For a second year the island’s sole electricity company, DOMLEC, is reporting over $8-million in profits.
However, the company’s general manager was quick to point out that profit was based on ‘tightening internal processes’ and not on raising the price of electricity for consumers.
“The price of electricity went down last year, about 2012, so the fact that we made more profit is not because the price of electricity went up, because the filter charge was less, and so we actually got less money from the public,” he told state-owned DBS Radio.
For the current financial year, DOMLEC raked in $8.7-million in profits as compared to $8.2-million in the last financial year.
Cover further pointed out that the company paid less interest, up to half a million dollars, to the bank in 2012-2013 as opposed to the last financial year.
“If you’re paying half a million less in terms of the banking interest that money is money that you keep in the company so it’s not money that you get from the public,” he said. “So whatever gains we have made financially this year, we made less money from the public but we were able to do a number of things internally to sort of tighten up what we do internally.”
At present, costumers 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.
Presently DOMLEC serves some 34,000 customers on the island.
As i read the comments, I see that some customers are paying $100 a week.That’s crazy.I could understand if you growing indoor weed or having a business that required a lot of electricity .But a residential home that’s just crazy only in D/A that nonsense can happen.They should have competition.Praying for my Dominica.
I wonder why the Manager is spending so much time ,energy and focus to convince us that the profit is not coming from the consumer?Almost seems as if He is suffering from some type of guilt!.As if to say “We are raking it in from the vulnerable poor we better convince them the profits are coming from internal wrangling rather than You poor consumers
what makes you think we can be fool .loans and other things make us make a good profit what is that so until next year
This article was written to incite negative feeling toward Domlec.
“At present, costumers 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.”
Don’t like this at all. Present information unbiasedly!
So Domlec has to rub it in our face? Well tell them labourites that saying “Labourrrrrrrr” tell them take that in their
Then again some of them don’t even pay a bill they just a leach from their mum, dad, baby daddy or the red clinic it self.
I can’t believe the government isn’t doing anything to assist it’s own in this hard country. soon i gone. awa man
yeah they can boast.after they finish plimmay us with high electricity bills they can boast of their millions in profit.wickeddd!!!!!
PS. Don’t forget that the Dominica Social Security Service as a 21% shareholder would be entitled to more than $1.8 million of these profits, badly needed to replenish their depleting coffers.
When the Freedom Party bought Domlec,it was bought you the people of Dominica.The chairman and all the board members, almost all if not all the ordinary shares holders were all Dominicans. including the general manager.I can remember hearing Miss Charles on DBS radio encouraging the workers (not UWP,or 4 a better word, the employees) at Domlec to buy shares,She said.
“This is your company,even if you do not have the dry cash at hand.You can still buy shares and as you are working it can be deducted little by little from your salaries.”
Friends, you call this “a leader with a vision.”Not like Eddie/Timotheus who sold the company .And Perro/Skewo who could purchased it and put it where it rightly belongs.In the hands of we the citizens of D/A.
Now we are complaining,but a profit of $8.7 million almost every cent would remain on the island.Our leader could get a big loan to build a house for president.Not that I am totally against the move, but I believe Domlec is a better asset.Twice the DLP had the opportunity to buy back Domlec.
You cannot eat you cake and still have it.
We had a choice.
“Even if you do not have the cash
Domlec steals another 8 million dollars from poor people.weh we weh. Time for change!!!! All the young people register too vote for change. Labour can never win this general election
workersssssssssssssssssssssss!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Team for the jobs!!!!!! Call it nor 
U forget is workerrrrrrrrrrrrrrrrrrrrrs that sell domelec and put us in the mess.lol
It wasnt this set of workers
It is shameful and very disgraceful that the UWP sold a national company (which DAME EUGENIA of the DFP fort hard for) to a foreiginn entity.Did they not visualise they were taking DOMINICA down the drain.
The mastermind of the uwp sale not a big layba minister sacway sot
You are right, Mr. Timothy was the architect of that. May that why Skerrit hired him?
