APUA is to reintroduce a fuel variation charge on electricity bills from July 1.
The state utility firm’s spokesperson said the charge would fluctuate to reflect volatility in oil prices. So, while some months might see an increase in bills, the company says on the occasions the fuel rate it pays its supplier decreases, it will in turn pass on those savings.
During the Covid-19 pandemic, APUA reduced the fuel variation charge by 10 percent and continued the early payment discount of an additional 10 percent to support customers.
However, post-pandemic, the deduction was not adjusted to the pre-pandemic rate, leading to significant over-subsidisation of the continual increases in fuel charges, which has had a substantial impact on the overall operational costs of electricity, a release said.
Spokesperson Anazette Reynolds explained that residents might notice the fuel variation charge changing from time to time on their electricity bills.
“Every month or day that APUA purchases fuel, the fuel that is charged to us is at the going rate. So, what customers would see now on their rate for bills that would be produced from July of 2024, they will notice that the fuel variation charge, it will not be the same rate as it is now,” Reynolds stated.
The fuel charge is calculated based on the price of oil.
For every 10 cent increase or decrease in the cost per imperial gallon of fuel purchased, APUA increases or decreases the cost per kilowatt hour by one cent.
Usage is then multiplied by the current rate.
APUA says electricity bills issued after July 1 will include a monthly summary detailing the calculated fuel variation costs.
The 10 percent discount for early payment of bills will remain in place.
Electricity Business Unit Manager, Andre Matthias, highlighted the unit’s efforts in implementing alternative power sources and transitioning to a cleaner energy mix in the network, along with cost-cutting initiatives to ensure the provision of reliable and affordable electricity to customers.
“Antigua’s current peak load is around 62 megawatts, with 11 megawatts of installed solar systems being a part of the generation mix, showcasing our commitment to adopting clean energy,” Matthias said.
Meanwhile, Minister of Public Utilities Melford Nicholas reaffirmed the government’s commitment to cleaner energy and hailed the progress of the LNG power plant, set to be commissioned later this year.
