Dominica Electricity Services Limited

What it is

Dominica Electricity Services Limited is the only electricity utility in the Commonwealth of Dominica, an English-speaking Caribbean island of about 75,000 people covering 754 square kilometres. As a regulated monopoly, it holds sole responsibility for keeping the lights on across the entire country.

The company was incorporated on 30 April 1975 and operates under the Electricity Supply Act of 2006, which placed broad regulatory oversight in the hands of an Independent Regulatory Commission. Its core business — generating power and delivering it across the island — has barely changed in fifty years, but the fuel mix is about to shift dramatically.

Who owns it

Emera (Caribbean) Incorporated sold its majority stake in DOMLEC to the Government of the Commonwealth of Dominica, with the transfer of majority ownership effective immediately upon announcement. “With the government’s accelerated plan to bring geothermal energy to Dominica’s national electricity grid, we support their decision to purchase Emera’s 52 per cent interest in DOMLEC.”

The government holds its 52% through a vehicle called Dominica Power Holding Limited; the Dominica Social Security holds 20% of the ordinary share capital, while the remaining 28% is held by the general public and traded on the ECSE.

Who runs it

The Board of Directors appointed Mr. Dwayne Cenac as the company’s new General Manager in August 2024; an accomplished electrical engineer with extensive experience in the power sector, he assumed the role on September 2nd, 2024. Chairperson of the Board is Ms.

Francine Baron.

Carl Maynard serves as Chief Financial Officer (CFO) and Ian Ramrattan as Chief Operations Officer (COO). Cenac’s first full financial year in the role ended with the company back in the black — the first profit in three years.

The money, in plain words

In 2023, DOMLEC collected EC$112.1 million (US$112.1 million) in electricity revenue — but the cost of running aging diesel generators, maintaining the grid and servicing debt pushed the company to a net loss of EC$1.78 million (US$1.78 million), a net margin of –1.6% (our calculation). For the 2024 financial year, DOMLEC reported a profit of EC$1.99 million (US$1.99 million), reversing three years of losses — a thin but symbolically important margin.

The shareholders’ equity cushion — the net worth of the business on the books — stood at EC$89.2 million (US$89.2 million) at the end of 2023, giving a return on equity of –2.0% that year (our calculation); 2024 saw that flip to a small positive. Fuel costs — diesel — are the single biggest lever on profitability, which is why the pivot to geothermal matters so much financially.

What it is doing now

General Manager Dwayne Cenac says growth in sales and the performance of renewable energy were the main factors behind the return to profit. The turnaround plan included commissioning 3 × 1.6 MW generator units leased from the government, improved maintenance scheduling, and securing the efficient deployment of 3 MW of leased capacity; despite adverse weather and spare-parts delays, the company delivered more reliable service in 2024 than in the prior year.

The advent of geothermal power is a significant milestone in the company’s transition to 100% renewable generation by 2030, and in 2024 important advancements were made on projects complementary to the geothermal initiative. Cenac says geothermal energy will have a major impact on the cost of electricity for consumers — lower fuel bills would widen margins structurally, not just cyclically.

What to watch

• Geothermal timeline. The 2030 target for 100% renewable generation depends on a geothermal project that has been years in the making; delays would keep the company exposed to volatile diesel costs and thin margins.
• Tariff review. The Independent Regulatory Commission began a public consultation in July 2024 to agree on a suitable cost-of-capital rate for DOMLEC — the outcome sets what the company is allowed to charge, and therefore its long-run profitability.
• Capital burden. The company spent EC$13.8 million (US$14 mn) on infrastructure in 2023 alone while running an EC$4.7 million (US$5 mn) bank overdraft; the planned EC$46 million (US$46 mn) grid upgrade to carry geothermal power will require careful financing.
• Government as owner. With 52% state ownership and a regulator that controls tariffs, the government sits on both sides of the table — a structural tension that investors in any small-island utility should weigh carefully.

This is news, not investment advice.