The Independent Regulatory Commission (IRC) says it has completed a significant portion of its work relating to DOMLEC’s revised electricity tariff application, but a governance issue has now emerged regarding the final approval process.
According to Executive Director Justinn Kase, DOMLEC has challenged the authority of the Executive Director to approve the tariffs in the absence of a Board of Commissioners. The utility has reportedly relied on legal advice supporting its position, while the IRC has also sought independent legal counsel, which has arrived at a different interpretation.
Kase explained that based on the advice received from the Commission’s independent attorney, the IRC has proceeded to prepare its Statement of Results and Decision and has referred the matter to the responsible Minister for further consideration. The Minister is expected to seek guidance from the Attorney General regarding the appropriate course of action.
“This is kind of strange to us,” Kase remarked, noting that the Commission had invested considerable time and effort over the past four years reviewing DOMLEC’s submissions, validating the information provided, and conducting extensive public consultations in the public interest.
The Executive Director stressed that the IRC is guided by the Electricity Supply Act No. 10 of 2006, which establishes both the authority and responsibilities of the Commission. He noted that the Commission granted DOMLEC conditional approval in March 2026 while anticipating the commercial operation of the geothermal facility and subsequently conducted island-wide consultations and outreach activities.
Kase also pointed to provisions within the Act that address situations where statutory timelines are exceeded. He explained that Section 24(7) provides that if the Commission does not make a determination within the prescribed period, the revised tariffs are deemed approved until such time as a formal determination is made by the Commission.
The IRC says it has taken all necessary steps available to it under the law and will continue to update the public as further guidance is received and the process advances.
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