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(Closed) CARILEC- Request For Proposal

REQUEST FOR PROPOSAL

CARILEC-REQUEST FOR EXPRESSIONS OF INTEREST – CONSULTING SERVICES

CARILEC Request for Proposal


Development of a CARILEC Position Paper on the minimization of barriers and establishment of incentives for Renewable Energy Technologies (RETs) and Alternative Fuels


RATIONALE

In January 2008 on behalf of its utility members CARILEC prepared a Position Paper on Energy Policy. This paper was prepared in order to increase the involvement of electric utilities in the Caribbean energy policy reform process. Through this paper, CARILEC utilities expressed their views on the important issue of an Energy Policy for their countries and/or the Caribbean region.

From January 2008 to now, a lot of further discussion and stakeholder consultations have taken place in the region on regulatory reform for the electricity industry with the main intent of 1) introducing competition and 2) minimization of barriers and establishment of incentives for Renewable Energy Technologies (RETs) and Alternative Fuels. Therefore, the utility members of CARILEC see the need for going a step further in the preparation of a Position Paper to address these issues from a Regulatory perspective.

In June 2009 CARILEC signed a contract agreement with the Inter-American Development Bank (IDB) under its Sustainable Energy and Climate Change Initiative (SECCI) and secured grant funding for various energy efficiency and renewable energy initiatives. The development of this Position Paper is being funded under this project with the IDB reference # ATN/OC-11496-RG. Therefore, consultants will be selected in accordance with the procedures set out in the Inter-American Development Bank: Policies for the Selection and Contracting of Consultants financed by the Inter-American Development Bank (current edition) and is open to all eligible consultants as defined in the policies.


KEY ISSUES TO BE ADDRESSED IN THIS POSITION PAPER

A.    Basic Tenets

•    Emphasis on the unconditional need for regulators and regulatory agencies to be independent, transparent, capable, experienced and predictable.
•    The regulatory framework must facilitate balancing of the interests of both consumers and investors, which in practice must lead to best rate levels as possible, while at the same time allowing the utility company a reasonable rate of return.
•    It must be pointed out to regional governments and other stakeholders that the industry is very capital intensive while the islands have relatively small populations and relatively large uneconomical customer segments, with at the same time universal service obligations imposed by the governments,  and so investors and lenders will demand a greater premium to finance utilities and IPP’s if regulators are not meeting these basic tenets

B.    Influencing Policy Decisions

•    With respect to influencing policy decisions the Carilec member utilities need to get heard by the respective governments and in Caricom.
•    At the same time Carilec could seek to strengthen the ties with agencies like CDB, IDB, IBRD, since policy decisions are also driven by these funding agencies. CARILEC must strive to be a source of data on best practice (not only in the region) utilizing its ability to collate information from disparate locations in order to get recognition from these institutions.
•    Cooperation with the regional organization of regulators, OOCUR, should be pursued in order to determine how Benchmarking efforts – which are of great importance for both Carilec and OOCUR – can be coordinated, and furthermore to stay informed on their activities and to discuss regulatory principles for island systems. Carilec should be pro-active in its relationship with OOCUR.


C.    Regulatory Topics

Renewables

Carilec’s position is that regulation is welcomed, but it should be taken into account that Caribbean utilities are very different from mainland systems, with characteristics that require careful examination and analysis and therefore a compatible regulation system is required.


Important topics:

•    What are the international developments in the regulatory area and to what extent are these relevant for Caribbean utilities?
– Analyze UK and US experiences, as well as Island experiences so far and identify 
similarities/differences in size, institutional background, topography, other differences.
•    What are the specific characteristics of Caribbean utilities as opposed to mainland utilities and what does this imply in terms of adapting the regulatory approach?
– Small scale, isolated, relatively young institutions
– Relatively high demand growth
•    Which elements from international regulatory experience are useful to adopt for the Caribbean, and which are not? For example:
– Useful: Limited market opening, consistency in regulation, opportunities for performance improvement
– Not useful: Full competition
•    What type of regulatory approach would be best for the Caribbean and how would this be shaped?

TIMELINE

•    Submit expression of interest (and) quotation by 15th September 2009 
•    Estimated Start date/ award of contract by 1st October 2009
•    Draft Final Report to be completed by 15th December 2009

Please contact the following for clarification or any queries that you may have:
– Nigel Hosein (Executive Director) at nhosein@carilec.org or (758) 452-0140/1 or (758) 721-7574



Category/ies:Regional News, Request for Proposals.
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