Consumers and most businesses across the Turks and Caicos Islands will not face electricity price rises for the next 12 months following discussions with Fortis TCI involving His Excellency, Governor Ric Todd, and TCI Government staff, it was announced today, Tuesday, 28 Feb 2012.
The Electricity Commissioner and Governor Todd declined Fortis TCI’s request in August 2011 to raise prices for residential consumers, businesses, small and medium hotels. This move will see commercial rates on South Caicos reduced too.
Electricity price rises will be limited to large hotels, defined as those using more than 4.2 million kWh per year, who will have their rates increased to 21.5 cents per kilowatt hour (kWh). Medium hotels will be reclassified as those consuming more than 300,000 kWh per year. All hotels in this category will see their rates unchanged.
“I have listened to the feedback of the people of the TCI who have made it clear to me that an increase in their utility charges will not be welcomed as they continue to adjust to the new taxation measures introduced late last year,” said Governor Todd.
“As I said at my six recent public meetings, I appreciate that the taxation system here in the TCI is regressive in that as consumption taxes they hit lower income households proportionally more. Future TCI taxation policy is clearly a matter for the next elected government, not the Interim Administration.
“However, the taxes were necessary as the Government seeks to cut its costs and raise its income as it works towards returning to a budget surplus which will allow it to better prioritise its spending and begin to pay off its $189m national debt.”
In addition, Governor Todd agreed to extend Fortis TCI’s service coverage to the smaller Cays between Providenciales and North Caicos and to East Caicos, the company will eventually extend the power grid to connect to South Caicos and thereby improve the resilience of the power supply across the service area and improve the operational efficiency and service reliability.
One further aspect of the agreement with Fortis TCI is the standardisation of electricity tariffs across the Fortis TCI service territory. This will be achieved in a two step process. Initially, commercial electricity rates on South Caicos will fall from 31.6 cents to 28 cents per kWh; by next year residential rates will be aligned across the service territory to 26 cents per kWh. This is the rate currently charged on the other islands. At that time, commercial rates on South Caicos will be further reduced from 28 cents to 27 cents per kWh. This rate rebalancing is designed to help to stimulate economic growth and development on the island of South Caicos.
The tariff changes will come into effect on 1st April 2012.
