Government has proposed to increase electricity rebates for customers whose bills are under $300 from 25 per cent to 35 per cent, and to implement a similar scheme for water rates.
Speaking in Parliament during today’s 2022 budget presentation, Finance Minister Colm Imbert said the measure is scheduled to take place from January 1, 2022.
“The T&TEC rebate programme provides a 25 per cent rebate to T&TEC customers on bills which are $300 or lower, that is, the total value of the bill including VAT.
“I propose to increase the rebate from 25 per cent to 35 per cent on bills that are $300 or lower.”
He said this would affect 210,000 households at an additional annual cost to government of $25 million.
He said this measure would take effect from January 1, 2022.
Additionally, Imbert said a similar measure would be introduced for water rates.
“I also propose to appropriately offset the cost of water for the same group of households receiving the T&TEC bill rebate.”
He said further details would be announced in the Finance Bill, 2021.
T&TEC’s 25 per cent electricity rebate was implemented as a result of 2016 budget measures and seeks to offer economic relief to lower-income households.
The rebate is applied automatically to qualifying accounts for each billing cycle.
The rebate is applicable to electricity bills that are $300 or less. The following charges will be used to calculate the $300:
a) The total kWh consumption charge for the bi-monthly period
b) The bi-monthly customer charge of $6.00
c) The Value Added Tax of 12.5%
If there are other charges on the bill such as reconnection/disconnection fees, adjustments etc., these will not be counted towards the $300 limit.