The market structure of a sector refers to the number of firms in the sector and the ways in which these firms interact. Market structure is typically influenced by:

  • The size of the market.
  • The presence of barriers to the entry of new firms.
  • Restrictions on market concentration (the share of the market served by the four largest firms).
  • Restrictions on vertical integration (ownership of all aspects of production, sales and delivery for a product or service by a firm).

Market Structure of the Energy Sector

The energy sector comprises a vertically integrated utility, The Saint Lucia Electricity Services Limited (LUCELEC) which generates, transmits and distributes electricity in Saint Lucia. LUCELEC is a publicly traded and owned entity with an ownership structure as follows:

With the passage of the Electricity Supply (Amendment) Act in 2016, generation of electricity from renewable energy resources is now open to competition. This means that while LUCELEC no longer retains a monopoly on all generation it still retains a monopoly on the generation of electricity from fossil fuel sources, transmission and distribution until the year 2045.

Distributed Generators: A small percentage of the electricity generated in Saint Lucia is currently produced by domestic and commercial customers with installed solar photovoltaic systems. These distributed generators are currently served under a net metering programme which will be subject to review when the sector legislation is passed.

Lucelec's Ownership Structure

  • GOSL
  • Emera (St. Lucia) Ltd.
  • First Citizens
  • NIC
  • CCC
  • Other

Market Structure of the Water Sector

The water sector comprises a vertically integrated monopoly, the Water and Sewerage Company Inc. (WASCO). WASCO, which emerged from the corporatization of the former Water and Sewerage Authority (WASA), was incorporated under the Company’s Act 1996 as Company No. 136 of 1999. While the entity is no longer a government department, it is 100% government owned.

Other Water Suppliers: Several private entities are also engaged in water supply and distribution services through the use of desalination plants and water trucks for delivery of potable water.

Sewerage Service Providers: Private entities also provide sewerage services to consumers who require emptying their septic tanks.