ERA explains premature news of cheaper bills

(CNS): Expectations of cheaper power bills in September have been dashed after the Electricity Regulatory Authority announced that it jumped the gun when it supplied information to government which was used in a public report. Revelations in the PPM’s 99 day report, released Thursday, that said customers would get a small reduction in their CUC bills and a credit this month in connection with an insurance payment were later revealed to be premature. The new managing director of the regulatory authority confirmed Thursday evening that the talks regarding the adjustment are ongoing.

“The comments on both items – the base rate adjustment and the insurance proceeds – were premature and are subject to on-going discussions between the ERA and CUC,” Charlie Farrington, the MD, stated in relation to the details in the government’s report.  “The confusion arose at the ERA where there was a mix-up in communications resulting in the ERA providing the Ministry with premature and inaccurate information. The ERA regrets this error,” he added.

Despite the disappointment, the government is confident that the credit and base rate cut is coming soon. The misunderstanding relates to a section in the report that states the ERA had successfully won a dispute with CUC regarding the recent base rate increase.

The ERA expects there to be a credit applied to consumer bills in September and for the rate
to be adjusted slightly downward commencing in September billings. The regulator was said to have reached a settlement with CUC to claim around US$950,000 from insurers for additional fuel consumed due to catastrophic failures of generators in 2011. The money will, once the deal is finalized, be credited back to consumers via the fuel charge, reducing the balance in the CUC fuel tracker account.