The Fair Trading Commission (FTC) has denied a Barbados Light & Power Co. Ltd (BL&P) proposal which would have assured the utility company of a higher financial return on investments in its electricity generation plant.
In a March 25 decision on BL&P’s Application For A Review Of Depreciation Rates And Approval Of The Depreciation Policy, the regulator approved three of four areas requested, including the value of the transmission and distribution and general plant assets.
However, the FTC’s acting chief executive officer Dr Marsha Atherley-Ikechi said that based on the information provided by the applicant, “the depreciation rates for [the] generation plant [at the Garrison and Spring Garden] as set out in the application are not approved”.
BL&P said yesterday it was “reviewing and seeking to understand the FTC’s decision”. Director, customer solutions and regulatory affairs, Kim Griffith-Tang How, added that they would also seek clarity from the FTC and provide additional information if required.
The ruling has implications for BL&P’s application for increased electricity rates which, if approved, will equate to a $46.5 million increase in revenue. (SC)
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