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Utilities rate review coming
Tuesday, December 15 2015
PUBLIC Utilities Minister, Ancil Antoine, yesterday said there will be a review of electricity rates paid by customers in this country, “in the not too distant future.” Antoine made the disclosure to reporters after he presented the instruments of appointment to members of the new board of the Trinidad and Tobago Electricity Commission (TTEC) at the Ministry’s offices in St Clair.
“The new TTEC Board will be chaired by Keith Sirju while Glenford Cyrille is the new TTEC deputy chairman. Other members of the new board of directors are Clifford Campbell, Wendy Ali, John Chapman, Dinesh Bissoon and Janet Richards.
Asked if there will be a revision of electricity rates in light of the current economic circumstances of the country, Antoine replied, “There will be a review of the rates and tariffs in the not too distant future.
Antoine did not give a specific time-frame within which any rate review would be conducted.
Asked if more would be said about a rate review by the time of the mid-year review of the economy takes place next year, the Minister replied, “Possibly closer to the mid-year review.” He said the last time the country’s electricity rates were reviewed was in 2006. When asked the time was right for an increase in electricity rates, Antoine was non-commital. However, he observed, “Power costs money. Water costs money to produce.” Noting that monies owed to TTEC by various State Enterprises and other companies in the country remains an issue for the Commission, Antoine disclosed,” There is a note going to Cabinet for monies owed to the public utilities sector and various agencies, by other government ministries. So that’s something the Ministry of Finance will be looking into.” Asked to quantify the amount of money owed overall to the public utilities sector and to TTEC specifically, the Minister was unable to do so.
However, he estimated that the monies owed to public utilities sector companies, were, “in the range of billions.” Saying that TTEC is “an integral part of the public utilities sector” of this country, Antoine said the new board “will now begin the work of transforming TTEC into a better organisation than we had previously.” He expressed confidence that the new board will make a good effort to provide the population, “with quality service in terms of electricity and power generation.” Antoine added, “The people of TT look forward to getting value for their money that they are paying as taxpayers to TTEC and the other utilities, to provide them with the necessary services.” Asked if there are any specific directives the board will undertake due to the economic challenges facing the country, Antoine replied,”Any directive is for them to be frugal. We don’t have money as we had in the past. If you listened to the Minister of Finance, we have to look after every cent that we have, and how we utilise it.” Speaking in the House of Representatives last Friday, Finance Minister Colm Imbert said that no backpay would be paid to public servants and members of the protective services by December 18, in time for Christmas, due to alleged overspending by the previous People’s Partnership (PP) administration.
Imbert promised that the arrears/backpay would be paid “at the earliest opportunity” in 2016. He had also assured that salaries would be paid.
T&TEC in $2.5b debt
Geisha Kowlessar
Published: Wednesday, March 12, 2014
A grim picture of the T&T Electricity Commission (T&TEC) was painted yesterday when it was revealed that the utility owed some $2.5 billion. Members of the commission who appeared before the Public Accounts Committee in Parliament included its deputy chairman Aaron Henry, general manager Kelvin Ramsook and managers of the various units.
The commission said yesterday it would soon be moving to increase electricity rates as it was operating at a loss. The increase would be done in consultatiion with the Regulated Industries Commission (RIC). The committee was chaired by Diego Martin North East MP Colm Imbert. Chairman of T&TEC Sushilla Ramkissoon-Mark was absent.
The issue of debt was raised by Independent Senator Dr Dhanayshar Mahabir, who asked how much was owed to the National Gas Company, how much of that bill was settled on an annual basis and why was there a chronic deficit on the accounts of T&TEC. In response Ramsook said in 2011 there was a settlement of an outstanding balance of $2.1 million. “There was a loan arrangement where the NGC would pay the Government, the Government would send the money to us and we in turn would pay NGC.
“That loan arrangement is over a seven-year period at three per cent interest, effective from 2011,” Ramsook said. He said in 2011 and 2012 the entire NGC bill was paid but in 2013 there was a deficit of $292 million. “The main reason for that is our cashflow situation. Whenever we fall short we hold back in paying NGC,” Ramsook added. He said the company also owed some $665 million to Trinidad Generation Unlimited (TGC).
