Last Updated on August 10, 2022, 8:03 AM AST by Anthony Morris
The Nevis Island Administration has committed to a monthly subsidy to the Nevis Electricity Company Limited (NEVLEC) to restrict the increasing fuel surcharge on electricity bills and relieve consumers on the island.
Premier Mark Brantley made the announcement recently, remarking that the government is aware of complaints made by citizens and residents on Nevis about the high cost of electricity. He pointed out that this increase in fuel surcharge on NEVLEC electricity bills directly results from the rising fuel cost globally. Nevertheless, the Premier apologized to the people of Nevis for the financial pressure they were experiencing.
“To put it in context, the average fuel price has moved from $7.98 per gallon in January 2022 to $14.68 per gallon in June 2022. So in just those six months, the fuel price has increased almost 100 per cent. So it is an untenable situation, and whilst that war in Ukraine continues, we do not see any immediate fix to this problem.
“We are committing to NEVLEC a subsidy amount of $1.75 million per month specifically to try and cushion this shock that NEVLEC itself is experiencing, and so. As a result, we are capping the fuel surcharge at 65 cents, which is significant because, as of [July 28], NEVLEC advises that the actual fuel surcharge is 90 cents. So we are trying to cap it at 65 cents by the government injecting $1.75 million per month into NEVLEC for it to pass on that relief to customers.”
He said the Cabinet would provide the aid to NEVLEC for three months in the first instance and then will make an assessment concerning providing that additional money to the electricity company to keep the 65 cents cap on fuel surcharge in place.
Over the past several months, the NIA has made a concerted effort to mitigate the effect of the increasing fuel cost on consumers. In March of 2022, NEVLEC invested EC $16 555,733 to acquire a new 3.8megawatt Wärtsilä generator at the Prospect Power Plant, which is significantly more fuel-efficient than its existing engines.
Premier Brantley also noted that in September of 2021, NEVLEC introduced a six-month rolling average of the actual fuel price to calculate the fuel surcharge cost. This mechanism helped to level out the wide fluctuations in the price of fuel.
“NEVLEC has, by so doing, sought to create a cushion so that the customers do not have to absorb the entire impact of the fuel surcharge. Incidentally, I should point out to you that that policy of NEVLEC has, in the last year, cost NEVLEC over $3.1 million by way of subsidy. So even though the bill is high, and we acknowledge that it is high and we apologize for it is high, it would have been even higher had NEVLEC not absorbed some $3.1 million of that.”
The Premier of Nevis urged public members to conserve energy to reduce electricity consumption in their homes. NEVLEC has provided some conservation tips for residential consumers, including using compact fluorescent bulbs which are four times more energy efficient compared to incandescent bulbs; turning off the lights in any room you are not using, and ironing large batches of clothing at one time to avoid wasting energy reheating the iron several times.
Mr Brantley assured that the The Nevis Island Administration remains committed to pursuing renewable energy resources, including wind and geothermal energy.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
