Dominicans May Benefit From Significant Decrease in Electricity Bill
On Thursday March 6th Dominica’s electricity supplier, DOMLEC, presented a case of its depreciation policy to the Independent Regulatory Commission (IRC) during a consultation at the Fort Young Hotel.
The purpose of this meeting was to discuss one of the businesses’ operating costs – depreciation – to determine tariffs for DOMLEC.
The depreciation study came about when the company decided to account for the assets of the company.
In some cases the lives of assets were extended because they were still being used.
According to Mr. Lancelot McCaskey, Executive Director at IRC, there has not been any review of DOMLEC’s rate since the IRC began its operation in 2008.
In support of its request for a review of the Depreciation Policy, DOMLEC provided a Depreciation Study, dated September 2013, conducted on its behalf by American Appraisal.
The Commission has given DOMLEC until September 30th 2014 to present a new tariff.
Mr. Collin Cover, General Manager at DOMLEC, says if the rates brought forward are agreed upon, utility rates for customers could decrease by 2.6 million dollars annually.
“Using the new rates that DOMLEC is proposing, the depreciation expense for 2013 would be 8.4 million dollars. This means that if the new rates are agreed on the Revenue Requirement would decrease by 2.6 million dollars annually, on average, roughly”, he stated.
The IRC strives to establish rules and guidelines which will allow for consistency, predictability and transparency in the regulation of electricity supply in the nation.
Dependent on the depreciation of the company’s assets and its other cost of operations, utility users would witness a significant change to their electricity bill per rate.