Cabinet has formally rejected the Regulated Industries Commission’s recommendation to increase electricity rates.
This was confirmed by Minister of Public Utilities, Barry Padarath, at Thursday’s Post-Cabinet Media Briefing.
“I have the confirmation, the minute in my hand, which shows the cabinet of the Republic of Trinidad and Tobago has rejected the RIC’s recommendations as it relates to the electricity tariffs.”
Minister Padarath said Cabinet has officially fulfilled one of its campaign promises.
He also criticised the previous administration for allowing a TT$7 billion debt between T&TEC and the National Gas Company (NGC) to accumulate, revealing that TT$1.5 billion in outstanding receivables from State agencies had further crippled T&TEC’s financial standing.
“Those two matters were left to languish in the public domain, thereby leaving T&TEC at times in a very precarious situation in terms of the administration of the company.”
Given this, he said the government will not impose higher rates until T&TEC can guarantee improved service and financial accountability.
“Where you are expecting a better quality of service, you are not receiving that and, at the same time, you are being asked to pay more. We found that to be unfair to consumers and therefore, that is why we have taken this approach.”
Minister Padarath added that the government is actively working to develop a payment plan to address the debt and restore T&TEC’s operational viability.
“Over the next couple days and weeks, we will be articulating to the population in terms of how do we see a payment plan.”
He also dismissed warnings from former Public Utilities Minister Marvin Gonzales that rejecting the RIC’s plan could lead to blackouts.
“He is crying doom and gloom. But the restrictions in terms of not accepting these tariffs will not have any significant impact. It already does not have an impact on a company’s operations in terms of going into the coffers directly.”
Moving forward, he pointed out that the government plans to modernise T&TEC with investments in renewable energy.
“One of our campaign promises has also been for T&TEC that we will look into alternative supplies of energy, whether it’s wind energy on the eastern coast, whether we will work with the multinational companies in terms of increasing solar power.”
The Minister also defended the government’s right to reject the RIC’s proposal.
“If it was a mandatory policy, it would have been very, very different. But it comes to the cabinet to accept or reject.”
Minister Padarath said more details on the payment plan will be shared in the coming weeks.