BASSETERRE, St. Kitts – CITIZENS may soon benefit from a decrease in or removal of the electricity fuel surcharge, according to Minister of Finance Hon. Dr. Timothy Harris.
Of the EC $12 million collected on average every month by the Electricity Department’s billing office, an estimated six to eight million is due to the surcharge.
According to Harris, the additional charge was introduced at a time when fuel prices were increasing at a “very high and extortionate” rate. Since that time, the government has made considerations to accommodate consumers so that the burden of expense would not be placed entirely on them.
“The matter has always been one which the government reviews as part of an exercise to come to grips with the challenges that we face. Given the circumstances with fuel prices, it is necessary for the matter to be under constant revision,” Harris told SKNVibes.
Preparations for the surcharge were first made in October 2005, and it was subsequently implemented in January 2006. As of this year, the additional charge applies EC $0.18 for every unit of electricity used.
Since its implementation, consumers have expressed frustration over the charge being added to their bills, especially as the cost of living has continued to increase.
SKNVibes contacted Systems Analyst Dwyer Edmeade at the Electricity Department, who explained that the surcharge is not held at a fixed rate, but rather is adjusted on a monthly basis.
He said that a number of variables factor into the amount of the surcharge, including the price of fuel on the world market and fuel consumption.
In response to widespread concern over the additional tax on the public, the government put a cap on the surcharge at 50% of the current bill for residential use. It also exempted individuals using less than 150 units of electricity monthly, bringing some measure of relief to the population.
“For the first 150 units of voltage used per month, consumers will be exempted from fuel surcharge. In 2008, gas prices went up and if we were to continue on the trend following market price, people would have been basically paying the same for surcharge as their current charge,” Edmeade explained.
Such initiatives ran the government into expenses in excess of EC $16 million, and a move to reduce or remove the surcharge would increase expenses for the government even further for it to subsidize the costs.
Although no timetable was given as to when changes to the surcharge would take place, Harris made it clear that any changes made would be beneficial to the general public. He added that the public would be informed in a timely manner.
“The adjustments have always been to bring relief to people. Any revision in regards to the adjustment [of the surcharge] will be communicated to the public once the government is ready to move in this matter,” Harris said.
