The Barbados Light & Power Company (Light & Power) has delivered great news to its customers that August bills will indeed be lower for five reasons.
1. Energy Bridge online
First off, Managing Director Roger Blackman has said:
“Light & Power’s new Clean Energy Bridge (CEB) plant at Trents, St Lucy was commissioned on June 28 and, starting this month, is delivering an overall net decrease in fuel costs. For us, the CEB has always represented a commitment to our more than 128,000 customers to stabilize electricity fuel costs and maintain system reliability as the island transitions to a renewable energy future.”
2. Oil price drops
Secondly, global oil prices are also impacting the fuel component customers’ electricity bills for August.
“Over the past 18 months, we have seen a steady rise in global oil prices, resulting in sometimes dramatic increases to the fuel charge on electricity bills. We know it hasn’t been easy on our customers. Last month, we started to see the impact of the declining international oil price and we were pleased to see that the price, which directly impacts the FCA charged to customers, continued to drop and is now in the region of US $90 per barrel from a high of US $119 per barrel in March.”
3. Lower Fuel Adjustment Clause
The Fuel Clause Adjustment (FCA) for August 2022 is 39.0819 cents per kilowatt hour (kWh), a decrease of 17% over July’s FCA of 47.0855 cents per kWh.
As a result of the operation of the CEB and the lower international oil prices, for the average residential customer who uses around 250 kWh per month, the decrease in the FCA equates to a reduction of about $24 in the fuel portion of their August bill.
4. 10 per cent less in VAT
Blackman also noted that “Effective in time for August electricity bills is the Government’s reduction in VAT from 17.5% to 7.5% on the first 250 kWh consumed per month, bringing an additional $15 in savings for customers using 250 kWh or more in a month. With the VAT reduction factored in, these customers can expect to see a drop of about $39 on their August bill as compared to July.”
5. Discount (This one depends on customers)
Light & Power reminds customers of the early payment discount of 10%, which provides a further opportunity for monthly energy cost savings.
For more information, visit the company’s website at www.blpc.com.bb.