Barbados power grid project could lead to higher electricity bills in future

Barbados: Residents of Barbados can face higher bills in the future after the Fair Trading Commission (FTC) approved three new machines for Barbados Light & Power Company (BLPC) to strengthen the power grid. The approval was given after BLPC requested about BDS$78.72 million for four machines.

Electricity rates could rise because the cost of the approved equipment may be passed to the customers through increased electricity bills. But, as of now, there will not be any immediate increase in bills.

BLPC had asked to install four synchronous condensers but the FTC approved the installation for three of them. The company can also buy the fourth equipment but it will have to pay for it by itself. Otherwise the fourth equipment could only be bought if a future rate review finds the equipment necessary and useful.

The machines will keep Barbados’ electricity system stable and they will also support the country as it uses more renewable energy.

There are some conditions that are set by the FTC for the project. The FTC says that the BLPC should submit an updated application and also give a clear plan for the work. It must also provide regular updates on the progress of the project.

The company will have to report every three months. Besides the progress, the company is also required to inform the FTC about major changes to the project’s costs, risks or schedule.

The renewable energy advisor, Aidan Rogers said that any effect on customers would only come after a future review of electricity rates.

Some of the people that are involved in the review said that the project’s cost is questionable.

The Office of Public Counsel questioned the quantity of machines as they said that four machines might be a better option.

The FTC said that the BLPC should address and resolve the issues that are related to the project’s cost and the factors that can increase the project’s cost in the future.

The Barbados Consumer Empowerment Network also said customers’ interest is important as Barbados is moving towards greater use of renewable energy.