March 14, 2001
DOMLEC FREEZES RATES FOR 2001

The management of Dominica Electricity Services Ltd (DOMLEC) has announced that the company is freezing rates this year, despite increasing financial pressure on the company to raise its tariff.

The DOMLEC press release states: "DOMLEC is entitled to raise the tariff in accordance with the Electricity Supply Act. However, this year DOMLEC customers’ bills will not be higher unless there is an increase in international fuel prices. This year, the overall rate that customers pay for electricity will be no higher than they paid in February 2001.

Two weeks ago, DOMLEC in accordance with the Electricity Supply Act, calculated that it would be necessary to increase the basic tariff by 4.852%. This would have raised everyone’s DOMLEC bill by that amount.

Realizing the difficulties a rate increase could generate for all DOMLEC customers at this time, the Government of Dominica met with DOMLEC and consumer groups to work together to solve this problem to the benefit of all Dominicans. The Government of Dominica and DOMLEC have agreed there will be no overall rate increase this year. This is a one-time, special arrangement. The 4.852% increase will not be implemented until next year (January 01, 2002).

As a result of these positive negotiations, a partnership will be formed between DOMLEC, the Government of Dominica, and various private and public sector groups to work closely together to find ways forward for the future of electricity in Dominica."

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