Thursday, September 29, 2022

Fuel Surcharge For Electricity Bills To Go Up Amid Global Oil Price Hikes

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The St. Lucia Electricity Services Limited (LUCELEC) announced in a release Friday that despite its fuel-price hedging programme and renewable energy efforts, the sharp hike in oil prices will increase the fuel surcharge for electricity bills.

The release noted that the war in Ukraine is affecting the price and availability of fuel globally, resulting in the price of oil having more than doubled.

It quoted LUCELEC Managing Director Trevor Louisy as saying that LUCELEC can “lock in” the price it pays for some of its fuel through its hedging program.

He explained that this means what the company pays for the percentage hedged remains the same despite the oil price on the world market.

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“The balance of the fuel purchased is determined by the current market price. As a result, when there are significant changes in the price of oil as is occurring right now because of continued unrest in Ukraine – it will affect the fuel surcharge and what customers pay for electricity on a month-to-month basis,” Louisy disclosed.

Fuel price hedging is one of the strategies the LUCELEC uses to minimise significant fluctuations in what customers pay for electricity monthly.

“The price LUCELEC pays for fuel is factored into customer bills through the Fuel Surcharge or the fuel cost adjustment that is applied to the units of electricity customers use every month. It is added to the Basic Energy Rates applied to each unit of electricity LUCELEC sells,” the company stated.

LUCELEC publishes the monthly fuel cost adjustment in the Voice newspaper and on its website in keeping with reporting requirements.

Describing the current fuel crisis as a very difficult situation, caused by external factors over which LUCELEC has no control, the utility said there’s something customers can do: use energy wisely.

In this regard, the company announced plans to unveil an Energy Efficient campaign in the coming days using various media platforms.

In addition, LUCELEC said it would continue to monitor the global situation and keep customers up to date on how their electricity bills may be affected.

 

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

8 COMMENTS

  1. Good for them my meter has cob webs on it and is stuck at $62 for the last 3yrs. Those solar panels were best thing I ever spent my money on look now everybody bawling. I wish I had water on the land I have enough power to pump it. Governments of the Caribbean needs to encourage cheap alternative sources of energy that’s in abundance look how the world running these days. Sun and breeze we have endless of that God provide already.

  2. I have a solar panel which usually charges during the day and gives me light at night. Im thankful for it. I dont really use Lucelec electricity. The government needs to invest more on sustainable development, like make use of solar energy, wind energy and hydroelectricity. Teach our ppl to go back to the basics.

  3. We live in the tropics! We have SUN all the time. St Lucia should’ve gone SOLAR years ago. There was a time when LUCELEC wanted to block people adding solar power to their homes. This archaic method and thinking must stop. We have FREE SUN, FREE WIND … it is time for St Lucia to be harnessing these FREE elements!! This is NOT rocket science. This fuel for electricity is a certified pollutant – in the environment and in our pockets. THIS – SHOULD NOT BE, NOT IN THIS DAY AND AGE!! Time for a change for the better of this country.

  4. Oh wow, these vultures are so quick to take advantage of any situation to squeeze the last cent from the struggling man. When fuel prices decrease you never heard of decrease in fuel surcharge. They claim that they are doing bulk buying so the fuel they have was purchased at the higher price. It takes a year for them to consume that fuel but as soon as the prices increase, we have to increase surcharge. Does Lucelec and government really understand that they are making the consumer pay twice for electricity consumption.

  5. Somehow fuel surcharge didn’t disappear when fuel was trading for dirt cheap. Government need to subsidise home solar and/or remove all duties and taxes on all such residential equipment. People need a break from this lucelec tax. No matter what happens with fuel prices this tax never goes down and always up.

  6. World leaders are the problem. They are the ones damaging the human race and are the root cause of every problem of society. They make dumb decisions and the ordinary man and woman pay for it. Stupid war, stupid respond to the Wuhan virus/ Covid19. Stupid decisions on how society should be designed. Just dumb decisions so only the elite or beauracrat can live like kings and queens and to worshiped, whereas the normal man has to continue to slave his or her self to money.

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