VINLEC subsidizes fuel in amount of $1.3 million

Customers of St Vincent Electricity Services Limited (VINLEC) will from February benefit from a decision by the company to subsidize the Fuel Surcharge Rate in the absence of the company’s hydroelectric plants.{{more}}

VINLEC’s hydroelectric facilities, which traditionally contribute an average of 18-20 per cent of the electricity generated annually, were severely damaged during the December trough system.

VINLEC wishes to inform customers and stakeholders that the Fuel Surcharge Rate applicable on electricity bills for the month of February 2014 is 48.33 cents per unit. In the absence of this subsidy to customers, the Fuel Surcharge Rate that would have been applied is 60.09 cents per unit. Be reminded that the Fuel Surcharge Rate is calculated based on the fuel consumption for the previous month.

Accordingly, VINLEC will in February be subsidizing the fuel surcharge in the amount of 11.76 cents per unit. In total, the company will subsidize fuel to customers to the value of $1.3 million.

During the month of January, the company spent 6.8 million dollars on fuel for the generation of electricity. This compares with $5.9 million in December 2013 and $5.6 million in January 2013.

Due to the damages sustained to the hydroelectric plants, hydro production in January 2014 was 3.37 per cent of what the production was in January 2013. The decision by VINLEC to cushion the impact of the increase in the fuel surcharge on customers as a result of not having the full use of its hydroelectric facilities will bring significant benefit to customers.

The company’s technical and civil works teams continue to work diligently to restore its hydroelectric facilities in the shortest possible time.