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Back to Revised Laws of Saint Lucia (2021)

Schedule 3

(Section 30(1) & 32)
Form of Rate of Return – Interim/Final
Particulars in respect of financial year ended ......................................
(All amounts to be expressed in Eastern Caribbean currency and given to nearest dollar.)
A.:	Calculation of net income, using amounts derived from the financial statements for the year under review, as follows
	1)	Revenue in respect of		EC$	EC$
		(a)	Energy sales	1(a)
		(b)	Revenue derived from or connected with any operating expense or asset included in item 2 below (including, without limitation, increase/decrease in provision for unbilled sales)	1(b)
		(c)	Fuel surcharge after deducting excess fuel costs over base cost	1(c)
					1(a)+1(b) +1(c) =I
	2)	Operating Costs in respect of
		(a)	Diesel generation	2(a)
		(b)	Transmission and distribution	2(b)
		(c)	Consumer services	2(c)
		(d)	Administrative expenses	2(d)
		(e)	Directors expenses	2(e)
		(f)	Maintenance expenses	2(f)
		(g)	Expenses derived from or connected with any operating income or asset not included in 2(a) to 2(f) above	2(g)
		(h)	Interest on moneys borrowed and all interest on consumer deposits	2(h)
		(i)	Any tax or imposition of any kind imposed by Government or any authority	2(i)
	Sub-total			2(j)
	Less: Depreciation charges included in any of 2(a) to (i) above			2(k)
					2(j)–2(k) = II
	3)	Sub-total (being I minus II)		III
	4)	Total depreciation charges calculated on historical cost basis of the Company's fixed assets, less amortization of consumer contributions		IV
	5)	Realised gains or losses incurred on the repayment of foreign currency loan principal		V
	6)	Operating Income (being III minus IV plus or minus V)		VI

B. Average Contributed Capital

Beginning of Year End of Year

$ $

(a) Amount paid up or credited as paid up on the share capital of the Company excluding the amount paid up or credited as paid up on any preference shares; and

(b) Credit Balance on Profit & Loss Account

(c) Deduct any unrealized exchange gain on debt, or add any unrealized exchange losses on debt that may exist from time to time as at the end of the financial year in question
Total Sum (a) + (b) + (c) _____ _______
Sum 1 Sum 2
_____ _______

C. Calculation of average contributed capital

Sum 1 plus Sum 2 and dividing the result by 2

D.	Calculation of Actual Rate of Return

		12)	Interim/Final Rate of Return to 3 decimal places	VI divided by XI = ___%
I certify to the best of my knowledge these particulars to be correct.

––––––––––––––––––––––––––––––––

Chairperson or Managing Director or Company Secretary

St Lucia Electricity Services Limited

Guidelines for Schedule 3

The following principles shall apply when preparing Interim and Final Returns in accordance with this Schedule:

A) No expense shall be taken into account for the purpose of determining the Interim/Final Rate of Return for any financial year unless such expense has been reasonably and necessarily incurred in producing the operating revenues for the said year.

B) Interest in excess of 15% on moneys borrowed is allowable as an expense, together with all interest paid on consumer deposits.

C) No amortization or goodwill costs will be allowed as expenses in determining operating income.

D) The foregoing shall not be interpreted to exclude charitable donations and similar non-essential expenditures if such do not exceed 2% of the total operating costs defined in this Schedule as “II”. Guarantee fees payable in connection with debt obligations arising under agreements entered into on and after the date of the coming into operation of this Act shall be excluded from the calculation of operating expenses.

E) Fixed physical assets shall be valued at the historical or revalued basis as appropriate with International Financial Reporting Standards less consumer contribution and less the amount of accumulated depreciation computed at annual rates designed to depreciate fully the said assets on straight line basis over their respective estimated useful lives.

F) Depreciation provisions shall be in accordance with International Financial Reporting Standards and shall be applied on a consistent basis to the historical or revalued values of the fixed physical assets as appropriate.