Electricity bills going up

Barbados Light & Power (BL&P) customers will not escape higher electricity bills, as world oil prices continue to surge.

In a statement issued on Wednesday, the island’s lone power company, pointing to ongoing hikes in crude oil prices, explained that the armed conflict between major oil producer Russia and Ukraine is impacting the cost of the fuel it purchases from the Barbados National Oil Company Limited (BNOCL)  and other suppliers.

The company’s Director of Operations Johann Greaves made it clear this increased cost will be passed on to customers through the Fuel Clause Adjustment (FCA.)

“Global energy markets have been volatile for several months and crude oil prices surged past $100 a barrel recently for the first time in seven years. The cost of West Texas Crude internationally has increased from US$61/barrel at the end of March 2021 to US$120/barrel in March 2022. This is a concerning situation since it means a rising Fuel Clause Adjustment for our customers,” he said.

The FCA is the component of customers’ bills directly influenced by the cost of oil on the global market. It is a straightforward pass-through, and fuel is charged directly to customers as incurred.

However, Greaves pointed out that customers can help control their monthly bills by monitoring their usage.

“With this current situation, we urge our customers to be very efficient in their use of electricity and, further, in their use of fuel for transport. Small, simple changes in practices such as turning off unnecessary lights and unplugging unused electronics to lessen standby power can have an immediate impact on electricity costs. And when driving, fuel efficiency can be improved by easing up on rapid acceleration, high speeds, and sudden braking, and by avoiding idling,” the BL&P official advised.

He stressed that the situation is also a clear signal that Government must press on with its transition to renewable energy by 2030.

“Easing our reliance on foreign oil will enable Light & Power to bring greater stability and predictability of energy costs to customers, and supports energy independence for Barbados,” Greaves said.

BL&P said it would continue to work with The Ministry of Energy and other agencies to help manage the impacts of the crisis in Ukraine.

“Engagement and communication are a priority for Light & Power at this time, not only with our employees and customers but other key stakeholders as well,” said Greaves. “We will seek ongoing engagement with our partners in Government and all relevant agencies as we work in service to all Barbadians.” (BT/PR)