Schedule 2
(Regulation 4)
INDEXATION FORMULA
The tariff will be adjusted annually according to the following indexation formula to reflect changes in the weighted average of specific input prices:
Tt = Tt-1 * [1 + (0.4∆L + 0.3∆E + 0.2∆I + 0.1∆CPI) + K]
Where:
T = Tariff
t = Year in which the adjustments will be implemented (current year),
t-1 = Year prior to the year in which the adjustments will be implemented
L = Wage Index, measured by the wage rate for the lowest grade of worker at a similar utility company locally or regionally approved for this purpose by the Commission.
∆L = Change in wage index, as calculated by: (Lt - L(t-1))/L(t-1)
E = Tariff for high voltage electricity supply (per kWh)
∆E = Change in electricity tariffs, as calculated by: (Et - E(t-1))/
E(t-1)
I = Industrial index weighting for maintenance costs as measured by changes to the following categories in the US Department of Labor Producer Price Index. (This index does not take into account currency fluctuations and must be adjusted during a triennial tariff review to provide for exchange rate fluctuation if the currency in Saint Lucia is no longer pegged to the US Dollar):
| Abbr. | Industry
Category | Product
Category | Change
Calculated by: |
| P | Pump and pumping equipment mfg | Domestic water Systems | ∆P = (Pt – Pt-1)/Pt-1 |
| FM | Total fluid meter and counting device mfg | Liquid Meters | ∆FM = (FMt –
FMt-1)/FM t-1 |
∆I = Change in Industrial Index, as calculated by: (∆I + ∆FM)/2
CPI = Saint Lucia Consumer Price Index, as published by the Saint Lucia Department of Statistics
∆CPI = Change in CPI, as calculated by: (CPIt – CPI t-1)/ CPI t-1
K = K factor. This is to be determined by the Commission during each triennial tariff review.
All indices (t) are the latest available indices at the time of the review and t-1 = the index applied one year before t.
The Commission shall apply the annual tariff adjustment formula equally to all tariff classes in the Service Licensee's Tariff Scheme.
(Substituted by Act 3 of 2016 and by S.I. 156/2020)