DMA bats for cheaper electricity

high billPresident of the Dominica Manufacturers Association (DMA), Jean-Yves Bonaire, has told DNO that the association will fully support any action taken by the government to reduce the cost of electricity.

According to him, the high price of electricity is having a major effect on the manufacturing sector in Dominica.

“It will be very difficult right now for the sector to grow with such high prices in electricity,” he said. “We the manufacturers are in strong support of any initiative that can bring down the cost of electricity on island.”

Speaking on Kairi’s Heng Program prime minister, Roosevelt Skerrit, said that the country has not been able to take advantage of manufacturing to the extent that it would like to because of the exorbitant cost of electricity.

“It is uncompetitive, every one of us who pay light bills in Dominica will know that we are spending too much for electricity,” he said. “The question therefore is how do we confront this high electricity bill in Dominica?”

According to the prime minister, since the cost of fuel is high, the price of electricity will automatically be high.

He believes geothermal is the best way forward.

“The price of a barrel of fuel now on the market is USD$110 a barrel, so we are importing these prices in Dominica,” Skerrit said. “The question therefore is, what is the alternative to fossil fuel that we import? How do we go about relieving the pain and the suffering of the private sector and other consumers? All the studies have shown that Dominica’s escape is through geothermal.”

Bonaire agrees with the prime minister’s position.

According to him geothermal will be one of the best methods of obtaining cheaper electricity in Dominica.

“Generating electricity from petroleum products is something that nobody can control at our level,” he said. “The price of petroleum products depends on factors that are beyond our control, so we should as much as possible stay away from electricity generated that way. The geothermal is certainly one of the best opportunities to achieve a reduction in the cost of electricity.”

 

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41 Comments

  1. Jay
    May 23, 2014

    The P.M. is disingenuous. As one blogger has already observed the oil price quoted by Mr. Skerrit is for a barrel of Brent crude. We do no import any crude oil and certainly not high grade Brent crude, which demands a premium. We import finished petroleum products, the most important of which is diesel fuel, refined from lower grade, more sulphurous Venezuelan crude. We do not import oil by the barrel but ready-to-use fuel by the gallon., in which measure it is also sold to Domlec. I challenge Mr. Skerrit to disclose what the price per gallon is that we are billed by our Venezuelan suppliers. We already know what Domlec has to pay so we can establish that no excessive gross margins are made by the intermediate companies Petro Carib Dominica Ltd. (45% Govt. owned) and the 100% Govt. owned National Petroleum Dominica Ltd. It would be a travesty if such profits negate the original objective to achieve lower fuel- and therefore lower energy costs because of advantageous pricing and favourable financing by getting into bed with Venezuela.

  2. truth
    May 22, 2014

    HA<HA<HA<HA<
    skeritt is using all institution in dominica to play his politics,

    why now skerro? why now?
    No proijects in the last four yers ,,,
    all projects in one year, HA HA HA
    ELECTION ELECTION ELECTION
    You will fool the fools ,NOt the wise

  3. Anonymous
    May 22, 2014

    We have found OIL on the bowels of Morne Diablotin and also in the belly of Morne Trois Piton. Will we ignore common sense and go drill it!!!!!!!

  4. von
    May 22, 2014

    When Geothermal come on line, is it gonna be owned by we the people and government of Dominica? or some rich foreigner or Company?… If it owned by Dominica and its people, our light bills will be low, however if it is owned by foreigners or foreign company….THINGS WILL BE THE SAME!

    The country will not benefit because all the profits will be going abroad…smh :(

    • joe
      May 23, 2014

      Start listening to other radio stations, give Q95 a break because your questions have been answered many times on DBS and Kairi FM.

      Q95 prefer spread the negatives about Geothermal to scare the masses, but we the people in Dominica do not listen to them!!!!

      We all know it is the Government of Dominica that is spending the money so it is obvious it will be owned by the Government of Dominica, hope i answered your question.

  5. JOE
    May 22, 2014

    Let me tell you people something the same mr.skerrit told dominicans they will see a reduction on light bills with alba and petro carib what did we see rapid increases up to this day so skeerit speaking now is just a joke. skerrit and his boys dont feel nothing cause they have good cash.

    • joe
      May 22, 2014

      JOE let that joe tell you something we do not control the cost of petroleum use your head!!!!

      Geothermal is ours we will determine the price we sell it..

      Finally if we had discovered oil people like you JOE would fight against us drilling it simply because you HATE Roosevelt Skerrit soo much!!!!

