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an installed capacity of 76 MW.19 The main challenges in the institutional framework are that the nature of accountability and responsibility, supported by the identification of clear roles and responsibility including a hierarchy or chain of command or responsibility, is not readily discernible. 3.6.14 Legal and Regulatory Framework In terms of the legal, policy, and regulatory framework, the Power Supply Regulation (1964) established the St. Lucia Electricity Services Limited Act and granted it the exclusive right to generate, transmit, distribute, and sell electricity in St. Lucia. This right was retained until 2045 under the Electricity Supply Act (1994), which repealed/superseded the regulation. LUCELEC is empowered to grant—and the Cabinet may revoke—sub-licenses to generate, transmit, distribute, and sell electricity under certain conditions and within a specified area (see Section 4 and Section 5, respectively). LUCELEC is permitted the duty-free importation of all plant machinery, equipment, and vehicles for the purposes of its business; income tax concessions for any losses incurred by LUCELEC (Section 9); and exemptions from the payment of stamp duty (Section 10). These benefits under the legislation also could be deemed to apply to the importation of renewable energy technologies. Further, under Section 10 the government may acquire land, upon LUCELEC’s request, that is reasonably required to generate, transmit, distribute, and supply electricity. This provision also seems to apply to the establishment of wind farms and other renewable energy–related initiatives. Other renewable energy–related provisions are Section 19, which permits LUCELEC—whether on Crown or private land—to harness water or wind power without charge for the purpose of providing the public with electricity. Section 21(2) permits LUCELEC or another corporation, with LUCELEC having the right of first refusal, to generate electricity utilizing fumaroles at Soufriere. Another notable provision in the ESA relates to self-generation. Section 21(1) permits self generation for one’s own consumption and use, but under certain terms and conditions which are not specified in the Act, and within a specified area. In terms of any form of regulatory oversight provisions in the ESA, Section 34 provides for the establishment of a Review Board which is responsible for reviewing basic energy rates (Section 31). Although the ESA is the main legislative instrument relating to the energy sector, there is other legislation that could touch upon and concern the sector and which must be considered, including the Land Acquisition Act, Montreal Protocol (Substances that Deplete the Ozone Layer) Act, Physical Planning and Development Act, Motor Vehicles and Road Traffic Act, Public Utilities Restriction on Shareholding (St. Lucia Electricity Services Limited) Act, Waste Management Act, and the Water and Sewerage Act. Regarding policy statements, in 1999 the government passed Cabinet Conclusion No. 646, eliminating all import duties and consumption taxes on renewable energy equipment and materials. In 2001, solar water heaters were made tax deductible. Details on other policy and regulatory instruments are not readily available in the public domain, except the national energy policy which is discussed below. The main challenges in the legal, policy, and regulatory framework are the following (Government of St. Lucia 2010, p. 3). • LUCELEC’s monopoly over the energy sector bucks current developments in energy-sector reform which involve revising the market structure to encourage competition. The ESA should be revised to address this issue. 19 See http://www.lucelec.com/site/discover/operations.php. Accessed August 10, 2011. 83PDF Image | Energy Policy and Analysis Caribbean
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