THE EDITOR: In view of the electricity rate increases currently being considered by the authorities, I offer the following suggestions to T&TEC and the Regulated Industries Commission for serious consideration before final decisions are made.
The cost of electricity is heavily subsidised by the State mainly through the below-market pricing of natural gas used to generate electricity for the national grid. This means that every watt of electrical energy used by consumers is a cost to the State and we all pay for it through taxes. Since the utility rates are so low there is no real incentive for citizens to change and reduce their electricity consumption habits.
Some strategies which could be adopted by T&TEC include:
1. A volume sensitive pricing structure where higher rates are applied for homes with higher electricity usage. This would result in reduced consumption, reduced wastage and allow low-income families the continued benefit from subsidies.
(2) A subsidised programme to replace energy-hungry incandescent lamps with energy-efficient LED bulbs. This would be cost neutral to the State and benefit T&TEC through cost avoidance of capital expenditure to meet an ever increasing demand for generating capacity.
(3) Investment in alternative energy sources. T&TEC recently stated that solar energy was not feasible but I seriously challenge that conclusion. Why is it feasible in Barbados and other Caribbean islands with similar climatic conditions but not in TT? Has the commission considered incentives for solar and wind generators on a micro level, ie, individual homes or communities, where excess capacity can be fed to the grid?
There are endless options for alternative energy sources which should be explored in terms of energy diversification and the elimination of total dependency on our finite hydrocarbon resources.
CARL RAJACK
, St Augustine