IRC Stakeholder Consultation on Domlec’s License Negotiaition
The Independent Regulatory Commissioner Dr. Eisenhower Douglas said the IRC is designated by law to issue DOMLEC with a new license in order to continue its operations in Dominica on January 1st 2016.
He further explained that the purpose of this consultation is to advance the process towards the issuance of the new license which expires on December 31st 2015.
Dr. Eisenhower believes that the electricity supplies act number 10 of 2006, is the act which gave birth to the IRC.
He spoke of the hurdles that the commission was faced with and said that he is pleased with the evolution that has taken place over the years.
The Electrical Supply Act ESA poses a legal obligation on the IRC to ensure security and efficiency to supply electricity in Dominica.
The IRC has a duty of care to DOMLEC as well as consumers of electricity, in order to create a balance.
Dr. Eisenhower urges consumers to participate fully in the deliberations which will be held in Portsmouth on January 29th 2013, Marigot on February 19th 2013 and Grandbay on February 26th 2013.
He says Electricity is a form of energy and a crucial input into the process of economic growth and wealth creation.
The General Manager of DOMLEC Mr. Collin Cover gave a different perspective in matters of the IRC.
He spoke of the principles of regulation and the three foundational pillars are transparency, Independence (being free from political interference and act in the realm of the law) and being impartial.
He says regulation is necessary to set a leveled playing field for all persons and parties and prevents monopoly from abusing positions on the market.
Mr. Cover mentioned briefly that DOMLEC is being offered 2 licenses for transmission and distribution and a generation license.
Mr. Nasper Kaski Executive Director of the IRC reiterated on transparency and consultation as part of the rules of the IRC to ensure that stakeholders are informed and consulted.
He provided an overview under sections 18, 19, 20 and 21 of the Act established the Independence, reach and duties of the IRC
The ESA says the term of generation license must be tied to the existing life of the generation facilities. The Commission believes the Act did not anticipate that there would be one license.
Mr. Kaski made a valid point when he says that investors wish to be adequately assured of recovering their investments over a real estate period of years.
He then asked that the period for the duration of the generation license be for a minimum of 25 years.