Sir Calixte George
CASTRIES, St Lucia – Former minister for public utilities, Sir Calixte George, has weighed in on the high cost of fuel in Saint Lucia, saying St Lucia Electricity Services (LUCELEC) should have reduced its rate of return. According to the former firebrand and no-nonsense politician, if he were the prime minister [of this country], it would not have happened.
“If I were the prime minister, I would implement it tomorrow morning,” Sir Calixte said on News Maker Live on Wednesday, October 28, 20226. “My position is that their rate of return should be on the basis of the government’s rate of return on their bonds,” he added.
Sir Calixte said that he was going to “tackle” LUCELEC as he had done to Cable and Wireless, causing it to reduce its tariff. He said the reason he was unable to do so at the time, was because of the Colonial system.
“You have to be able to reduce on the rate- of- return that they have guaranteed to LUCELEC. You can’t allow them to maintain the high rate of return they have had from the inception,” he argued. “It’s squeezing our balls…in terms of the further development of the country,” Sir Calixte said.
According to him, the high rate of return was implemented by the former prime minister, the late Sir John Compton, adding that it was not his fault, but rather due to the circumstances at the time. Sir Calixte said since then the government has changed the Electricity Act, adding that he has written against what it did.
According to Sir Calixte, LUCELEC is the most regressive institution as far as the development of Saint Lucia is concerned.
“LUCELEC has absolutely no right to increase the rate as it has been doing,” he said.
The government of Saint Lucia on Monday said:
“ Higher overseas fuel costs are making electricity more expensive to generate, placing added pressure on households and businesses. The government cannot control overseas fuel prices, but it is taking action to help ease that pressure.”
Prime Minister Philip J. Pierre is said to have continued talks with LUCELEC:
- The agreed payment plans and temporary halt to disconnections provide immediate assistance while more sustainable measures are explored.
- The Consumer Affairs Department will take these discussions forward with LUCELEC.
- Gasoline and diesel are kept steady through direct per-gallon absorption by the state through substantial subsidy.
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