The Anguilla Electricity Company Ltd. (ANGLEC), advises that the Fuel Surcharge will be adjusted from 20¢ per kilowatt hour (kWh) to 31¢ per kWh on October 15th, 2018. This adjustment is a direct result of the continued increase in fuel prices world-wide.
Kindly note, the Fuel Surcharge mechanism is designed for recovering the costs of fuel used I electricity generation and paid to our fuel oil suppliers. All Adjustments to the Fuel Surcharge are applied in accordance with the Electricity (Rates and Charges) Regulations.
Understanding the Fuel Surcharge Adjustment
Volatile global market conditions cause the cost of fuel oil used in electricity generation (and many other industries) to rise and fall. The Fuel Surcharge Adjustment regulations allow for both reductions and increases in costs to be passed on to consumers, making it one of the most fair and efficient means of sustaining service, in spite of volatility.
ANGLEC typically absorbs most increases in fuel costs to provide the most affordable rates for Anguilla. However, the company must adjust the fuel surcharge as the financial burden becomes unsustainable.
Calculating the Surcharge Adjustment
Legislation regulates that ANGLEC charge 0.01 cent per kWh for every 0.10 cents increase in fuel cost after $3.64 per imperial Gallon (IG). This mechanism allows ANGLEC to recover the cost of fuel over time with consideration for the fluctuating fuel prices.
Why now?
Without making this adjustment now, we would be buying fuel at the inflated cost and not recovering. This would significantly hinder the company’s operating ability. The current adjustment to 31¢ per kWh represents ANGLEC’s considered cost sharing under the current fuel price inflations. Earlier in the year, fuel prices began to increase and have continued to date. Over the past few years, ANGLEC has absorbed over 60% of the fuel price increases, with only one recent adjustment.
With the impending surcharge adjustment, ANGLEC will continue to absorb a portion of the current fuel costs to soften the impact to our customers in these difficult economic times. For example, based on the cost of fuel as of September, the current fuel surcharge adjustment should be 0.43 cents per kWh.
ANGLEC Fee Structure Breakdown
G.O.A ENVR LEVY (7%) EC$0.01
41-25,000 UNITS (KWH) EC$0.63 per kWh
FUEL SURCHARGE EC$0.31 per kWh (previously$0.20)
Applying the Fuel Surcharge Adjustment
Considering the structure above, in a household that uses an average of 300 kWh, bills will translate to roughly EC$279.01/month under the impending adjustment as opposed to EC$249.00/month prior.
Throughout all rate adjustments, we encourage our customers to employ energy conservation methods and to be proactive in all matters regarding their energy bills. For more information and tips, please give us a call, or visit our website (www.anglec.com) or blog via anglec.com/theplug.
We are committed to providing our customers with competitive and affordable rates and will continue to actively monitor the price of fuel for changes and cost savings.
For further updates, connect with our Facebook page (www.facebook.com/AnguillaElectricity).
