The fuel surcharge for electricity bills will increase due to rising global oil prices

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St. Lucia Electricity Services Limited (LUCELEC) said in a statement on Friday that despite its fuel price hedging program and renewable energy efforts, the sharp rise in oil prices will increase the fuel surcharge for utility bills. of electricity.

The statement noted that the war in Ukraine is affecting the price and availability of fuel around the world, causing the price of oil to more than double.

He quoted LUCELEC chief executive Trevor Louisy as saying that LUCELEC can “lock in” the price it pays for some of its fuel through its hedging program.

He explained that this means that what the company pays for the percentage covered remains the same despite the price of oil on the world market.

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“The balance of purchased fuel is determined by the current market price. As a result, when there are significant changes in the price of oil, as is currently the case due to the ongoing unrest in Ukraine, this will affect the fuel surcharge and what customers pay for electricity on a monthly basis,” Louisy revealed. .

Fuel price hedging is one of the strategies used by LUCELEC to minimize significant fluctuations in what customers pay monthly for electricity.

“The price paid by LUCELEC for fuel is factored into customer bills through the fuel surcharge or fuel cost adjustment that is applied to the units of electricity that customers use each month. It is added to the Basic Energy Tariffs applied to each unit of electricity sold by LUCELEC”, specifies the company.

LUCELEC publishes the monthly adjustment of the cost of fuel in the newspaper La Voix and on its website in compliance with reporting obligations.

Describing the current fuel crisis as a very difficult situation, caused by external factors over which LUCELEC has no control, the utility said there is something customers can do: use energy efficiently wisely.

In this regard, the company announced its intention to unveil an energy efficiency campaign in the coming days using various media platforms.

Additionally, LUCELEC said it will continue to monitor the global situation and keep customers informed on how their electricity bills may be affected.

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