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3.1.8 Energy Policy Framework At the time that the studies discussed were conducted, Antigua and Barbuda did not participate in the CREDP project, and so it was not addressed in the CREDP studies. The country also did not participate in the UNDP/SRC/CEIS initiative. The current study uses data found in Antigua and Barbuda’s Draft National Energy Policy, OAS-CSEP mission reports, and other sources. The government recently has made important strides in its energy policy, establishing a Sustainable Energy Desk and commissioning a National Energy Task Force to develop a national sustainable energy policy. Although the potential of most renewable energy sources currently are unknown, Antigua and Barbuda begun an assessment of wind resources by installing four meteorological towers in June 2010, as of December 2011 no updates were available. 3.1.9 Energy Sector Regulatory Framework Analysis Antigua and Barbuda rely heavily on fossil fuels to meet energy needs, particularly electricity generation and transportation. Other fuels utilized for energy needs include gasoline, jet kerosene, gas, oil/diesel, heavy fuel oil, and liquefied petroleum gas (LPG) (Government of Antigua and Barbuda (2010c). The country’s energy costs in relation to GDP and GNP towers above other OECS members (Government of Antigua and Barbuda (2010c). According to the Draft National Energy Policy, [D]uring the period 2005 to 2009 total sales by the West Indies Oil Company (WIOC) averaged 12% of the national GDP. In 2008, the sales revenue peaked at 15% of GDP. This translates into unsustainable demands on the country’s foreign exchange reserves with the previously referenced study from 2005 showing that energy costs consumed one-third of the country’s foreign exchange. (Singh 2009) Further, until recently, the government has subsidized the retail price for fuel which significantly reduced electricity bills in comparison to the rates of other OECS members. 3.1.10 Legal and Regulatory Framework The legislative framework for the energy sector in Antigua and Barbuda is as follows. 3.1.10.1 Public Utilities Act (1973) Section 3 of the Public Utilities Act established the Antigua Public Utilities Authority (APUA) and Section 5(1) grants APUA the “exclusive right to generate, distribute, supply and sell electricity within Antigua and Barbuda and to perform services incidental thereto.” The APUA also is empowered to grant licenses to others “to generate and supply electricity at any place within Antigua and Barbuda” (Section 5(2)). The Act also provides under Section 15(1) that utility prices charged by APUA must be in accordance with tariffs fixed by the Cabinet. Other notable sections include Section 40 which provides that the Minister may, after consultation with APUA make regulations on “(a) the methods of determining the charges payable by customers for the consumption or use of public utilities; (f) the system and mode of electricity supply”; and Section 41 which empowers APUA to make regulations on, for example, “(a) the methods of making application for a supply of public utilities; (e) the prevention of the misuse or waste of electrical energy.” The Act however, does not reflect current trends in energy sector reform. The monopoly granted by Section 3 run counter to current trends which involve a movement toward unbundling and privatization as a more efficient, transparent means of sustainable energy management. Further, the Act does not make provisions for an independent public utilities body/commission to regulate electricity entities by 20PDF Image | Energy Policy and Analysis Caribbean
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