Questions also arose as to whether, given the cashflow situation, money was held back for plant and equipment. Ramsook said work and maintenance were top priorities and the company did not compromise on equipment, maintenance and major construction work. On whether T&TEC could assure the public it was not operating with outdated equipment, Ramsook said there were processes which looked at maintenance throughout the country.
Imbert then questioned how TGU had allowed T&TEC to owe such an exorbitant sum, given that TGU is a private entity. “Is it just luck on the part of T&TEC?” Imbert asked. Ramsook said in November 2012 he wrote to the line ministry and asked for a government guarantee to be invoked, saying at that time T&TEC was only able to pay some of the money. On whether the Government did in fact step in to pay the debt, Ramsook said: “I know that has not happened yet and I know dialogue is taking place, even up to recently.
“I have received no indication of any intent to hold back on any generation. T&TEC, per se, has not paid anything more than the $21 million of the $22 million for 225 megawatts.” On the underlying factors which resulted in the cashflow problem, Ramsook said the factors of income and revenue must be managed very tightly. He added that the various expenditures over the years would have increased, including generation and labour cost.
“In terms of our income, there could have been no major change over the last couple of years. In 2011, 2012 and 2013 there was no change in income. “The cost of doing business in 2012 did in fact go up, as when we concluded negotiations we would have had to pay more salaries,” Ramsook said. Backpay, he said, amounted to some $100 million.
http://www.guardian.co.tt/news/2014-03-12/ttec-25b-debt
Habit7 wrote:Yes because if UNC was in power that would have never happen.T&TEC in $2.5b debt
Geisha Kowlessar
Published: Wednesday, March 12, 2014
A grim picture of the T&T Electricity Commission (T&TEC) was painted yesterday when it was revealed that the utility owed some $2.5 billion. Members of the commission who appeared before the Public Accounts Committee in Parliament included its deputy chairman Aaron Henry, general manager Kelvin Ramsook and managers of the various units.
The commission said yesterday it would soon be moving to increase electricity rates as it was operating at a loss. The increase would be done in consultatiion with the Regulated Industries Commission (RIC). The committee was chaired by Diego Martin North East MP Colm Imbert. Chairman of T&TEC Sushilla Ramkissoon-Mark was absent.
The issue of debt was raised by Independent Senator Dr Dhanayshar Mahabir, who asked how much was owed to the National Gas Company, how much of that bill was settled on an annual basis and why was there a chronic deficit on the accounts of T&TEC. In response Ramsook said in 2011 there was a settlement of an outstanding balance of $2.1 million. “There was a loan arrangement where the NGC would pay the Government, the Government would send the money to us and we in turn would pay NGC.
“That loan arrangement is over a seven-year period at three per cent interest, effective from 2011,” Ramsook said. He said in 2011 and 2012 the entire NGC bill was paid but in 2013 there was a deficit of $292 million. “The main reason for that is our cashflow situation. Whenever we fall short we hold back in paying NGC,” Ramsook added. He said the company also owed some $665 million to Trinidad Generation Unlimited (TGC).
Questions also arose as to whether, given the cashflow situation, money was held back for plant and equipment. Ramsook said work and maintenance were top priorities and the company did not compromise on equipment, maintenance and major construction work. On whether T&TEC could assure the public it was not operating with outdated equipment, Ramsook said there were processes which looked at maintenance throughout the country.
Imbert then questioned how TGU had allowed T&TEC to owe such an exorbitant sum, given that TGU is a private entity. “Is it just luck on the part of T&TEC?” Imbert asked. Ramsook said in November 2012 he wrote to the line ministry and asked for a government guarantee to be invoked, saying at that time T&TEC was only able to pay some of the money. On whether the Government did in fact step in to pay the debt, Ramsook said: “I know that has not happened yet and I know dialogue is taking place, even up to recently.
“I have received no indication of any intent to hold back on any generation. T&TEC, per se, has not paid anything more than the $21 million of the $22 million for 225 megawatts.” On the underlying factors which resulted in the cashflow problem, Ramsook said the factors of income and revenue must be managed very tightly. He added that the various expenditures over the years would have increased, including generation and labour cost.
