WHILE residents appreciate the fact that Trinidad and Tobago’s Electricity rates are the lowest in the Caribbean and one of the lowest in the world, and that the Trinidad and Tobago Electricity Commission (TTEC) is currently trying to upgrade its operations and is carrying out development works in order to provide a better quality and a more expanded service, a disgruntle employee of the commission told TnT Mirror: “I categorically disagree with the rate increase.”

Another employee said: “The carefree, wanton and irresponsible spending by the Board and the executive is atrocious and is responsible for the cash flow problems at TTEC.

“In addition, the financial arrangement with PowerGen from the divestment continues to haunt TTEC.”

Many of TTEC’s development works are paid for by private concerns, funded through the regional corporations and other governmental interventions, Mirror was told.

“So why the increase?” some consumers asked.

The Regulated Industries Commission (RIC) is an independent statutory authority established on June 1, 2000, to regulate the electricity and water sectors in TnT.

RIC is mandated, among other things, to set price limits every five years to enable well-managed service providers to finance the delivery of services in line with established standards and requirements, provide incentives for service providers and to improve efficiency and service delivery, and protect the interest of consumers.

This review of electricity rates is the first evaluation of electricity prices by the RIC and provides an opportunity for customers and all other stakeholders to have direct input into the process of determining electricity prices.

Electricity pricing is important to ensure that current future resources are managed in a sustainable way and that TTEC maintains a high level of service and delivers essential improvements.

“Current electricity prices do not cover the cost of providing the service and there is need to finance a significant capital programme to improve service,” RIC stated.

“This review will affect your electricity bills for the next five years from March, 2006.

“RIC’s price limits will restrict the amount of revenue TTEC can raise from customer’s bills over the review period.

“To maximise revenue, TTEC has incentives to reduce costs and provide services more economically.

“These savings will be passed to consumers at the next price review through lower prices.

“An average residential bills will increase by $1.33 per week for customers consuming up to 100 kWh, $2.58 per week for customers consuming up to 250 kWh and by $3.83 per week for customers consuming up to 400 kWh.

“Increased electricity prices would increase inflation nationally by no more than 0.03 per cent.

“TTEC has to achieve cost efficiencies amounting to $51 million over the next five years.

“Price limits will enable TTEC to carry out and finance its functions including capital investment.”

A TTEC source told Mirror the audit department of the government needs to do a serious investigation into reports of corrupt practices, re-tenders, employment, contracts etc. at the commission.

“Also, the many functions, travel and events that are organised by senior officials of TTEC costing thousand and thousands of taxpayers’ money must be investigated,” said the source.

“The results of these investigations may mean huge savings and so there may be no need for increased rates.”

When Mirror contacted the co-operate communication department of TTEC, officials declined to comment on the organisation’s views regarding rate hike by RIC.