Decision in


The Barbados Light & Power Company Limited will now have to calculate the fuel adjustment clause, which is included in the bills of consumers, by using costs, based on past bills, rather than projections. This is the ruling of the Fair Trading Commission after completing its review of the fuel adjustment clause.

The FTC has ordered that the new formula, which the BL&P now has to apply, requires that the percentage of energy used by auxiliary equipment such as feed pumps and cooling fans in the generating stations, and the losses that occur through the transmission and distribution of electricity, must be subtracted from the gross energy produced.

The commission also decided that the utility company would include, too, the adjustments for any cumulative under- or over-recovery of fuel costs from the previous month.

”The Barbados Light & Power Company Ltd will be permitted to employ the smoothing technique at its discretion. The commission believes that smoothing will reduce the impact of significant fluctuations in the FCA from one month to the next,” the FTC decision stated.

The power company is also ordered to advice the commission, whenever it makes its monthly reporting, of the extent to which the fuel clause has been smoothed. The BL&P must also provide to the FTC, information on all the factors that were taken into account to determine the smoothed fuel adjustment clause.The company, in its monthly and quarterly reports, has been instructed, as well, to provide information to show how the Renewable Energy Rider credits are included in the calculation of the FCA. (EJ) 

Leave a Reply

Your email address will not be published. Required fields are marked *