  6. Anonymous
    May 22, 2014

    But petro Caribe was suppose to be one solution to cheaper electricity ….remember folks…..partnership for energy!

  7. Annon
    May 22, 2014

    Gov’t needs to partner with the Chinese, dinner with aligators, whatever it takes to buy back Domlec. Gov’t managed it very well before it was sold, with Dominicans buying shares.

    After all, if they can make $8 million then Gov’t will and should be able to take in less PROFIT (yes $5 or $5.5) and pass the rest to customers. No private firm will do that. It may cost a hundred million or what ever, but in due time the profits will be ours. It will be a win/win for us and future generations, pun intended.

  8. May 22, 2014

    Domi nicans please sit back and expect the government to nurse you .All forms of utilities is generally owned by private sectors where else in the world would they blame the goverment for high cost of living except in DA. Thank God that they no longer charge people with treason you would all be in prison. Wise up stop making yourselves look backward and live up to the expectation of the region. Stop the foolishness.

    • JoJo
      May 23, 2014

      But do you know the Govt. own the companies or have a share in the companies that supply the diesel to Domlec? Why is that so and Domlec cannot buy their diesel direct from Venezuela at that low price themselves? Diesel is what makes our electricity so expensive. And tell me, do you pay 15% vat on your electricity bill in the U.K. like we do in Dominica? is that not Govt. tax also?

      • joe
        May 23, 2014

        JoJo in UK u pay 20% VAT on utilities, just so you know!!!

  9. May 21, 2014

    In general, all of this has to do with the sign of the coming of the end of the ages; God’s Word tells us that this end will bring the days of a “Great Tribulation”, which no flesh would be able to survive through–except that God has promised to make those days shorter for the sake of His chosen people.

    What we need to do as people is to learn to make the best with what we have now, and to be patience through our desire for better things–patience is the virtue of faith in the Power and Authority of the God who created us.

    We learn from God’s Word that “faith” is the “substance” of things not seen and the evidence of things “hoped” for. This means that with faith and hope, it is like we already have the things which we need; and by God’s Power and Authority to control both Life and none-Life–He will cause our needs to manifest in their physical form–His plan for us, long before we were even in our mothers’ womb. God will keep His promise.

    There is the saying that nothing comes easy–in other words, God will not serve us on a silver platter; and it will get worse before it begins to get better–this means that there has to be a climax of things; and after that climax comes the cool–in whatever way that cool is supposed to manifest. Cool here means being at peace and tranquility.

    What we need as people, is the reverend fear of God through trust, humility, and obedience. Human pride and the passion of the flesh is part of the greatest weapons which the enemy hands out to us.

    We easily accept this weapon from him, but we do no know that that weapon is for our own destruction –God is not protecting those who will not take heed of His Laws in Love–the Life which He gives to us at no cost.

    • May 22, 2014

      The world and its issue of poor economics is as it is today, because of God’s plan for Life in His people–for all we like sheep have gone astray; we have turned, every one, to his own way–Isaiah 53: 6

      Jesus tells at Matthew 24: 37-39 “But as the days of Noah were, so also will the coming of the Son of Man be. For as in the days before the flood, they were eating and drinking, marrying and giving in marriage, until the day that Noah entered the ark, and they did not know it until the flood came and took them all away. So also will the coming of the Son of Man be”.

      This means that while we are busy minding things, which we can never understand in the first place, and they have little effect on our existence today; we are ignoring what is most important, what will take us to an existence in Eternity–this “what” is the call from God to live the Life of Love–the only Life there is–but we don’t understand or we do not care to try to understand–that is the reason we will be taken by surprise.

  10. BEB
    May 21, 2014

    They are saying that Geothermal is the best thing for DA. Right now , they have spent over $50 million and we do not know how many more millions will be pumpted into the project to complete it , if and when that project will be completed, they will then tell us that too much money were spent so we will not be able to get any relieve now . As I’m thinking, I am 68 yrs. now, I will not live to see geothermal not even my grand children will live to see geothermal.
    I cant understand that with a small island like ours {DA} with 34000 customers, DOMLEC is making over $8 million profit in one year. They are milking us dry. We are paying the most within all the other Caribbean islands, $1.16 per every kwt. hour in Dominica.
    The Govt. informed us that we would be getting a relief from electricity and petrol, when petro Caribe { Energy for Integration} would be introduced, for so many years now since that project has been in use, we are still bawling for help from DOMLEC ,I’m appealing to DOMLEC please, do something for us the customers.

