For Immediate Release
24th March 2023
Fuel Surcharge Adjustment Notice
The Anguilla Electricity Company Ltd. (ANGLEC) advises that the Fuel Surcharge will be adjusted from $0.70 per kWh to $0.60 per kWh effective 1st April 2023.
Kindly note that all adjustments to the Fuel Surcharge are applied in accordance with the Electricity (Rates and Charges) Regulations. Kindly note that the new rate of $0.60 is well below what it should be as prescribed under the legislation.
With the impending adjustment, ANGLEC is still absorbing a significant portion of the current fuel costs to soften the impact on customers in these difficult economic times. More information on the legislation can be found on the official Government website.
Adjustment Background
The Fuel Surcharge that ANGLEC passes on to consumers is directly related to the price of fuel purchased by ANGLEC to run its generators and provide electricity to Anguilla. In the last year ANGLEC faced financial challenges in part because of the volatility of the price of fuel on the world market. During that time, fuel prices increased significantly and the market remained unstable. At one point, ANGLEC paid as much as $17.00 (June 2022) per gallon for fuel, a hyper-inflated rate when compared to the historical average costs of approximately $6.00 per gallon (EC/XCD).
Recently however, there has been a gradual decline on the world market, and while the Fuel Surcharge should remain at or around EC$0.70, based on the regulated formula, ANGLEC has decided to reduce it from EC$0.70 to EC$0.60. At the new rate ANGLEC will still be subsidising the Fuel Surcharge by approximately EC$0.86. ANGLEC recognizes the need to assist customers as much as possible during this extraordinary period of financial burden across all sectors, both locally and internationally. The ANGLEC Board of Directors and Management were slow to issue increases in the recent past due to the economic factors facing customers and are proud to issue a reduction now. ANGLEC’s CEO Mr. Sutcliffe Hodge shared that “Due to cost-cutting measures that we have employed at ANGLEC in the last six months, we feel that the company is now in a position where we can provide some financial relief to all our consumers of electricity by lowering the Fuel Surcharge by EC$0.10. This represents a 14.30% reduction in the Fuel Surcharge rate which, I am sure, consumers will be very happy to hear. We are hoping that we will see further reductions in the price of fuel on the world market going forward, and as these reductions continue, we will follow through and make further reductions in the rate of the Fuel Surcharge for our consumers. Conversely, we are mindful that if there is an increase in the price of fuel on the world market, that would also necessitate ANGLEC having to increase the rate of our Fuel Surcharge, once again. However, we remain hopeful and optimistic that the price of fuel on the world market will stabilise, if not decline, in the coming months.”
Internal Cost-Saving Measures
Though the company has been through difficulty in recent years, with new key members of leadership and management at the helm, several immediate and strategic internal measures were taken since the last increase in 2022. The internal cost-saving measures allow some room for sacrifices of this nature. The objective at present is to continue to strengthen ANGLEC’s financial stability and be in a position to issue further decreases to customers as soon as possible through ANGLEC’s transition to Renewable Energy. In a public notice issued in June 2022, ANGLEC announced cost analysis efforts and expenditure cuts in response to the hyperinflation in fuel prices. Since the last increase in the fuel surcharge adjustment in July 2022, ANGLEC has undergone unprecedented cost savings in keeping with the commitment to lower operational costs and costs to customers as follows:
- Mass bill printing has stopped through the effort to “Go Paperless” and save on printing, mailing, and other bill-related operational costs.
- ANGLEC is in the process of selling diesel and gasoline vehicles and replacing them with electric vehicles.
- 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.
- ANGLEC is conducting an ongoing analysis of company affairs and expenditures to move diligently toward a more efficient future.
- A committed pursuit of renewable energy is underway to eliminate the purchase of fuel and lower electricity costs.
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 many 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 be proactive regarding their energy bills. For further information and assistance, please contact our Customer Care Unit via 1 (264) 497- 5200.