I understand your frustration Dominica. When they call a demonstration against this Money monster I encourage many or most of you, all of you to show up. This cannot keep going on. IRC should recommend Domlec be sold to the Government who should actively look for the funding, then can in turn pass some of these million dollar profits on to consumers, especially businesses and the poor.
After all, electricity is an essential part of life in Dominica, we should benefit from these profits and not be bleeding to pay a light bill. Domlec has brought darkness on to Dominica. We used to be able to have an outside light on, now most of the same households can’t afford to do so. Roseau at night is relatively dark, the villages are dark, people can’t afford Domlec’s rates to keep a light on outside their homes even for their own safety. Sad indeed.
The IRC would never do that because they are part of Govt., funded by Govt. If DOMLEC were to be Govt. owned there would not be a need for the IRC. Do you really think those people are going to talk themselves out of a job?
So when they pass on the millions to customers and later there are all kinds of outages, you will be the first one to complain.
Do you really believe a company that does not return a profit can survive for very long?
When the gov’t owned it before it was sold they did just that which this private company can’t do: Made profit, pass some to consumers, utilized more hydro…and we were able to pay light bills without going broke. Have youseen Domlec’s office? It’s the same since inception in the 1960’s, no improvements what so ever, not even to the grid.
At least Domlec, Please, Please, Please use some of that profit to improve your customer experience. I still have to follow a ridiculous line at one single location in Roseau to pay my bill, and the place gets so crowded and hot, not even a good AC you can put there to make people feel special? Poor customers have to stay there sweating and smelling each other. Not a proper sign outside, and the path to get there not even safe for people to walk. Even people who have to pay for their own electricity invest more in making their place comfortable. Look at the LIME and Digi Store, the new Burtons, and so many other pleasant places to shop in Roseau.
I was looking on the internet and we have the second highest electricity costs in the whole Caribbean, just a fraction cheaper than Antigua’s. But all Antigua’s electricity is generated from diesel. Here in DA 40% is from hydro (and could be a lot more if they’d maintain the hydro plants properly, but that’s another story), which is almost free to produce. So our electricity should be far, far cheaper. DA’s electricity consumers are definitely being ripped off.
You are correct but forgot to mention that in Antigua & Barbuda the basic charge for electricity is not subject to their version of our VAT (the ABST or Antigua and Barbuda Sales Tax), whereas our “yes we care” Govt. charges 15%.
it has been proven that government run companies never make profits and these companies are never develop very good examples the companies which are owned by foreigner’s in Cuba make profit whereas the government own companies do not make profits the same as Venezuela .
I’m not against a company making a profit but a small nation of about 34000 customers, $8.7 million in profit is totally too high.
The manager said that we are paying appr. $1.16 per kilowatt hour for electricity , this has proven to be amongst the highest in the Caribbean. What is he doing about it.
He could distribute a little of that profit among the share holders and the customers on island. Now if we had no hydro to assist us ,what would be the outcome?
That company should have remained in Dominica’s hands. Selling it was a mistake.
I live alone, I am on the AMI meter system, it costs me $100 every 8 days, voley !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
UWP that sold Domlec. dem man run d country brokes and now they want to come back. never i say, have me paying so much for elec and than say is d PM that have d country so.
@Anonymous Yes WE. And this lazy,incompetent, WICKED and heartless Labour Party got the chance to repurchase it at least twice, and did not do so . So the poor Labouritse most times have to use candle or grovel to the ‘Red Clinic to beg Skerrit for money to pay their electricity bill.
THAT’S WHY CHANGE IS A MUST!
labour had an oppertunity to buy it back. what did they do? the still allow foreigners to buy it..i would like to add workers sold it for some 25 million dollars, it was then sold by cdc in the region of 11 million dollars….labour drop the ball big time to let a deal of a life time pass them by..they failed . vote them out
Timothy was the master-mind behing the sale of Domlec. Now Skerrit has him in his Kabalnet. Skerrit said he would have put Domlec vack in the hands of Dominica, but instead he sold tto a foreign company. So you mean, Labour stupid.
And mark you, when Timothy did his thing, the clear thinking Lennox was president of DAIC, and was dead against that.