    • looking
      May 22, 2014

      Plus 15% VAT

    • Grayson Stedman
      May 22, 2014

      I would like to response to both BEB and ANNON and any other persons with similar remarks. Domlec made a profit of $8.84 million, but Government collected $3.96 million in income tax. If $3.0 M of the profit of $8.84 M was passed back to the consumers the reduction in their rate would be 3.6 cents per unit or a saving of 3.0%. The average is $1.10 per unit. When Government owned Domlec, the cost of fuel was very much less that US$100.00 per barrel of oil and the fuel surcharge was only a few cents, there was no 15% VAT. It should be noted that the 15% VAT was introduced in 2003 after the government requested assistance from the IMF and the custom surcharge on fuel was added. Also if government had owned it, there would be plenty of inefficacies, many will not pay their bills on time or don’t pay, Domlec will have cash inflow problems, unable to buy fuel on time, consumers facing regular black outs and very poor services. Check the Domlec financial statement for the figures. BTW, it is in government interest for Domlec to continue buying Petro Caribbe fuel. When oil is less then US$100.00 per barrel, the government only pays 60% up front and the other 40% is to be paid over 25 years This is cash the government can use for it own agenda. I would welcome your response and from others.

      MARKEY.

      • Simply the Truth
        May 23, 2014

        Hi Grayson, you said it well because you are aware of the situation and experienced. Say hi to your Sis. I will be speaking to her soon and will inform her that I read your comments. No name please! :lol: Take care! God bless!

      • Jay
        May 23, 2014

        Thank you. This is very informative. Would you also happen to know how much in VAT Domlec collected on behalf of Govt., in addition to the $3.96 million paid in corporate profit tax? It looks to me that, especially when we add profits accruing from Petro Carib Ltd. and National Petroleum Dominica Ltd., the Govt. makes far more from electricity generation & supply than Domlec does.

    • Grayson Stedman
      May 22, 2014

      I would like to response to both BEB and ANNON and any other persons with similar remarks. Domlec made a profit of $8.84 million in 2013, but Government collected $3.96 million in income tax. If $3.0 M of the profit of $8.84 M was passed back to the consumers the reduction in their rate would be 3.6 cents per unit or a saving of 3.0%. The average is $1.10 per unit. When Government owned Domlec, the cost of fuel was very much less that US$100.00 per barrel of oil and the fuel surcharge was only a few cents, there was no 15% VAT. It should be noted that the 15% VAT was introduced in 2003 after the government requested assistance from the IMF and the custom surcharge on fuel was added. Also if government had owned it, there would be plenty of inefficacies, many will not pay their bills on time or don’t pay, and government just won’t pay, and see the amout due at the end of December 2013. Domlec will have cash inflow problems, unable to buy fuel on time, consumers facing regular power outages and very poor services. Check the Domlec financial statement for the figures. BTW, it is in government interest for Domlec to continue buying Petro Caribbe fuel. When oil is less then US$100.00 per barrel, the government only pays 60% up front and the other 40% is to be paid over 25 years Domlec pays the full cost of the fuel and the balance of the 40% is cash the government can use for it own agenda. Check the Domlec annual account since buying from Petro Caribbe and calculate the 40% amount to date. I would welcome your response and from others.

      MARKEY.

  11. dominican
    May 21, 2014

    if government take over it will die… they will kill the company they wudnt do any better… check the fuel prices it is the cause of the high electricitiy bills.. do your research

    • we bonjai
      May 22, 2014

      so let me ask you , if so how comes Domlec make so much in PROFITS???? is rob they robbing people , you cannot tell me Domlec making all that in profit alone and the government cannot see that electricity don,t need to be so high man

  12. comment
    May 21, 2014

    So why isnt domlec owned by d gov of dominica,,,dominican just s sick set of pple

    • Dominiquen
      May 22, 2014

      Domlec was sold by a UWP government!!! :mrgreen:

    • joe
      May 22, 2014

      Comment Domlec was owned by Government up until part of 1996 when the great and visionary UNITED WORKERS PARTY sold 72% to CDC.

      Their brilliance also had them legislate the agreement made with the sale to CDC which GUARANTEED CDC a 15% return on their investment, imagine that was law!!!!!

      Next time you meet the GENIUS Lennox the great Team Dominica leader ask him what is his thoughts on that, because according to them money was meeting money era… lmao!!!!