“In terms of our income, there could have been no major change over the last couple of years. In 2011, 2012 and 2013 there was no change in income. “The cost of doing business in 2012 did in fact go up, as when we concluded negotiations we would have had to pay more salaries,” Ramsook said. Backpay, he said, amounted to some $100 million.
http://www.guardian.co.tt/news/2014-03-12/ttec-25b-debt
Too bad UNC can never stay in power long enough to make tough decisions rather than just leave a bill.
civicman wrote:Isn't the PNM just getting a taste of what they did on previous occasions.
Eg 86.
So with all the stupid talk debt collectors Ent care who leave the bill they want to know who paying Ent.
Run and cry that kamla leave the bill boo hoo.
We run things in here now.
tr1ad wrote:boo hoo....
hopefully people learn about conservation this time around
zoom rader wrote:Habit7 wrote:Yes because if UNC was in power that would have never happen.[
“That loan arrangement is over a seven-year period at three per cent interest, effective from 2011,” Ramsook said.
http://www.guardian.co.tt/news/2014-03-12/ttec-25b-debt
Too bad UNC can never stay in power long enough to make tough decisions rather than just leave a bill.
Yeah PNM making tough decisions to which they are the culprit.
Time to sell TTEC just as they did getting rid of Caroni.
Government should not be running businesses.
EmilioA wrote:zoom rader wrote:Habit7 wrote:Yes because if UNC was in power that would have never happen.[
“That loan arrangement is over a seven-year period at three per cent interest, effective from 2011,” Ramsook said.
http://www.guardian.co.tt/news/2014-03-12/ttec-25b-debt
Too bad UNC can never stay in power long enough to make tough decisions rather than just leave a bill.
Yeah PNM making tough decisions to which they are the culprit.
Time to sell TTEC just as they did getting rid of Caroni.
Government should not be running businesses.
The PNM was in power in 2011 ? I knew Kamla was a PNM !
zoom rader wrote:
I guess the debt started in 2010.
Ramsook said in 2011 there was a settlement of an outstanding balance of $2.1 million.
He said in 2011 and 2012 the entire NGC bill was paid but in 2013 there was a deficit of $292 million. “The main reason for that is our cashflow situation. Whenever we fall short we hold back in paying NGC,” Ramsook added. He said the company also owed some $665 million to Trinidad Generation Unlimited
RIC reviews electricity rates
Monday, June 24 2013
THE Regulated Industries Commission (RIC) is preparing a draft document for the review of rates charged by the TT Electricity Commission (TTEC).
Last Friday, RIC executive director Harjinder Atwal said the RIC was mandated under the Regulated Industries Commission Act, “to set principles and methodologies for determining tariffs every five years.”
The “post price control review period ended March 31, 2011” Atwal told a meeting of a Joint Select Committee (JSC) with officials of TTEC and RIC at the J Hamilton Maurice Room, Parliament, Port-of-Spain.
Atwal said there were some “small problems” in relation to getting information and with board appointments but the RIC had completed its first draft determination. The document was approximately 500 pages. “Once the draft determination is completed go out for public consultation before we finalise the rate increase,” he said.
JSC member Education Minister Dr Tim Gopeesingh asked, “So you are finalising if there is need for any rate increase or not.” Atwal replied, “Definitely yes, or rate adjustment if you want to call it that.” He said the Act required consultation with all stakeholders. The question of rates charged was raised during the session.
The issue of rates was raised by Member of Parliament for Moruga/Tableland, Minister of National Diversity and Social Integration Clifton de Coteau who said he has had visits by members of various community councils “literally crying” due to rates.
He cited the community centre in Marac, Moruga, which could not be used as intended and was being rented to churches in order to meet the TTEC bill.
TTEC general manager Kelvin Ramsook said there were two rates – domestic and commercial/industrial. He said Rate A for domestic customers was five cents/kilowatt hour and there were three categories based on usage – 26 cents/hr and 32 cents/hr to 37 cents per hour.
