Residents of St. Kitts recently got a first-hand view of the impact of fluctuations in the world market fuel prices. For many years, Government has been heavily subsidizing the cost of fuel, a situation which officials indicated could no longer continue. Last November, a fuel surcharge system was activated. The surcharge was legislated since the year 2000 under Statutory Rules and Orders (SR&O) No. 15 of 2000. Officials explained that it became absolutely necessary to do so given the impact of global economic trends, specifically the escalating costs on fuel. The fuel surcharge is designed to fluctuate and reflect the price at which fuel stocks are purchased.
Prior to the adjustment, electricity charges in St. Kitts remained at $0.37 per unit since 2000, notwithstanding rapidly increasing costs of fuel and operations over the years. All other OECS countries advanced in this direction prior to St. Kitts. The adjusted energy charges per kwh of electricity include a charge of $0.85 in Antigua, $0.78 in St. Vincent, $1.02 in Montserrat, $0.73 in Grenada, $0.66 in Dominica, and $0.51 in Nevis.
The new charge for fuel at the pumps was adjusted to $0.51 as of October 31, 2005. Minister of Works and Public Utilities Hon. Dr. Earl Asim Martin expressed it best when he said, "These increases reflect the reality of the increasing cost of fuel in the generation of electricity, as well as the constraints of the small developing vulnerable states of the OECS." The minister said that while the Government could seek to alleviate financial strain by offering the lowest possible rates, it could not be oblivious to the economic realities.
In light of the realities, the minister has called on residents to be more mindful of energy consumption by avoiding wastage and unnecessary use of facilities that consume excessive energy. He also called on citizens to conserve by reorganizing priorities and being more prudent in planning. The Electricity Department also suggests that people invest in energy-efficient appliances and devices.
The fuel cost adjustment factor determines the price customers pay for electric power and energy as the price of fuel on the world market rises and falls. However, locally, the cost of fuel does not fluctuate like the daily prices at the U.S. gas pump. Instead, it is set and calculated to recover the purchase cost of stocked fuel.
A base rate of $3.38 per gallon of fuel was used to establish a new tariff structure for electricity energy charges. With the rising fuel price, only part of the cost was covered by the existing tariff. The fuel surcharge covers the difference between the actual fuel cost and the base tariff. Every increase of fuel cost of 12¢ causes a corresponding 1¢ increase on the energy charge.
To calculate the fuel charge, the average fuel cost from the previous month is obtained from the supplier. The base rate is subtracted from the cost and divided by 0.12, which is the 12¢ increase for each 1¢ that would be added to the energy charge (see details below).
Eg. Fuel Surcharge Calculation
Average fuel cost from the supplier: $6.137
6.137 - 3.38 = 2.76 and
For every 12¢ increase, 1¢ is added for energy cost
2.76 = 0.23¢
.12
Calculation of an Electricity Bill
(Assume that your electricty consumption was 376 kWh)
1. Energy Charges:
First 50 kWh units » 50 x .32 = 16.00
51-75 kWh units » 75 x .35 = 26.25
75 - 376 kWh units » 251 x .37 = 92.87
Total Energy Charges 135.12
2. Standing Charges 18.00 (Used over
241 kWh units)
3. Fuel Charges » 376 kWh x .23 86.28
TOTAL CHARGES $239.68
Energy Saving Tips
To help keep your electricity bill as low as possible try implementing combinations, if not all, of the following
Use the energy saving fluorescent type bulbs in your home since normal incandescent light bulbs burn more electricity.
Don't turn fluorescent lights on and off frequently. You will soon need a new bulb.
You may save about $3.00 per month using a 40-watt bulb instead of a 100-watt bulb. The downside is that your eyesight might suffer.
Purchase models of refrigerators that save energy.
Do not open and close your refrigerator more than necessary and make sure the door seals are working properly.
You can save electricity by turning down your freezer setting, never take it off completely as you run the risk of spoiling your frozen foods.
Don't leave your electric water heater switched on permanently. Buy a timer and for as little as two hours a day you will have sufficient hot water for your general needs.
Where possible, install solar water heaters.
Make sure the water level in your electric kettle covers the element ever time you use it. By trying to save a few seconds, you reduce the life of the element.
