Light & Power: Extra generation will have minimal impact on bills

Barbados Light & Power on Monday sought to calm fears of rising electricity bills, saying a recent Fair Trading Commission ruling permitting temporary extra generation will add only about $1.25 a month for the average household and not take effect before September.

The decision, which approves the extension and addition of temporary electricity generation, has sparked widespread discussion regarding potential increases in monthly electricity bills.

Light & Power management acknowledged that the announcement comes at a sensitive time for consumers already navigating economic challenges. 

Its immediate priority was to offer transparency and dispel misconceptions regarding how the FTC’s decision will translate to consumer billing, it said.

“We understand the concern many customers are feeling following recent reports about electricity costs and temporary generation. 

“We recognise that households and businesses are already managing rising living expenses, and we want to provide clear information about what the Fair Trading Commission’s decision means for customers.”

A key point the company clairified is that the bulk of the approximately 11 megawatts of temporary generation acquired is already integrated into the national grid since 2024.

The FTC ruling effectively allows these units to continue running through 2027.

The extension of these units comes with no additional costs to consumers, meaning no new or sudden charges will appear on bills for the existing 11 MW capacity, the company said. 

But the FTC decision also greenlights an additional six MW of temporary capacity.

The company said this expansion is a strategic move to fortify grid reliability, particularly as Barbados enters a vulnerable period of the year.

“This represents a limited and targeted addition aimed at reducing the risk of outages and minimizing reliance on existing generation units that utilise higher cost fuel sources,” the company explained, noting that the extra capacity is vital “as we prepare for the upcoming hurricane season.”

Addressing the bottom line for the average household, Light & Power disclosed that the introduction of the extra six MW will have a minimal financial impact.

The estimated cost associated with this additional capacity is projected at roughly 0.4 cents per kilowatt-hour (kWh).

For the average residential consumer, this translates to an estimated increase of approximately $1.25 on their monthly electricity bill.

The electric company also sought to reassure the public that this adjustment will not be immediate, stating that the increase is not expected to take effect before September.

It also took the opportunity to stress the logistical realities of managing a Caribbean island’s energy infrastructure.

Because Barbados operates an isolated electricity grid, it cannot rely on neighbouring territories or an interconnected regional grid for emergency power if local systems fail.

“Barbados operates an isolated electricity grid, meaning there is no external backup supply,” Light & Power said.

“As a result, adequate generation must be available locally at all times to ensure homes, businesses, hospitals and essential services continue to receive power, even during peak demand, maintenance, or unexpected equipment failures.”

These temporary units are serving as a bridge to the future rather than a permanent fixture, said Light and Power.

They are designed to maintain system stability while transitioning towards broader green energy goals, preventing severe system strain and reducing the probability of rolling blackouts, it added.

“The deployment of temporary generation units serves as an effective interim strategy to safeguard customers as more sustainable, long-term energy solutions are implemented,” the company noted, reaffirming that the measures align with the government’s overarching renewable energy transition policies.

As the island prepares for the heightened demands of the summer months and the Atlantic hurricane season, Light & Power pledged to balance operational stability with consumer affordability.

“We remain committed to providing customers with a safe, reliable and efficient electricity service, and to ensuring that decisions are made in the best interest of customers and the country,” the statement added. 

 (RR)