      One more thing let him show you his ‘Self Taught’ Certificate from the University of Idle Hall Estate, Macoucherie, Dominica… LMAO!!! LOOK JOKES WE, AND INTERNATIONAL AIRPORT WITHIN THE FIRST 3-4 YEARS OF HIS PRIME MINISTER SHIP, don’t ask how just know it will happen… How Long Not Long!!!!! lol

  13. Remove the VAT
    May 21, 2014

    We want cheaper everything: Electricity, Water, Phone, Cable, Food etc.

    • Simply the Truth
      May 21, 2014

      In everything, I try to be an optimist. This is to keep a positive view. In this case I will not be overwhelmed and weighed down by the cares of the world and my environment, taxes and increases.
      I do not blame you for wanting cheaper everything. The sophisticated word or a better word is “less expensive.” You are not alone. It is the same situation worldwide. Overall prices are increasing; income is not or very little; insufficient to meet higher costs and make ends meet.
      People are looking for less expensive means which will cut costs. As the saying, “everyone is feeling the pinch.” I do hope in time, less cost of electricity, to start with, for D/cans will be a reality. Patience in everything is required.
      As an afterthought, this is no reflection on the D/can government. However, government gives and takes. This is from my experience residing overseas. :) Those who do will no doubt echo it. One item is decreased another is increased. The same as I have also noted at especially the grocery stores.
      As the years progress, can we really win the fight against high taxes? Again, the saying, “We cannot win ’em all.” We simply have to make the most of what we have and do our utmost to be as thrifty (not cheap) :) as we possible could. This is to try and spend less on certain items.
      As for taxes, this is questionable and debatable. It appears taxes are here to stay. Will taxes ever be decreased or eliminated? The latter probably only when Our Lord Jesus Christ comes to reclaim his world. :lol: Therefore we have to brace ourselves for taxes and sometimes higher ones. The world is progressing.
      Countries cannot survive without paying taxes, income tax, property tax, goods and service tax and other taxes are necessary to keep the economy going. If only all able-people were employed and contribute their fair share of taxes, they could all assist to also decrease especially government taxes.
      Encourage the youth to remain in school and be diligent in their studies so that they could have a bright future with a good paying and stable job.
      It would be beneficial for the economy if more nationals were employed. It may be wishful thinking but it is worth considering and acting upon.

    • Mary Black
      May 22, 2014

      Without the VAT how could the country progress.
      How would US, UK and the other major countries manage out VAT.
      You all had it too easy for too long.

  14. $51K tax error
    May 21, 2014

    “Speaking on Kairi’s Heng Program prime minister, Roosevelt Skerrit, said that the country has not been able to take advantage of manufacturing to the extent that it would like to because of the exorbitant cost of electricity.”

    Help me out please somebody. Doesn’t the government have shares in DOMLEC? Was it not announced that DOMLEC had a profit of over $8 Million dollars last year? If so, and the manufacturing sector is handicapped because of high cost of electricity, why does the government not use its influence to press upon DOMLEC the need to take a profit cut in the best interest of Dominica so that manufacturers become more productive? What if geothermal does not go through? Makes no sense to me.

    • Simply the Truth
      May 21, 2014

      May I inform you I reside in a country where the government owns Hydro and electricity is high. I heard where some customers who reside out of the city were overcharged. Their bill was outrageous in thousands of dollars. Can you imagine that? This has to do with their meters; a glitch I suppose. :) I hope by now they received a credit.
      One family said they had to borrow money to pay their electricity although the husband has more than one job. The error of exorbitant billings was with Hydro.
      Hydro had the nerve to threaten disconnection of their electricity service.
      Due to the high cost, a family decided to cut their electricity and remain without for months. Imagine in winter not having electricity. People have it hard overseas.
      Home owners of every sort are advised to conserve energy and to use electricity during non-peak periods. Just informing you that you are not alone even though not in the same country.
      Do not keep the pipe water flowing when it is not necessary. This could conserve a bit of electricity and water. Turn lights off when not needed. I read that computers do use up a lot of electricity.
      DOMLEC should have this system and advise customers accordingly. They probably have not been keeping customers informed (or so I think) about conserving energy which they could pass on to customers which will assist them to cut the cost of electricity usage.

  15. carlpuss
    May 21, 2014

    But excuse me pm correct me if I m wrong but I clearly remember u and regie saying that’s why we brought in petroleum carib dominicans does forget Waw,,,,

    • Ras
      May 21, 2014

      same thing I saying. everybody forget petro caribbe was suppose to give us cheaper electricity

    • Falcon
      May 21, 2014

      goes to show how much more the cost of electricity would have been without petroCarib.

