The Dominica Electricity Services Ltd (DOMLEC) has now been placed in a better position to serve the general public after receiving two new licenses from the Independent Regulatory Commission (IRC) on Monday 7th October, 2013.
Both licenses are for 25 years and were handed over to the company at the Fort Young Hotel.
The Generation License authorizes the utility company with the non exclusive right and privilege within Dominica to generate from all sources for supply to their network, while 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.
Lancelot McCaskey, Executive Director of the IRC, revealed that both licenses posses key features that are common.
“Both licenses are for 25 years, they are to commence on January 1st, 2014. We also made arrangements for the assignment or transfer of license. That was not around before, so we put in a set of specific procedures regarding any intention by the Licensee to assign or transfer the license,” he explained during the handing over ceremony.
Other key features of both licenses include the transfer of shares of the licensee, reconsideration and appeal of commission decisions and transitional arrangements.
Also speaking at the ceremony was Minister for Public Works, Energy and Ports, Rayburn Blackmoore who said that there is a need for the government and DOMLEC to work together, especially in the area geothermal energy.
“Notwithstanding the fact that we have taken a policy decision as a government that the small plant that we are going to construct for you the people of Dominica in 2015 is going to be owned mainly by the state,” he said. “But we have to understand, as we illustrate today by issuing those licenses, the infrastructure that is required to transmit and to generate is owned by DOMLEC and it seems to me therefore that we must be engaged in some constructive dialogue with DOMLEC.”
Member of the DOMLEC Board of Directors, Grayson Steadman, added that the handing over of the licenses is a result of hard work over the years.
“We are now much better positioned to respond to the demands of the rapidly evolving energy sector on the island. We are now much better positioned to meet the needs of our consumers here in Dominica now and for the many years to come,” he said.
DOMLEC is the sole electric utility for Dominica, serving 34,000 customers.
Earlier this year it was announced that Light & Power Holdings Ltd. (LPH) of Barbados had acquired a 52 percent interest in DOMLEC from WRB Enterprises Inc. (WRB) of Tampa, Florida.
Twenty one percent of the company is held by the Dominica Social Security Scheme and the remainder by other investors.
George Santayana said, “Those who forget history is destined to repeat it”. The issuing of the two 25 year licenses to DOMLEC is the biggest mistake ever inflicted on the energy sector in Dominica after the sale of the company back to CDC by the UWP administration. These recent decisions reflect the absence of any business sense and a lack of sensitivity to the needs of our country and the plight of our people.
In short order, all will see the huge error in these decisions. The only unfortunate thing is that the people of Dominica will suffer even more than they are suffering currently, while foreigners cream the little that should go to improving the lives of our people in Dominica.
May God have mercy on Dominica and Dominicans… But some one will account. Time is the healer of all wounds.
Peter Azille, Sr.
Financial Services & HR Management Consultant
Atl, GA, USA
Al this is saying is that when geothermal gets operational domlec will buy the electricity put their mark up and distribute to us. Now they have an exclusive tight to distribute which mean they could mace their mark high if they want.. not good but we all new this already as was mention on previous threads that domlec on the poles and the lines, meters etc. This tells me that in the recent sale of the majority shares the government knowing gull well of the situation should have bought those shares before this new barbados company. That way we would benefit more from geothermal initiative. Then again where there is no vision the people shall perish.
all i can say since the govt cant give me lights
best i turn off all their lights.
how much longer before someone pays for this bull?
i have one life to live and the idiots that want power selling the country and its people to the highest bidder.
country getting too small for all this bull, no where to hide from an angry citizen.
then again a shovel is need ed to bury the we have been feed for years.
damn labour lol
Are these licences two different licences authorising different activity? If no, why 2 25 year licences and not one 50 year? Are these licences to run concurrently?
Oops! My question was answered by the article.
The problem with this is that the non exclusive right and privilege element of the contract, which relates to the generation or production of energy, is advertently restricted by the exclusive right element of the agreement, the Transmission, Distribution and Supply License? So how does anyone else produce or generate electricity to compete with DOMLEC when only DOMLEC has the right to Transmission, Distribution and Supply License? Meaning more than one player can engage in the generation and production of electricity in Dominica including the government. However, DOMLEC’s “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”, you will agree is a monopoly. Even the government when it begins to produce geothermal electricity will need DOMLEC’s exclusive infrastructure. Why would DOMLEC share its exclusive infrastructure with any other company only to give it DOMLEc competition? Now that is the million dollars question that I want answered. Because therein lies the complete and total monopoly! Welcome to Business Law 101, and it’s all free for you my fellow Dominicans who allow your government to think you are fools and therefore treat you like fools!
Is this a sign that the government has hit a brick wall on the geothermal project and now has to run back to DOMLEC to help them produce and transmit the geothermal electricity? The same DOMLEC whom we all thought would have been made redundant by our national geothermal electricity project is today being declared a partner by this contract! Yes, they say if you live long enough you get to see all sorts of strange occurrences, and to think that I am still young!
Geez! Why do we pay skerrit salary? Performance is mediocre!
god help da.how huch did it cost domlec.
I think just like Dominicans protested against Charles Savarin and Alix Boyd Knight, it is time to protest against the regulatory commission and the labour government that is bent on destroying the country.
Once again we the people of this country are being shafted by government.First it was UWP and now LABOUR(DLP).Why give the new majority owners of Domlec a monopoly both in generation and transmission of electricity? My god haven’t our leaders learned from what CDC did to us after UWP sold our locally owned Domlec to them? We were properly shafted.We’re still paying the price for these so called intelligent men/women’s actions.Why do we keep repeating the same damned mistakes that others before us have made? Haven’t these clowns any brains left? Don’t they realize that the extremely high prices of electicity is an impediment(set back)to our economic and social development? Are these a-heads even aware that these kinds of licenses are a threat to our national security? Why should our children perish because their parents can’t keep the fridge on and their medicines cannot be kept chilled?
