Minister of Utilities Hon. Kyle Knowles has asked sole light and power company Fortis to furnish government with more information justifying its 6 percent rate increase demand.
The minister made the request public through a news release.
According to the release, the Energy and Utilities Department has commenced review of an application for a 6% increase in electricity rates by FortisTCI. The release stated that Government is committed to a close examination of a proposed rate increase (if approved) to be effective April 1, 2024.
According to the release, over the past three weeks, the Energy and Utilities Department has been analyzing the information provided, seeking further details that may aid in the justification of an increase and evaluating the responses.
It said that under the limited review process allowed by an agreement made in 1987, government has only six weeks to complete its review before providing a full response. In the case that the application is denied, the same agreement allows FortisTCI to appeal the decision by referring it to a government-appointed independent enquirer.
“The Government will continue to exercise due diligence in its examination of the case put forward by FortisTCI, but the timeframe is very tight,” Knowles said.
He further noted: “the 1987 agreement on rate-setting does not give the Government the kind of authority found in modern regulatory systems. The authority to require studies, provide expert opinions and enable testing of evidence is missing in the TCI rate-setting process.”
He added: “This government will soon begin consultations on a policy to increase regulatory oversight of utilities in these Islands”.
Within the confines of the present process, the minister pointed out: “The government will continue to press the utility for as much information and justifications as it can before the deadline”.
Following the receipt of the information requested, the Energy and Utilities Department will make a submission to the Government. Subsequently, a decision will then be made, and notification sent to FortisTCI and made public on or before March 31, 2024.
Rate Case Facts:
The date of FortisTCI Application: February 14, 2024
Date by which the Government must respond: March 30, 2024
Amount requested: 6% increase (if approved).
Additional Notes: On August 30, 2012, Fortis TCI acquired the entire share capital of Turks and Caicos Utilities Limited.
Last rate increase application: 2018
Amount requested: average of 6.8%.
Amount granted: 6.8%.
Year Granted:
The increase did not take effect until 2020 when the courts rejected a government decision to deny the findings of an independent enquirer.