BASSETERRE, ST. KITTS, FEBRUARY 20TH 2006 Cabinet has instructed the Ministry of Public Utilities to revisit the formula calculating the fuel surcharge.
The fuel surcharge was introduced as a result of the escalating world market price for oil, but a mechanism is in place to protect the poor and vulnerable, St. Kitts and Nevis Prime Minister and Minister of Finance, the Hon. Dr. Denzil L. Douglas said.
In its attempt to respond to the important issues of the day in an environment where there is serious indebtedness that we have to make sure that activities of the government - which were heavily subsidized in the past, especially in the provision of services - that we have to be realistic and address these areas in a very practical way, said Dr. Douglas, who noted that Government has been for decades subsidising the electricity service to residents and the business community.
We recognise that the fuel bill at the Electricity Department that was budgeted for last year, by July of that year, the entire budget was used up, yet the price of fuel which is brought from overseas continues to rise, he explained.
Government which has been absorbing the increases could not continue to do so as it would have ruined the economy of St. Kitts and Nevis and as a result the fuel surcharge was seriously considered by the government, although some subsidy still exists.
Prime Minister Douglas said his St. Kitts-Nevis Labour Government has made provisions that the very poor would receive protection and would not have to pay the increases unnecessarily.
We have also recognised that in situations, where people who normally would have been able to pay the fuel surcharge and the electricity bill without any difficulties and who are now experiencing great difficulties, that we should probably revisit the formula that has been used, said the St. Kitts and Nevis leader.
He said that the Ministry of Social Development, which has responsibility for poverty alleviation, was created to deal with issues in times like these.
Officers in the field would have gone in the communities and identify those elderly people who are living alone and ensure that they were protected and so the increase would not have affected them unnecessarily, said Dr. Douglas.
He also gave as an example retired people who receive assistance from persons who have been playing their electricity bills. We would rely on the advice of the field officers in the Ministry of Social Development to guide us as to who can be exempted, said Prime Minister Douglas, who reiterated that the relevant department in the Ministry of Social Development is responsible to conduct the needs assessment, report back to the Ministry of Finance and the Ministry of Utilities and exempt those persons.
If there is anyone who falls within that category and who has had to suffer the disconnection of your electricity because you are unable to pay the bill, please immediately report it to some government official, your parliamentary representative, someone in the area the nurse or the visiting officer and we shall make the necessary adjustment, said Prime Minister Douglas.
