Bridgetown.
The Fair Trading Commission (FTC) has initated a motion to review the contentious fuel adjustment clause used by the Barbados Light and Power Company (BL&P).
The fuel adjustment clause was approved by the FTC as a formula that the BL&P is permitted to use to pass on the cost of fuel used to generate electricity for use by Barbadians and has been in operation for the past 30 years when the former Public Utilities Board approved the mechanism.
At the last rate hearing of the BL&P in 2009, the successor to the PUB, the Fair Trading Commission approved the power company's continued use of the fuel adjustment clause.
Legal counsel for the Commission Kim Griffith-Tang how says they believe a change is necessary now for transparency .
According to Griffith-Tang the FTC believes that based on the current formula the BL&P uses projected figures rather than historical data and the change will allow for greater scrutiny and transparency.
The FTC is contending that the BL&P should base the fuel adjustment clause on the previous month's cost of fuel and consumption.
Griffith -Tang was not sure if this change will result in lower light bills for Barbadians, but notes that consumers will be more aware and certain about how the power company arrives at the fuel cost of light bills.
The lawyer told Trakker News timelines have been set by the FTC for the receipt of responses and the exchange of documents among parties, to help in a just and speedy conduct of the motion, which will run until June 28th.
Griffith-Tang said interested parties have until June 7th to put in letters of intervention to the FTC indicating that they want to take part in the motion.
She stated once the letters have been received and status granted the procedural directions will be issued as to how the motion will proceed.Evidence can be submitted by affidavit or by a written submission.
At the last rate hearing in 2009 brought by the BL&P, which was heard by the FTC, ten intervenors were involved in the process.