Sherrit had the opportunity to re purchase twice it went to S S & WLRB now to a bajan company , none not better than the other, you must also remember that it was Julius timothy that was the Minister of Finance in the U W P Government, labour has now embraced him and Domlec sale goes hay wire, but not to be owned by Dominicans says Julie t.
Nonsense, is Govt. that is making 15% vat on top of DOMLEC sales. Is Govt. that is making profit on fuel sold to DOMLEC through their oil company Dominica National Petroleum and making electricity expensive. On top of that they put IRC on our back that is finance by Govt. at more than $1 million a year and on top of that DOMLEC have to pay company tax to Govt. on their profit. The benefit of cheap Petrocaribe diesel was suppose to come direct to the people and lower our electricity bills. Go and ask Austrie, who was appointed chief of that company.
Bro, profits are declared after expenditure is taken care of. That’s what goes into the investors’ pocket, if they choose to or they could re-invest a portion. That’s in addition to their huge salaries as CEO, CFO, Chairman, Vice President of this and that, Senior Officer of this and that, etc.
If government makes 15% VAT, it is used for 100% of the population in terms of schools, hospitals, road maintenance, police and security, etc. DOMLEC uses our roads, ports and water resource. Why shouldn’t the government tax them? Should the most profitable company be tax free?
Right now DOMLEC IS a private company BUT the Government own more than HALF the shares of the company… In any other country that would mean that the Government own Domlec but not in D\a. Since the governmet owns majority of the company they bascially control the company. Which makes your statement invalid.
You are misinformed.
In April of last year LHP of Barbados acquired a 52% interest in Domlec from WRB Enterprises Inc. of Tampa (Florida). The Dominica Social Security owns 21% and the remaining 7% is by other investors. At the time of the take-over by LHP, Domlec served some 36.000 customers.
(See LHP’s press release of 10 April, 2013, published by DNO)
Rubbish. Check this link out
https://dominicanewsonline.com/news/homepage/news/business/new-domlec-owners-promise-cheaper-electricity/
Recently it was announced that Light & Power Holdings Ltd. (LPH) of Barbados has acquired a 52 percent interest in DOMLEC from WRB Enterprises Inc. (WRB) of Tampa, Florida.
aI share the view the Amy and I am paying like $100 a week
that is where they made all the profit a total reap off on the back of the people of Dominica some thing needs to be done
The regulatory committee is not doing nothing for us all they do is get a salary while electricity bills get sky high
can some body tell me what have they regulate and who did it profit us I am really feed up with domlec .
Try to conserve energy as using relevant light bulbs and other domestic systems used for cooking, baking, etc. Many people are now doing that. This is, if you do not own a business. Even then it could be done.
DOMLEC should assist its consumers in this regard and provide such brochures to educate them on how they could conserve energy at a low cost to them.
It is said that computers and TV also use a lot of electricity. Lights should be turned off when not in use.
Today they have given us a lot more as microwave, toaster- ovens, kettle and toasters to mention a few than our ancestors enjoyed but we have to pay for it and at higher costs.
You could access relevant information on the Internet.
You vex because Domlec made $8.7 million in profit.? Put the blame where it belongs-At the feet of UWP and it’s first cousin DLP.We must remember that DFP bought it from CDC (a foreign company) As UWP came in office,Timothy,Earl and Eddie gave it back to CDC.
Before the 2000 election, DLP promised : “If we form the government we will buy it and put it back in the hands of Dominicans.”
They had the opportunity twice to fulfill their promise, instead they allowed it to go back into the hands of foreigners.
Anyway, give Jack his jacket, when UWP sold it to CDC, Lenox Linton was against the sale because he was the president of the DAIC.I am happy they made the profit, because as a share holder, I will get my share.
@J J John Charles It was up for sales again why didn’t the Labour Party buy it? Were you living in Mars at the time?. Ask people who were living on earth at the time.
That’s what u think, they are going to pay the same minimal rates to its share holders
@JJ, Shareholders like you should speak up because you pay your dividends right back to the Domlec Monster.
Shareholders should be the first to demonstrate their displeasure with domlec. Their dividents are not worth anything when domlec takes it all back in high electricity rates that you pay monthly. Where’s your investment?? It’s sad that the company eats it all back up.
