The new fuel rate, which is adjusted monthly, came into effect on Friday, 7 October 2022. It is the first decrease in the fuel rate for electricity since January 2021.
A direct result of the recent decline in world fuel prices, between September and October 2022, the electricity fuel rate moved from $0.8718 to $0.8359.
Making the announcement, Clive Hosten, Acting General Manager of Grenlec, said the reduction in world fuel prices is good news for everyone as it impacts the price of electricity as well as prices in every other sector. While welcoming the relief for Grenlec’s customers, Mr. Hosten noted that the fuel charge is still very high and strongly encouraged customers to continue to manage their electricity usage.
The fuel rate for electricity is an average of Grenlec’s fuel cost over the prior 3 months. This means that when world fuel prices change, the full impact of these decreases and increases are gradually passed to customers.
Taken together with the recent discontinuation of the 25% reduction in the non-fuel rate, the reduced fuel rate does not yet represent a drop in the overall unit price of electricity.
Notwithstanding this, the downward movement of world fuel prices after 20 months of constant increases is very positive.
Grenlec officials hope this downward movement in fuel prices will continue, allowing the Company to pass on even lower prices to its customers.