Fuel Surcharge Adjustment Notice – June 2020

May 22nd, 2020 – Fuel Surcharge Adjustment Notice  

The Anguilla Electricity Company Ltd. (ANGLEC), advises that the Fuel Surcharge will be adjusted from 21¢ per kilowatt hour (kWh) to 8¢ per kWh on June 1st, 2020.  This reduction marks the third consecutive decrease from ANGLEC since 2018,  and reflects a drop of 13¢ from the previous rate reduction in July 2019.

Kindly note, all adjustments to the Fuel Surcharge are applied in accordance with the Electricity (Rates and Charges) Regulations. The new rate of 0.08¢ is significantly below what is prescribed under the legislation. While fuel prices continue to fluctuate, they have remained lower than the previous rates, on average allowing for a notable reduction in fuel costs.

This adjustment is one ANGLEC is pleased to make as an additional measure to pass on savings to customers during this difficult pandemic period (ANGLEC also discontinued late fees during Anguilla’s lock-down period). As we monitor the skewed global trends amid economic volatility caused by the Covid-19 Pandemic, we advise all customers that further adjustments (increases or decreases) may be issued as the governing legislation requires.

Understanding the Fuel Surcharge Adjustment 

The Fuel Surcharge mechanism is designed for recovering the costs of fuel used in electricity generation and paid to our fuel oil suppliers. Volatile global market conditions cause the cost of fuel oil used in electricity generation, and many other industries such as shipping and transportation, to rise and fall continuously. The Fuel Surcharge Adjustment regulations allow for both reductions and increases in costs to be passed on to consumers, making it one of the most fair and efficient means of sustaining service, in spite of global volatility. 

What does this adjustment mean? 

In short, this adjustment translates to savings for customers. Even though fuel prices continue to fluctuate and may increase in the near future, it is ANGLEC’s commitment to share any savings on the current prices with consumers. ANGLEC continues to absorb a portion of the current fuel costs with this, and most downward adjustments.  

 Throughout all rate adjustments, we encourage our customers to employ energy conservation methods and to be proactive in all matters regarding their energy bills.

 Applying the Fuel Surcharge Adjustment  

Considering the structure below, in a household that uses an average of 300 kWh, upcoming bills will translate to approximately EC$213.00/month the impending adjustment, as opposed to roughly EC$252.01/month prior.

Take the following steps to calculate your estimated bill under the new decrease: 

1. Multiply your average kWh usage by the base rate (EC$0.63), record the sum 

1. Multiply your average kWh usage by the Fuel surcharge rate (EC$0.08), record the sum 

1. Add the two sums together to estimate your usage costs for a month 

 ANGLEC Fee Structure Breakdown 

Calculating the Surcharge Adjustment 

Legislation regulates that ANGLEC charge 0.01 cent per kWh for every 0.10 cents increase in fuel cost above $3.64 per imperial Gallon (IG). This mechanism allows ANGLEC to recover the cost of fuel over time with consideration for the fluctuating fuel prices. 

While fuel for electricity generation is purchased in advance, ANGLEC monitors fuel prices weekly and uses a 3-month average to decide on upcoming adjustments. ANGLEC typically absorbs much of the increases in fuel costs to provide the most affordable rates for Anguilla. Although the current rate is below that required under the legislation, we are happy to pass decreases along to customers as long as it is practical. 

For more information and tips, please give us a call, or visit our website (www.anglec.com) or blog via anglec.com/the plug. For further updates, connect with our Facebook page (www.facebook.com/AnguillaElectricity).