What about VAT? The more DOMLEC profits the more government profits. We should follow the example of St Lucia.
http://www.stlucianewsonline.com/prime-minister-vat-on-utilities-can-help-but-economy-is-too-fragile/
Just a bunch of lies, this guy has the nerve to say that the increase in profit is not from raising the price on consumers, well I would love to see a hibernating bear get fatter during the winter by living off its own fat. I have Amy and every 3 or 4 days I have to put 50 or so dollars, and I don’t even own a tv, just a small house with normal appliances, fridge, washing machine, computer, all bulbs energy saving. They are a total rip off, this Amy is faulty, it over charges consumers and we silently bear this burden. Let’s stand up my people, make this company national, it should be about good reliable, affordable service and not a bunch of profits in the big fat guns pockets. Magway sah!
domlec if u saying u did not raise the price of electricity on consumers and u walk away with $8-million in profits ,if u had raise it u would walk away with 16-million ,and i belive 4-million of that money came from the Amy meter, u are a rip off when it comes to that meter high time u guys look into it ,
yes Domlec rub it in people face! all you always quick to disconnect before people miss a payment but at the end of the year you boasting of millions in profit. well give us at least a 5% discount noh
What are we Dominicans getting from this when all this is going to a Barbabian base company.
Why does DOMLEC have to defend a profit of EC $8 million?
Their mandate should be to deliver reliable service AT A RESONABLE PRICE.
I am totally not concerned about the profitability of the company provided they achieve their mandate and maintain their equipment to ensure reliability of service.
I would much prefer a profitable company than one where there are frequent outages due to a lack of proper maintenance.
You should be concerned about the profitability of Domlec. Domlec sells an essential service. Consumers can’t decide to choose other substitutes easily. Some of us are a captive base. We must use Domlec. If Domlec is operating at a point where their prices result in excessively high profits then this should be a point of major concern. You need to inform yourself on what the rate base is for Domlec is, what the accepted rate of return on that investment and determine if prices are set properly. The IRC is in a good position to answer these questions.
We don’t need IRC, we need electricity free of VAT. After all, it is not a luxury but an essential or does Govt. want us to go back to bouzay flambo and twa roche?
If Domlec has 34 000 customers, that means that 34 000 houses have electricity. This would further mean that there are at least 34 000 households in Dominica. Obviously there are businesses included in this 34000, (however we must also realize that there are a large number of households with no electricity which can make up for the businesses counted as households.)
So lets say that this 34000 customers were households with an average of 3 people per household, that would make the population under this hypothesis 102 000….
Is the census really reliable? is our population closer to 100 000 than 70 000?
what an assumption would not want you to run my business nah pal.
is that negative or positive intellect? sounding intellectual challenged to me
I think it is the other way round and that Domlec have fewer than 34,000 metered customers. So why do we need an expensive regulatory commission to oversee that. Is we that are paying for that commission. I think that is a screen put up by Govt. to make us believe they are helping to reduce our bills but that is making it more expensive because we have to pay the IRC through our taxes. Ridiculous.
They have to make profit, and exactly why we mean NATIONALIZE THAT BEAST. It is profitable to do so. Buy it back, it will pay for itself in reasonable time. I do hope this China trip includes discussion on buying Domlec Back, to MAKE money for Dominica.
Do you really think Govt. knows how to run a business? Look a the Stadium ( a private company would make that profitable), the Moroccan hotel, the coffee plant, the abattoir. I don’t know of any Govt. that run a commercial business properly, Dominica included.
You only have to look at Venezuela, recently ranked as the most miserable country to live in, to realise that.
Governments can run business. Look at Dowasco. Governments have to many other social considerations.
At present, costumers 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.
That is a shame with 365 rivers we are able to produce more hydro electricity.
A little more illumination (pun intended) on the numbers would add a little more light to the story. As to the $8.6 million in profits, how much of a return on investment does that represent? And what is Domlec’s cost of capital? Until we know what these metrics are it is possible to determine the magnitude of these profits—Are they reasonable or obscene?
what are they giving back to their customers apart from sponsoring a queen or giving school scholarship? NOTHING