Barbadians will soon see electricity higher bills, the Barbados Light & Power Company Ltd warned on Thursday, blaming rising global oil prices for pushing up the cost of electricity generation amid the ongoing conflict in the oil-rich Persian Gulf region.
In a statement, the utility said it was closely monitoring global oil markets as higher fuel prices continue to influence electricity production costs domestically.
Barbados generates about 80 per cent of its electricity using fuel bought on the international market, meaning changes in global oil prices are reflected in the fuel portion of customers’ electricity bills.
The price of benchmark West Texas Intermediate crude oil rose from about US$64 per barrel last month to significantly higher levels earlier this week, before settling around US$87 per barrel.
These fluctuations affect the cost of fuel purchased during the month and will begin to appear in customers’ bills through the Fuel Clause Adjustment (FCA).
According to Light & Power, the FCA has increased from 28.9949 cents per kilowatt hour in February to 35.8256 cents per kilowatt hour in March. The March adjustment was calculated using a benchmark price of US$75 per barrel at the time it was set.
For an average household using 250 kilowatt hours of electricity, the increase represents an estimated $17 rise in the monthly bill.
The company stressed that the FCA is not a new charge, but a standard component of electricity bills that reflects the actual cost of fuel used to generate power.
“The FCA… represents a direct passthrough of the actual cost of fuel used to generate electricity, with no markup added by Light & Power,” the statement said.
Vice-President of Operations Johann Greaves acknowledged that rising electricity costs are adding to the financial pressures already facing many households and businesses.
“We understand that many households and businesses are already managing higher costs, and any change in electricity bills adds to that pressure,” Greaves said.
“With global oil prices remaining volatile, we know these changes are challenging. That is why we remain committed to tracking global conditions closely and communicating with customers as early and as clearly as possible, so they can plan and make informed decisions during this period.”
While global developments remain outside the company’s control, Light & Power said it continues to support national efforts to reduce Barbados’s long-term exposure to international fuel price fluctuations.
These efforts include expanding the use of renewable and diversified energy sources as part of the island’s broader energy transition.
In the meantime, the company is encouraging customers to reduce electricity consumption where possible to help limit the impact on monthly bills.
Small practical changes, particularly in the use of high-energy appliances, can help households manage electricity costs during periods of rising fuel prices, the company added.
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