the revised electric rates are necessary to expand the electricity system and maintain reliable service to customers, amid rising energy demand as the Turks and Caicos Islands economy continues to grow. This along with inflation is listed as the reason for the increase.
The arbiter can refuse these grounds or recommend a complete overturn of the decision made by Dileeni Daniel Selvaratnam, TCI Governor, on March 29. At that time, she refused the increase unequivocally. The last time an independent inquirer was called into the Turks and Caicos on a near identical application, the increase was granted to Fortis; that was in 2020.
By law the governor does have grounds to refuse this application for an arbiter but only if FortisTCI has failed or refused to comply with producing their accounts or other necessary information.
At this stage, FortisTCI seems prepared to do what it takes to see the process through to the end.
Under the Electricity Ordinance, suppliers can only charge what the Government allows them to; however, the Governor is mandated to take into consideration the operating expenses of the supplier, including taxes and the need to obtain a reasonable margin of profit when considering rates.
As for what will happen now, the Ordinance mandates that the independent inquirer along with any assistants will hold a public inquest, allowing any stakeholder or individual to sit in and give a written or oral contribution. While this part of the process is open, the actual report containing the recommendations will go to the Governor, who will be able to decide whether or not to share the findings with the general public.
The government is then law-bound to consider the report of the arbiter in its final decision.