  16. Michael Joseph
    May 21, 2014

    What do you expect from …..The pressure is on the fulfill the Promises made…….Have we explored, Wind, Water, or Solar? …… I guess it is too late for that now!!!!! …….let’s go…..”Geothermal…all the Way!!!…..It’s the most cost effect and viable option!!…LOL……..Nonetheless, the sad truth about the whole matter is that whichever way you look at it, the biggest beneficiary of these high rates is…….THE GOVERNMENT OF DOMINICA….Why???? Just ask them how much, “VAT, INCOME-TAX, CORPORATE TAX, IMPORT DUTY,ENVIRONMENTAL SURCHARGE, CUSTOMS SERVICE CHARGE, and EXCISE TAX….they have collected from DOMLEC…..”Stop crying WOLF” when you are enjoying and have directly contributed to the high rates….Thank God you are getting or will get 30% in Corporate tax from the over Eight million dollars Domlec made this year…..”GO CRY WOLF”…..is not me u “FOOling”……….

    The pressure is on…….”Am for Geothermal too……my bill to high…..lol..

    Excise Tax

    • Falcon
      May 21, 2014

      I thought we had explored water and are seeing the outcome. As for wind, the output of that is limited and should only be used as a support system. Sun is still too costly-O!

  17. 4u2C
    May 21, 2014

    Agreed! It is ONE of the best ways to generate cheaper electricity but NOT at the cost of destroying human lives. There are other options which are less dangerous and even more cost effective. Lets use Solar, wind, and Hydro. All these are possible options but SKerrro refuse to look that way. Ye we have geothermal potential and yes we have the potential to wipe out the population and plants too. Lets be broad in our thinking and stop seeing light through a key hole. Skerro is bent over backwards geothermal is the answer but he would not drill behind his villas and his $4 million house in Vielle case. The guy is so narrow minded he don’t even see danger. What about Petro Cribe, we were suppose to get cheaper gas, what happened? What will be the excuse for high cost of energy if the geothermal should work? These guys think backwards or in the reverse. Night landing is another example. We have it but visitors a fewer and the primary Healthcare in the area is closed. What if LIAT burst a tire and run on ground? We have a state palace $27 Million, how many folks employed at the palace? How much it cost on electricity to maintain that place? Does it have solar panels at least to reduce the cost on tax payers? Skerrit have to go, his thoughts synch with 1414 minds, way before Columbus. This is slave mentality, say things that sound nice but does not add up. PRIMITIVE!!

  18. Free Thinker
    May 21, 2014

    I agree that the price of fuel is crippling to all except Domlec with their M$8 profit last financial yearr. We must look at alternatives even while waiting on geothermal, how about solar power and wind power? We need to look at the feasibility of the other sources and best practices. there is a wind farm in the south of Martinique, could we look into that?
    I would like to see the manufacturing sector experience less expensive energy costs so that more jobs could be created, but I am very concerned about the risks involved in geothermal exploration; we cannot ignore them.

  19. real possie
    May 21, 2014

    Mr. Bonaire please don’t say that word Geothermal is a bad word to some people it will let some people look bad at the polls so they don’t want it well not till they get elected.

  20. Mamizoo
    May 21, 2014

    There is solar and wind. Had we gone into solar we would have been well on our way to huge savings.
    Whst about a recycling water plant to generate enough head to power turbines. That in combination with or water. Investment in dams could also help create that energy .
    Some turbines located on the Atlantic side could help power up a number of grids.
    Si far or according to the government we have alrea Dr y spent $60 million on the geothermal venture may be ir is time t ok cut and run to other less risky and more reliable alternatives. Hey we dumped millions of dollars for a stadium project why cant we dump $60 million to protect life and property

  21. opionated
    May 21, 2014

    OH PLEASE! The government suggested that with the introduction of Pertro Caribe to Dominica that the price of electricity would have decreased significantly, considering that the fuel purchased to create electricity would have become considerably cheaper to DOMLEC. However, this has not been the case.

    They claim that the introduction of geothermal electricity will decrease the current rate but I doubt this highly!!

    This monopoly that DOMLEC has has set the stage for the price of electricity in Dominica and any competitor is going to be guided by that price. Over 8 million dollars in profit in one year, is remarkable, and though DOMLEC claims that this huge profit did not come from customers but from ‘cutting back’; I believe that that this is just an extravagant lie which attempts to veil the eyes of the customers.

  22. Anonymous
    May 21, 2014

    A barrel of fuel is not $110.

    He is quoting the price of Brent or West Texas Intermediate crude oil at $110. There are many other grades of crude that are discounted from WTI and Brent.

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