FUEL CLAUSE ADJUSTMENT (FCA) DECISION

The Fair Trading Commission has completed its review of the Fuel Clause Adjustment (FCA) and has issued its decision. In summary, the Commission has determined that:

1. The FCA will be calculated using historic costs instead of projected fuel costs.

2. The new formula for the FCA will be:  

In this formula, the percentage of energy used by auxiliary equipment such as feed pumps and cooling fans in the generating stations and losses that occur through the transmission and distribution of electricity will be subtracted from the gross energy produced.

3. The new formula for calculating the FCA will also include the adjustments for any cumulative under/over recovery of fuel costs from the previous month.

4. The Barbados Light & Power Company Ltd. (BL&P) will be permitted to employ the smoothing technique at its discretion. The Commission believes that smoothing will reduce the impact of significant fluctuations in the FCA from one month to the next.

5. The BL&P in its monthly reporting shall advise the Commission of the extent to which the FCA has been smoothed. The BL&P shall also provide to the Commission information on all the factors that were taken into account to determine the smoothed FCA.

6. The BL&P, in its monthly and quarterly reports, shall provide information to show how the Renewable Energy Rider (RER) credits are included in the calculation of the FCA.

The Decision and Order may be viewed and downloaded here... [pdf]

Dated the 11th day of October 2013

Peggy Griffith, Chief Executive Officer