YOUTH EXPRESSION: IRC Winning Essay by Deniane John

Dominica News Online (DNO) recently reported that home-schooled student and the top island scholar at the 2012 GCE A Level Exams, Deniane John had won The Independent Regulatory Commission (IRC) first Student Essay Competition, held to commemorate its 5th Anniversary.

This year’s competition required high-school and college students to: ‘Explain why it is important to establish an Independent Regulatory Commission to oversee and regulate the electricity sector in Dominica and how this is of benefit to electricity consumers’.

Denzel Guye from the Dominica State College emerged second and Nickel Cuffy placed third.

A total of 20 essays were submitted, representing seven schools across the island.

The following is the winning essay written by Deniane John.

‘Explain why it is important to establish an Independent Regulatory Commission to oversee and regulate the electricity sector in Dominica and how this is of benefit to electricity consumers’ 

In 1949, the Colonial Development Corporation, through the formation of Dominica Electricity Company Ltd. (DOMLEC), began the electrifying process of giving light to the island nation of Dominica(1). Since then we have seen numerous changes in our still fledgling electricity sector. In 2006 the Electricity Supply Act was enacted, coming into effect on March 1st 2007(2). This liberalized the electricity sector in Dominica. By this Act of Parliament gone are the days of a self regulating monopoly charged with the dual responsibility of deciding its own best interest and that also of the consumer. Certainly, liberalization has introduced a new dynamic into the operating environment for power generation. The expected increase in the number of potential stakeholders in energy generation makes the need for independent oversight inescapably apparent. In my view, even with an energy monopoly, the establishment of an Independent Regulatory Commission (IRC) is a desirable innovation to supervise and advocate consumer interest through regulation of the energy sector.

As they say, the bottom line is money. An IRC is fundamental in ensuring the public accrues whatever savings they may be entitled to. Crude oil prices per barrel have skyrocketed from an average $2.51 USD in 1950 to an average of $95.73 USD in 2011 (3). The volatility of petroleum product prices further emphasizes the types of matters which require a professional body to advance the public’s interest, wherever possible. In October 2011 the U.S domestic purchase price was $92.28 USD, in November it had risen to $100.18 USD, followed by $98.71 USD in December (4). Consumers are definitely feeling the financial vise as Dominica’s energy production is largely fossil fuel based; approximately 65% is currently estimated to be generated in this manner (5). With an IRC, consumers in both public and private sectors are made aware of vital information; e.g. the fuel surcharge increase from $0.4006 per kWh in January 2012 to $0.5309 per kWh in April 2012 (6). This enables prudent fiscal planning by energy consumers. Information like this is critical, for example, to the Dominica Hotel and Tourism Association (DHTA), as recent local headlines suggest. The need for an independent regulatory body at a time when the sole power company experiences record profits is critical to ensure transparency.

The public needs to be satisfied that minimum efficiency goals are defined and adhered to in the delivery of the electricity product. We can hope that through regulation and oversight by an Independent Regulatory Commission, the favorable fuel prices extended by Petro Caribe to DOMLEC are similarly passed on — to some extent — to the consumer. Unequivocally, an IRC fulfills a necessary role in representing the public’s financial interest.