Dominica’s sole electricity supplier, Dominica Electricity Services Ltd (DOMLEC), will be expected to present to the Independent Regulatory Commission (IRC), a timetable for the filing of an application for a rate review, within seven days of the commencement date of its two new licenses.
DOMLEC received the new licenses from the IRC at a handing over ceremony on Monday morning.
The licenses, which are for the generation of electricity in Dominica, and the transmission, distribution and supply of electricity are for 25 years each.
Executive Director of the IRC Lancelot McCaskey stated “DOMLEC is constrained within 7 days of the start of the licenses to advise the commission of the process it will take to have a rate review that must begin not more than nine months after the start of the licenses, which means that if the licenses start on January 1st, then sometime by September, we should begin with a rate review.”
According to McCaskey, there has not been a rate review of DOMLEC since the IRC came into existence in 2007 and he said the commission believes that it is necessary.
The Generation License authorizes and gives DOMLEC the non exclusive right and privilege within Dominica, to generate electricity from all sources, for supply to their network.
On the other hand, the Transmission, Distribution and Supply License gives DOMLEC the exclusive right and privilege to transmit, distribute and supply electricity for sale to the public in Dominica as well as to operate, construct, reconstruct and modify or replace the transmission facilities.
At present, consumers in Dominica are paying approximately $1.16 per kilowatt hour for electricity. This has been proven to be amongst the highest in the Caribbean region.