IRC Proposes New Measures to Enhance Electricity Pricing Structure

The Independent Regulatory Commission (IRC) has announced proposed changes to Dominica’s electricity pricing structure, with a significant introduction of Time-of-Use (TOU) tariffs. These changes aim to promote energy efficiency and provide consumers with more control over their electricity bills.

On Tuesday, May 13 the Commission hosted a Stakeholders’ Forum to present its measures for modernizing the electricity tariff structure, which will take effect once new electricity rates are approved for the Dominica Electricity Services Ltd. (DOMLEC).

Currently, electricity rates remain the same throughout the day, regardless of fluctuations in demand. The introduction of TOU charges will give consumers the choice of on peak and off-peak periods usage times.

The revised system will reflect varied electricity rates based on the time of day, which encourages consumers to shift their usage to periods when demand is lower, and electricity is cheaper. This approach aligns with global best practices and supports Dominica’s commitment to affordable sustainable energy consumption. TOU tariffs will apply to residential, large commercial, large industrial, and hotel customer categories.

Additional proposed changes include:

• Creation of a Small Business category for non-domestic customers using 500 kWh or

less per month.

• 100% pass-through of fuel costs via a simplified fuel charge, replacing the existing fuel surcharge.

• Introduction of an Independent Power Producers (IPP) charge to cover future costs

related to DOMLEC’s purchase of geothermal power.

• Implementation of a monthly Maximum Demand Charge for large commercial, large

industrial, and hotel customers. This is expected to replace the current Installed Capacity Charge.

• Re-definition of large customers as commercial, industrial, or hotel customers using more than 500 kWh per month.

• Future introduction of Key Performance Indicators (KPIs) to monitor and improve

DOMLEC’s operational efficiency.

The IRC encourages and challenges all stakeholders to participate in the upcoming final public consultations to review DOMLEC’s Cost of Service Study and Rate Proposal before the new rates are finalized.

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