The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

An electricity sector tariff review will be completed by summer 2021 with the entire sector showing “great interest” in completing this pricing review.

Shevonn Cambridge, the Utilities Regulation and Competition Authority's (URCA) director for energy, speaking at a Zoom conference on its 2021 draft annual plan, said: “The tariff-setting guidelines have to do with the rates that you pay. From a regulatory perspective, there are a number of different ways of assessing and setting tariffs.

"But you don't want to do that by way of surprise or ambush, so to speak. So what we've done is we've been doing some research as to what is the best, or what we think would be the most appropriate forms of, setting the tariffs locally. We do that by looking at how a tariff is set now, how tariffs are set globally, where the trends going on.

“So it's not only an economic assessment; it also has to do with how are things changing in the industry.” This review will begin by the end of February with expected completion by summer 2021.

Mr Cambridge added: “Previously, when tariffs were set, we were dealing more with conventional fossil fuel-type generation, but now we are now seeing the advancement and adoption of more renewable sources.

“So this requires a different mindset. And so we're out there doing the research, we're putting together the ideas as to what would be most appropriate and applicable in The Bahamas, and then we put it out for consultation. You, as stakeholders, are then able to provide your feedback and we take that into consideration. And we will then say that these are the new guidelines as to how we set tariffs.”

Mr Cambridge said URCA is undertaking a tariff study because the situation is “changing rapidly” in the industry, and URCA has to keep pace with evolving global standards and new technology.

“We have great interest from utilities in reviewing their tariffs, and so we need to set the guidelines and the rules as to just how you go about making that application to URCA, what we will be taking into account when we review those tariffs, and what we will do in terms of putting those tariffs in place," he added.