No electricity rate hike ‘at this time’—Padarath

Gail Alexander

Senior Political Reporter

There will be no electricity rate increase “at this time.”

Public Utilities Minister Barry Padarath announced this at yesterday’s post-Cabinet media briefing, after Cabinet rejected the Regulated Industries Commission’s (RIC) proposals which had been made during the last term for rate hikes for the T&T Electricity Commission (TTEC).

He also confirmed the RIC will soon have a new chairman, as the last chairman had resigned.

Padarath said one of the United National Congress’ election campaign promises was that an incoming UNC Government would not pursue accepting the RIC’s recommendations as it related to increased water and electricity tariffs.

He said Cabinet yesterday confirmed rejecting the RIC’s recommendations as it relates to the electricity tariff as follows:

(a) Cabinet agreed to reject the implementation of the final rates and charges for the first year 2023/24 of the regulatory control period of 2023/27 and the subsequent tariff adjustment exercise for each remaining year of the price control period for the electricity transmission and distribution sector as approved by the RIC on September 21, 2023.

(b) Cabinet also agreed that there be no increase in the electricity rate at this time in alignment with Government’s stated policy.

Padarath said the Government took the decision at this time to tell the public that while TTEC’s service needs to be fixed and bring it to a better financial standing, “we cannot do so on the taxpayers’ backs where you’re expecting a better quality of service, you’re not receiving that and at the same time you’re being asked to pay more. We found that to be unfair to consumers. That’s why we’ve taken this approach.”

He said the country is participating in the “patrimony that’s available to it… what that looks like at this point in time—we all know there are economic constraints, but we have to fix T&TEC before we can impose additional rates.”

Padarath, slamming former Public Utilities minister Marvin Gonzales’ views on the matter, addressed the $7 billion debt owed by T&TEC to the National Gas Company (NGC) as T&TEC’s gas suppliers for electricity production. He said the UNC inherited the debt, which was allowed to balloon unaddressed during the last nine years. He noted there is also $1.5B in outstanding receivables owed to T&TEC—all by public sector state agencies.

Padarath said both debts left T&TEC at times in a very precarious situation in terms of administration.

“Since entering Government, myself, and the Finance and Planning Ministers have been speaking and over the next couple days and weeks, we’ll be articulating on how we see a payment plan regarding the debt between T&TEC and NGC … there is a payment plan we’ll implement and we’ll want to have active consultation with the stakeholders T&TEC and NGC to address this,” he added.

Padarath said those matters will be addressed with a medium and long-term approach.

“We must also look at the outstanding receivables in terms of the operationalising element of T&TEC to get the company to where Government wants it to be,” he said.

He said Government’s move to not accept the RIC’s tariff won’t have a significant impact on T&TEC’s operations.

Padarath said Government will also look into alternative supplies of energy, whether wind energy on the east coast or working with multi-national companies in terms of increasing solar power and also the injection of capital investment into the energy sector to seek alternative energy supplies.

“There are other revenue raising measures that will be embarked on,” he added.

“But ultimately, it cannot be that the taxpayer is asked the carry the burden—that’s what the former administration was doing … we’re saying at this point in time we don’t intend to go down that road in terms of putting the burden on taxpayers until we can ensure you can get a better quality service and the company is brought up to better financial standing.”

He said he didn’t see non-implementation of the RIC’s proposals as undermining the RIC, but it was an option as it comes to the Cabinet to accept or reject.

Other announcements

Public Administration and AI Minister Dominic Smith also announced the launch of T&T’s first AI-driven digital assistant, called “Anansi” to provide information.

Asked about naming the facility after a trickster in T&T folklore, he said the name came from cultural folklore.

Transport Minister Eli Zakour also said new certified copies will be launched from next week and fixed penalty tickets will soon be paid online, while PTSC’s Chaguanas Transport depot will be opened next week. He said Government is looking at adding buses to the fleet, which has only 100 buses.