On Friday March 25, 2022, the Fair Trading Commission (“the Commission”) issued its Decision on the Barbados Light & Power Company Limited (BLPC)’s Application for a Review of Depreciation Rates and Approval of the Depreciation Policy.
The Commission has determined, inter alia, that:
- The use of the straight-line remaining life method as employed by the Applicant in determining the asset lives is approved.
- The net salvage values of the assets as determined by the Applicant for Transmission and Distribution (T&D) and General Plant are considered justifiable and verifiable and are therefore approved.
- The T&D rates and the General Plant rates derived from asset service lives calculated in the 2017 Depreciation Study, adjusted for December 31, 2019 as follows in Table 1 are approved.
Table 1 Depreciation Rates by Plant Type
| Plant Type | 2019 Update -Depreciation Rates |
| T&D | 3.10% |
| General | 4.09% |
- Based on the information provided by the Applicant, the depreciation rates for Generation Plant as set out in the Application are not approved.
The depreciation rates approved herein will become effective concurrent with the rates to be approved on the date ordered in the ongoing Rate Review.
The Decision can be viewed on the Commission’s website.