Fuel Surcharge Adjustment – 13th, July 2022

For Immediate Release
13th, July 2022

Fuel Surcharge Adjustment Notice

The Anguilla Electricity Company Ltd. (ANGLEC), advises that the Fuel Surcharge will be adjusted from $0.45 per kWh to $0.70 per kWh on Monday, August 1st, 2022.  Kindly note, all adjustments to the Fuel Surcharge are applied in accordance with the Electricity (Rates and Charges) Regulations. The current rate of $0.45 is well below what it should be as prescribed under the legislation.

With the impending adjustment, ANGLEC is still committed to absorbing a significant portion of the current fuel costs to soften the impact on customers in these difficult economic times. More information can be found on the official Government website.

Adjustment Background 

Since ANGLEC last adjusted the fuel surcharge on April 1st, 2022 (from 25¢ per kWh to 45¢ per kWh) the cost of fuel on the world market has risen as high as to require a surcharge of $1.23 with no adjustment by ANGLEC. The ANGLEC Board of Directors and Management have been slow to issue any increases since that time due to the economic factors facing Anguilla and the world at present.

Regrettably, in the month of June ANGLEC spent 16.2% more money buying fuel than revenue made. This is an issue of great significance considering the amount of previous losses to date. Not issuing an adjustment now, after an extended period of hyperinflation, would severely hinder ANGLEC’s operating ability. Though the company has been through difficulty in recent years, with new key members of management at the helm, several immediate and strategic internal measures are in progress to mitigate the financial burden to both customers and the company.  The objective at present is to recover ANGLEC’s financial stability and be in a position to issue a decrease to customers as soon as possible, despite the predictions for continued volatility and continued global crisis.

Internal Cost Saving Measures

In a public notice issued in June ANGLEC announced cost analysis and expenditure cuts underway in response to the hyperinflation of fuel prices that are challenging global markets. In an unprecedented commitment to the goal of cost savings, newly appointed CEO, Mr. Sutcliffe Hodge has refused to receive a salary in an effort to decrease company costs during this difficult period. Also, in keeping with the commitment previously announced, ANGLEC has undergone the following changes:

1. Most vehicle allowances have been stopped and those still issued reduced by over 30%.
2. An initiative to go paperless has been created and will roll out in short order in an effort to go green and save on operational costs.
3. All use of company vehicles outside of work has been stopped.
4. All diesel and gasoline vehicles will be disposed of. After a full evaluation of vehicle needs, any vehicle replacements will be done with electric vehicles.
5. An ANGLEC debt collection unit is being formed to aid Customer Care in customer outreach and collection of outstanding bills owed to the company, from the smallest to the largest customer.
6. ANGLEC is conducting an ongoing analysis of company affairs and expenditure to move diligently toward a stronger and more efficient future.
7. An aggressive pursuit of renewable energy is underway to eliminate the purchase of fuel.
8. Organizational restructuring is underway through the Human Resources Department with the most immediate changes to the considerations of Department Heads, Management, and other relevant positions to increase efficiency and establish more effective management of our resources going forward.

“While some of these measures might seem challenging, they are a direct indication of the circumstances we face” notes, CEO Mr. Hodge.

In a letter to staff he appealed to all employees stating “we must be a successful team; our country depends on our every action during this time. Your continued commitment, support, understanding, and willingness to sacrifice at this difficult time are deeply appreciated. We see a robust, vibrant, and successful ANGLEC in the near future.” More adjustments are on the horizon and ANGLEC is committed to keeping the public informed as changes are made.

Applying the Fuel Surcharge Adjustment

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

1. Multiply your average kWh usage by the base rate (EC$0.63), record the sum
2. Multiply your average kWh usage by the Fuel surcharge rate (EC$0.70), record the sum
3. Add the two sums together to estimate your usage costs for a month

Customer Assistance

At ANGLEC we understand that financial hardship can occur at any time, especially during the current climate which is why we are slow to issue increased adjustments. However, even when these decisions must be made we offer a plethora of assistance programs for customers in need. If you or someone you know may need help, we advise you to take advantage of our payment plans and deferment programs.

Throughout all rate adjustments, we encourage our customers to employ energy conservation methods and to be proactive in all matters regarding their energy bills. For further information and assistance, please contact our Customer Care Unit via 1 (264) 497- 5200.