Dominica Electricity Services Ltd.

What it is

Dominica Electricity Services Limited — universally known as DOMLEC — is the sole electricity utility in the Commonwealth of Dominica. Its principal activity is the generation, transmission, distribution and sale of electricity; it operates under an exclusive 25-year transmission-and-distribution licence and a 25-year non-exclusive generation licence, both granted by the Independent Regulatory Commission in January 2014.

The company was incorporated as a public limited liability company on 30 April 1975, domiciled in the Commonwealth of Dominica. Dominica is the third-largest English-speaking island in the Caribbean at 754 square kilometres, with approximately 75,000 inhabitants.

Who owns it

Dominica Power Holding Limited — a vehicle purchased by the Government of the Commonwealth of Dominica on 1 April 2022 — owns 52% of the ordinary share capital; the Dominica Social Security owns 20%; and 28% is held by the general public.

The government bought the 51.9% stake for US$5.0 million (EC$13.5 million), which Prime Minister Skerrit described as 28.6% below the listed market value of EC$3.50 (US$4)per share at the time of the deal. The seller was Emera (Caribbean) Incorporated (ECI), a Canadian-linked energy group, and the transfer of majority ownership was effective immediately.

Who runs it

The Board of Directors appointed Mr. Dwayne Cenac — an experienced electrical engineer — as General Manager (the company’s chief executive role), effective 2 September 2024. The Chairperson of the Board is Ms.

Francine Baron, who noted that Cenac takes charge at a critical moment as Dominica transitions from fossil-fuel to renewable — particularly geothermal — generation.

The CFO is not disclosed in available sources. Cenac’s immediate predecessor as General Manager was Mrs. Bertilia McKenzie, who departed in March 2024 after nearly a decade leading the company.

The money, in plain words

DOMLEC brought in XCD 112.1 million (USD 112.1 million) in revenue in 2023 — flat year-on-year, a revenue change of just –0.1% (our calculation) — but could not turn that into profit. After paying fuel costs, engineering, depreciation and finance charges, the company posted a net loss of XCD 1.78 million (USD 1.78 million), a net margin of –1.6% (our calculation).

Shareholders’ equity — the book value of what owners hold — was XCD 89.2 million (USD 89.2 million) at year-end 2023, and has shrunk for two consecutive years as losses erode retained earnings; the return on equity was –2.0% (our calculation). The cash position was also negative — a bank overdraft of XCD 4.7 million (USD 4.7 million) at year-end — while the company invested XCD 13.8 million (USD 13.8 million) in new infrastructure during the year.

DOMLEC’s generation licence is non-exclusive, meaning regulators can allow others to generate power, but in practice it remains the island’s only supplier. The fuel bill — diesel — is by far its largest cost and the chief reason margins are thin or negative whenever oil prices rise.

What it is doing now

The year 2023 was defined by a generation capacity shortfall as the company tried to manage its transition to renewable energy; in the second half of the year customers suffered persistent load-shedding across the island. In early 2024 DOMLEC formulated a stabilisation plan that included installing and commissioning three leased 1.6 MW diesel units provided by the government, and by the end of 2024 the company was providing noticeably more reliable service than it had the year before.

The prospect of geothermal power is described by the company as a significant milestone in its push toward 100% renewable generation by 2030, with important project advances made during 2024. The target has been a 10 MW geothermal plant developed in partnership with the Dominica Geothermal Development Company.

What to watch

• Geothermal timeline: If a 10 MW geothermal plant reaches the grid, DOMLEC’s fuel bill — its biggest cost — collapses, and margins could recover sharply. Delays keep it burning diesel and losing money.
• Rate review: As of mid-2024, the Independent Regulatory Commission had begun a public consultation to set a new permitted return (WACC) for DOMLEC — the outcome will determine how much of its costs it can recover from customers.
• State-ownership risk: The government controls 52% and sets energy policy. If the two agendas — cheap bills for voters and viable returns for shareholders — diverge, minority investors (the free-float 28%) bear the cost.
• Balance-sheet stress: Two years of losses, a negative cash balance, and heavy capex mean DOMLEC will likely need fresh borrowings or a tariff increase before geothermal arrives.

This is news, not investment advice.