BCEN Questions BL&P Proposal to Rent Diesel Generators: Implications for Electricity Supply & Demand

The Barbados Consumer Empowerment Network (BCEN) is questioning a BL&P proposal to undertake the rental of two diesel generators.

In a statement on Sunday, BCEN said renting generators is often associated with a supply and demand problem and is regarded as a short-term or temporary fix to the problem.

BCEN says it wants the FTC to be mindful of the fact that renting generators signals that there is some sort of challenge with the supply and demand of electricity which also means that there is a capacity problem.

Here is the full statement from the BCEN:

The Barbados Consumer Empowerment Network (BCEN) wants clarification on whether the BL&P is currently facing a supply and demand problem. This seems to be the case given the fact that the BL&P proposes to undertake the rental of two diesel generators. Since the issue of supply and demand was never disclosed in any of BL&P’s Press Releases, clarification is needed to help consumers fully understand why the BL&P is undertaking preemptive action to buffer its electricity supply in anticipation of the mentioned upcoming T20 Cricket World Cup and “other” nameless events taking place in Barbados in 2024.

Technicalities of the issue

BCEN maintains that the BL&P needs to communicate to consumers whether they have an existing problem with the supply and demand of electricity. Renting generators is often associated with a supply and demand problem and is regarded as a short-term or temporary fix to the problem. Over the years the BL&P have been consistently and reliably reporting to customers that disruptions in its power supply is usually caused by transmission problems, line issues, or external interference such as forces of nature or monkeys. Memory also recalls that in recent times the BL&P has been reporting that most of the faults that took generators offline were caused by either nature, monkeys or the transmission lines themselves. This information alone suggests that the problem BL&P seems to be having is a persistent transmission problem and not a generator problem.

The rental of generators seems to be at variance with what the BL&P has been reporting as the main cause for the disruptions in its electricity supply to customers. Therefore, the question remains, if indeed it is a transmission problem why not fix it. Renting generators will not remedy the problem. The generators will only serve as a backup just in case there is a power outage. Furthermore, consumers were made to understand from the BL&P that the company has on standby, outdated, and decommissioned generators in the event of power outages. Does this mean that these generators can still be used?

The FTC needs to be mindful

BCEN wants the FTC to be mindful of the fact that renting generators signals that there is some sort of challenge with the supply and demand of electricity which also means that there is a capacity problem. Indeed, if BL&P has an issue with capacity, then it is an issue that warrants serious attention and one that consumers should be made aware of. BCEN also urges the FTC, to make the distinction between a generator problem and a transmission problem in its consideration of the BL&P’s application. If the BL&P does not have a supply and demand problem, then it is safe to conclude that they have a transmission problem that they should fix. BCEN believes that the proposed move to rent generators also raises questions about the overall reliability and resilience of the electricity supply system in Barbados, and therefore BCEN seeks clarification on the proposal to recover cost for the rental of the two diesel generator units.