Do these knuckleheads even care? Who looks out for the average man/woman’s wellbeing? Why should licenses be transferable? Here comes the guys who own Barbados light and power to grab as much as they can and be able as per their licenses to transfer their lincenses to their subsidiaries to continue to rip-off the Domincan people all with the blessings of our elected leaders.Who is really looking out for you, me and the rest of the country? Before anyone insult me politically let me just say i’m non-aligned.All of them is the same kommess.I am fed up with all the political jackness that’s taking place in this beloved country of ours.
My last sentence should read “I am fed up with all the political jackassness that’s taking place in this beloved country of ours”.
Help me out here please ! “The Generation License authorizes the utility company with the non exclusive right and privilege within Dominica to generate from all sources” that does not sound like a monopoly to me but then again I do not have a university degree
read the story again. the genaration licence gives DOMLEC the NON EXCLUSIVE right to generate electricity.
Laba pawer!!!
while the Transmission, Distribution and Supply License gives DOMLEC the EXCLUSIVE RIGHTS and privilege to transmit,……..”SOUNDS LIKE A MONOPOLY TO ME”……..NO PROVISIONAL CLAUSE FOR THE FUTURE”…..HOPEFULLY WE SHALL SEE SOME NEW PLAYERS AFTER 25 YEARS IN THIS FACET OF THE OPERATIONS………
While competition can be a good thing in this instance it may be very unwise to have numerous companies . I don’t believe that Dominica can sustain more than one distribution company. The gains from com
The gains from competition will be severely eroded as each company tries to be profitable in such a small market and would result in higher prices, in the end we will still end up with a monopoly. My problem is with the fact that we do not own the company or even have majority interest. There is still the opportunity for others to get involved in the generation side, with that power then being sold to the distribution company. What is then necessary is to have a strong mechanism in place to regulate the price to the consumer. That’s just a layman’s view so doh be biting my head off.
papamet READ!! the article said NON EXCLUSIVE right and privilege to operate in Dominica
Enjoy astronomical electricity prices for another quarter century!
Y Anthony? Geothermal will bring down the cost of electricity by half!!!
Stop the negativity man.
Admin. why are you blocking my comments?
Dominicans just got f…. for the next 25 years. Welcome to another monopoly that will enslave households, businesses and progress on the island. Great going guys! I could not have done it better myself.
smh I thought they would have changed that by now “exclusive” right to supply energy within Dominica… Without competition in the energy sector we’re doomed. 25 more years of high electricity bills. Lord please have mercy upon us
let the fleecing of us in Dca begin….. is now we going get our highest prices!!! what a ting e… 25 years…. well well well……wickedness
those guys dare on all boards. is that how they live? gosh
Is this going to be 25 years of hard labour for the population or 25 years of record profits for Domilec, either way we the consumers are on the loosing end. Hope solar power kicks off here and work really good.
moe fire
more money off our backs,hope DOMLEC take time out to fix Amy because this meter its a rip off !!!!!!!!!!!!!!!
u can say that again
Enjoy your high prices for electricity … your should have opened up the process for more companies to compete for who can provide the cheapest electricity prices.
Read and understand John Doe From The US, I will reprint the appropriate section in the article:
“The Generation License authorizes the utility company with the non exclusive right and privilege within Dominica to generate from all sources for supply to their network, while 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.”
It is open for competition so come with your US Firm…..
Joe, let my legal mind break this down for you. You failed to observe that the non exclusive right and privilege element of the contract, which relates to the generation or production of energy, is advertently restricted by the exclusive right element of the agreement, the Transmission, Distribution and Supply License? So how does anyone else produce or generate electricity to compete with DOMLEC when only DOMLEC has the right to Transmission, Distribution and Supply License? Meaning more than one player can engage in the generation and production of electricity in Dominica: “The Generation License authorizes the utility company with the non exclusive right and privilege within Dominica to generate from all sources for supply to their network…” This is an important clause which acknowledges that the government too can produce electricity through its geothermal plants. So more than one company may be granted a license to produce electricity in Dominica. But it does not mean that the government has to grant more players a licence. So when you told John Doe from the US, “It is open for competition so come with your US Firm….” this is misleading as it does not mean that the government must issue him a production licence to generate electricity, he can still be denied a licence. Second part of the agreement, “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”, you will agree is a monopoly. The government goes so far as to say that even the government when it begins to produce geothermal electricity will need DOMLEC’s exclusive infrastructure. So again even if John Doe from the US or anyone else for that matter got a license to produce and generate electricity in Dominica, why would DOMLEC then share its exclusive infrastructure with them only to give it DOMLEc competition? Now that is the million dollars question that I want answered. Because therein lies the complete and total monopoly! So Joe, welcome to Business Law 101, and it’s all free for you my fellow Dominicans who allow your government to think you are fools and therefore treat you like fools!
Dominicans just got f…. with this new monopoly-agreement. Welcome to zero choice with your electricity provider and the rates that you’re charged per kilowatt hour.
That makes no sense. In this day and age?
QUESTIONS: Do any of these IRC issued licenses address DOMLECs Pay as U Go service and the problem of Pay as U Go customers currently being charged a monthly fee on this – a prepaid service? I trust that issue was addressed and resolved. i.e that monthly charge was removed.