The Dominica Electricity Services Limited (DOMLEC) Wednesday announced that it had received approval for a new electricity tariff rate from November 1, this year, saying the approval marks an important step in the continued evolution of island’s electricity sector.
In a statement, DOMLEC, the lone supplier of electricity on the island, did not indicate the level of the new tariff which it said had been approved by the Independent Regulatory Commission (IRC). It said the last tariff review was undertaken in 2007 even though a tariff review every three years is mandated by the Electricity Act.
‘Despite the inflation over the last two decades, our fixed charges for operations and maintenance haven’t been adjusted since; this change allows us to address needs that allow us to deliver a better service,’ said DOMLEC’s general manager, Dwayne Cenc, adding that the approval is critical to the company’s ability to provide quality service and ensure reliability of electricity supply to customers.
The IRC had earlier indicated that the new structure includes lower rates during off-peak periods and that before implementation, DOMLEC is expected to carry out public relations and outreach activities so customers can become familiar with the changes before they begin appearing on electricity bills.
The new tariff structure will be applied in accordance with the approved regulatory framework, IRC’s executive director Justin Kase said.
‘The Commission intends to monitor customer bills from this period through the end of the year and potentially longer. The exercise will examine whether the expected impact is appearing on bills while also determining whether DOMLEC is achieving the revenue targets established through the rate review.
‘That follow-up matters, because a tariff review is ultimately tested outside the consultation room. Customers experience it through the bills they receive each month,’ Kase added.
The approved tariff takes effect as the country advances its transition towards a more sustainable and renewable energy-based electricity system, including the introduction of geothermal power into DOMLEC’s energy mix.
DOMLEC said geothermal power is an indigenous renewable energy resource that reduces the electricity system’s dependence on imported diesel fuel, which is subject to international market price fluctuations.
According to DOMLEC business development engineer Felix Julien, customers are already experiencing the positive impact of Dominica’s growing use of geothermal energy.
‘Geothermal is already helping to cushion the high cost of fuel, and we are seeing our prices starting to stabilise due to its increased production.’
The country’s investments in renewable energy, battery energy storage and related infrastructure are part of a broader effort to achieve the national goal of 100 per cent renewable electricity generation by 2030.
DOMLEC said it recognises that changes to electricity rates are of significant interest to customers, and is committed ‘to providing clear, timely and accessible information to help customers understand what the approved tariff means for their electricity bills.
‘Over the coming weeks, DOMLEC will provide customers with additional information on the new tariff, including explanations of the different customer classes, how electricity bills are calculated, the role of the fuel surcharge, Time-of-Use considerations and practical ways customers can manage their electricity consumption.’
DOMLEC said in the meantime, customers are encouraged to understand their customer class, review their electricity consumption and take advantage of opportunities to manage their energy use. Simple actions such as switching off appliances when not in use, using energy-efficient equipment, and being mindful of when and how electricity is consumed can contribute to better control of monthly electricity costs.