Rate B for commercial and “other than domestic” started at 41.5 cents/kilowatt hour. Ramsook said TT’s rates were the cheapest in the world. De Coteau said he was impressed with Ramsook’s knowledge but questioned where was TTEC’s empathy for a rural community which could not afford TTEC’s rates. Speaking for the RIC, Atwal said any special rate to be introduced was subsidised by the State otherwise “you are going to put that cost on some other customers and that may not be fair.” During the session, Gopeesingh appealed to TTEC to not charge commercial rates to the nation’s schools. “Please kindly look into that and see if you can help us,” appealed Gopeesingh to which De Coteau interjected and “community centres.”
“We have nearly 900 schools you know what our bills are and we want to use the money for the education of our children,” Gopeesingh said.
http://newsday.co.tt/business/0,179641.html
EmilioA wrote:zoom rader wrote:
I guess the debt started in 2010.
Well this is what the man sayRamsook said in 2011 there was a settlement of an outstanding balance of $2.1 million.He said in 2011 and 2012 the entire NGC bill was paid but in 2013 there was a deficit of $292 million. “The main reason for that is our cashflow situation. Whenever we fall short we hold back in paying NGC,” Ramsook added. He said the company also owed some $665 million to Trinidad Generation Unlimited
Note TGU only started operating in 2013.
zoom rader wrote:EmilioA wrote:zoom rader wrote:Habit7 wrote:Yes because if UNC was in power that would have never happen.[
“That loan arrangement is over a seven-year period at three per cent interest, effective from 2011,” Ramsook said.
http://www.guardian.co.tt/news/2014-03-12/ttec-25b-debt
Too bad UNC can never stay in power long enough to make tough decisions rather than just leave a bill.
Yeah PNM making tough decisions to which they are the culprit.
Time to sell TTEC just as they did getting rid of Caroni.
Government should not be running businesses.
The PNM was in power in 2011 ? I knew Kamla was a PNM !
I guess the debt started in 2010.
zoom rader wrote:tr1ad wrote:boo hoo....
hopefully people learn about conservation this time around
I don't think is a matter of conservation, it's more of a management and financial issues.
It just that these mis-managed companies are employed with the wrong ppl and in the end citizens have to pay for this.
Had TTEC been a private run company they would have been in far better shape and making a profit for its share holders.
Government should not be running businesses
zoom rader wrote:EmilioA wrote:zoom rader wrote:
I guess the debt started in 2010.
Well this is what the man sayRamsook said in 2011 there was a settlement of an outstanding balance of $2.1 million.He said in 2011 and 2012 the entire NGC bill was paid but in 2013 there was a deficit of $292 million. “The main reason for that is our cashflow situation. Whenever we fall short we hold back in paying NGC,” Ramsook added. He said the company also owed some $665 million to Trinidad Generation Unlimited
Note TGU only started operating in 2013.
TTEC should have employed the Muslims to get monies owed to them.
But as we all know TTEC wage bill is unnecessary high. Ever realise why TTEC does do real work after 4pm?
pjfred wrote:Yeah 6 billion plus eggs, now they trying to give a&v drilling the rest with one of the biggest contracts this country have ever seen.
zoom rader wrote:Well look tings just got worst for TTEC their largest user Mittal steel shut down.
An inflated preconceived recession by this government and their financiers.
Dem same financiers did say once workers loose jobs they will employ dem.
So one min trin have a shortage of workers and next ppl loosing their jobs.
This is what I call a Pump and dump, a term used in the stock market to manipulate a share/stock. This government is using that same strategy.
EmilioA wrote:zoom rader wrote:Well look tings just got worst for TTEC their largest user Mittal steel shut down.
An inflated preconceived recession by this government and their financiers.
Dem same financiers did say once workers loose jobs they will employ dem.
So one min trin have a shortage of workers and next ppl loosing their jobs.
This is what I call a Pump and dump, a term used in the stock market to manipulate a share/stock. This government is using that same strategy.
So Kamla is a PNM ?
zoom rader wrote:EmilioA wrote:zoom rader wrote:Well look tings just got worst for TTEC their largest user Mittal steel shut down.
An inflated preconceived recession by this government and their financiers.
Dem same financiers did say once workers loose jobs they will employ dem.
So one min trin have a shortage of workers and next ppl loosing their jobs.
This is what I call a Pump and dump, a term used in the stock market to manipulate a share/stock. This government is using that same strategy.
So Kamla is a PNM ?
Make what you want of it, you have a lot to learn.
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