Revised Laws of Saint Lucia (2021)

PART 4
GENERATION AND SUPPLY OF ELECTRICITY AND CHARGES THEREFOR

24.   Interpretation for Part 4

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   (1)   In this Part —

“allowable rate of return” means an annual return on average contributed capital based upon a spread of 2 percentage points and 7 percentage points above the cost of the most recent Government of Saint Lucia long term bonds issued on the RGSM, with the proviso that the minimum rate of return on average contributed capital so calculated shall be 10 percentage points;

“basic energy rate” means the charge per kilowatt hour, as prescribed by or calculated, in accordance with this Act, billed for electricity supplied excluding the fuel surcharge;

“certificate of compliance” means a document issued by the independent firm of accountants appointed in accordance with section 39;

“certificate of non-compliance” means a document issued by the independent firm of accountants appointed in accordance with section 39;

“Certification Committee” (Deleted by Act 2 of 2016)

“deficit rate return” means 10 percentage points less the actual amount of any return on average contributed capital less than 10 percentage points, and shall be treated in accordance with the provisions of section 30(4)(a);

“excess rate of return” means the actual return on average contributed capital minus the aggregate of the cost of the most recent Government of Saint Lucia long term bonds issued on the RGSM plus 7 percentage points and shall be treated in accordance with the provisions of section 30(3)(a);

“final rate of return” means the after-tax net income of the Company in any financial year divided by the average contributed capital and expressed as a percentage as calculated in accordance with Schedule 3 and submitted to the Commission in accordance with section 32 or section 33, as the case may be; (Substituted by Act 2 of 2016)

“final return” means the document prepared in accordance with Schedule 4 and submitted to the Commission in accordance with section 32; (Substituted by Act 2 of 2016)

“high tension supply” means a supply of electricity provided at nominally 11,000 volts line to line and at nominally 6300 volts line to ground with a minimum demand of 500 kVA;

“interim rate of return” means the after–tax net income of the Company in any financial year divided by the average contributed capital and expressed as a percentage as calculated in accordance with Schedule 3;

“interim return” means the document prepared in accordance with Schedule 4 and submitted to the Commission in accordance with section 30; (Substituted by Act 2 of 2016)

“low tension supply” means a supply of electricity provided at 240 volt single phase, 415 volts 3 phase, with a permitted variance of 4% above such voltage and 8% below such voltage;

“Minister” (Deleted by Act 2 of 2016)

“return on average contributed capital” means the after-tax net income of the Company in any financial year calculated in accordance with Part A of Schedule 3, divided by the average amount of contributed capital calculated in accordance with Part B of Schedule 3 and expressed as a percentage;

“Review Board” (Deleted by Act 2 of 2016);

“RGSM” means the Regional Government Securities Market which was established by the Eastern Caribbean Central Bank to meet the financing needs of Member Governments of the Eastern Caribbean Currency Union, to strengthen the primary market for bonds and treasury bills, and to promote the development of a secondary market for those securities.

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   (2)   The term “the cost of the most recent Government of Saint Lucia long term bonds issued on the RGSM” used in the definition of “allowable rate of return” means an interest rate derived on an arms length basis in an open and unrestricted manner, for borrowings with a minimum tenor of 10 years and for the avoidance of doubt, bonds raised under an underwriting or any such arrangement which may influence the interest rate or guarantee to the Government of Saint Lucia that any unsold residue of an issue will be taken up shall be ignored for the purposes of this calculation.

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   (3)   For the purposes of subsection (2), “interest rate” means the highest actual rate at which Government of Saint Lucia long term bonds were issued on the RGSM in the 12 calendar months immediately preceding 1 January in each year and in the absence of any such issues, the interest rate shall be determined by the average yield of Government of Saint Lucia long term bonds traded on the secondary market on the RGSM in the equivalent 12 calendar months period.

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   (Amended by Act 26 of 2001 and 12 of 2006)