Winning Essay by Deniane John

As they say, the bottom line is money. An IRC is fundamental in ensuring the public accrues whatever savings they may be entitled to. Crude oil prices per barrel have skyrocketed from an average $2.51 USD in 1950 to an average of $95.73 USD in 2011 (3). The volatility of petroleum product prices further emphasizes the types of matters which require a professional body to advance the public’s interest, wherever possible. In October 2011 the U.S domestic purchase price was $92.28 USD, in November it had risen to $100.18 USD, followed by $98.71 USD in December (4).

Consumers are definitely feeling the financial vise as Dominica’s energy production is largely fossil fuel based; approximately 65% is currently estimated to be generated in this manner (5). With an IRC, consumers in both public and private sectors are made aware of vital information; e.g. the fuel surcharge increase from $0.4006 per kWh in January 2012 to $0.5309 per kWh in April 2012 (6). This enables prudent fiscal planning by energy consumers.

Information like this is critical, for example, to the Dominica Hotel and Tourism Association (DHTA), as recent local headlines suggest. The need for an independent regulatory body at a time when the sole power company experiences record profits is critical to ensure transparency.

The public needs to be satisfied that minimum efficiency goals are defined and adhered to in the delivery of the electricity product. We can hope that through regulation and oversight by an Independent Regulatory Commission, the favorable fuel prices extended by Petro Caribe to DOMLEC are similarly passed on — to some extent — to the consumer. Unequivocally, an IRC fulfills a necessary role in representing the public’s financial interest.