As electricity costs continue to rise across Saint Lucia, the Saint Lucia Electricity Services Limited (LUCELEC) says increasing global oil prices and international instability are driving higher fuel charges for consumers.
LUCELEC Corporate Communications Officer Carmy Joseph, talking to the press this week, explained that the fuel surcharge applied to customers’ bills has steadily increased over the past several months due to the growing cost of fuel used to generate electricity locally.
“The fuel surcharge applied to bills this month is $0.31 for every unit consumed, an increase from the $0.25 applied to every unit sold in April and the $0.07 applied in March,” Joseph stated.
According to Joseph, the adjustments are directly linked to developments on the international energy market, particularly ongoing geopolitical tensions overseas.
“This change continues to be driven by current higher global oil prices affecting the cost of fuel used to generate electricity locally,” she explained.
Joseph noted that LUCELEC purchases fuel regularly from an international supplier based locally, leaving the company exposed to fluctuations in global fuel prices.
“LUCELEC purchases fuel every two to three days from its locally based international supplier, which means changes in global prices led by this continued global instability, including the ongoing conflict in the Middle East, continues to disrupt international oil markets, leading to significant increases in fuel prices worldwide and affecting customer bills,” she said.
The communications officer stressed that the fuel surcharge is not a profit-making measure for the company but rather a direct reflection of fuel costs.
“Fuel surcharge remains a transparent cost-pass-through mechanism that reflects the actual cost of fuel used to generate electricity and does not generate profit for LUCELEC,” Joseph said.
She further clarified that the company’s basic electricity rates have not changed.
“Supposedly, these rates have not been increased. The fuel surcharge is applied to the basic energy rate of each unit that electricity consumers and is reflected on customer bills,” Joseph explained.
LUCELEC also indicated that it continues to publish the monthly surcharge figures publicly in keeping with regulatory obligations.
“In keeping with regulatory requirements, LUCELEC publishes the monthly fuel surcharge on its website,” Joseph added.
The explanation comes amid growing public concern over the impact of rising utility costs on households and businesses already facing increased living expenses.