April 2019 – Fuel Surcharge Adjustment Notice
The Anguilla Electricity Company Ltd. (ANGLEC), advises that the Fuel Surcharge will be adjusted from 31¢ per kilowatt hour (kWh) to 25¢ per kWh on May 1st, 2019.
Although fuel prices continue to be volatile with signs of a pending increase, they have remained lower than our current rates on average. Accordingly, a decision was taken to reduce the cost to consumers.
Kindly note, all adjustments to the Fuel Surcharge are applied in accordance with the Electricity (Rates and Charges) Regulations. The current rate of 0.25c is below that prescribed under the legislation.
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 volatility.
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.
We monitor fuel prices each week and use a 3-month average to decide on the next adjustment. ANGLEC typically absorbs mush 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 any decreases along to customers as long as it is practical.
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, we have chosen to pass any savings on the current prices to consumers. ANGLEC will continue to absorb a portion of the current fuel costs.
Applying the Fuel Surcharge Adjustment
Considering the structure below, in a household that uses an average of 300 kWh, bills will translate to roughly EC$264.00/month the impending adjustment as opposed to approximately EC$282.01/month prior. Take the following steps to calculate your estimated bill under the new decrease:
- Multiply your average kWh usage by the base rate (EC$0.63), record the sum
- Multiply your average kWh usage by the Fuel surcharge rate (EC$0.25), record the sum
- Add the two sums together to estimate your usage costs for a month
ANGLEC Fee Structure Breakdown
| 0-40 Units (kWH) | EC$22.00 | ||
| 41-25000 Units (kWh) | EC$0.63 per kWh | ||
| 25000-100000 Units (kWh) | EC$0.62 per kWh | ||
| >100000 Units (kWh) | EC$0.43 plus Service Charge EC$20500.00 | ||
| Fuel Surcharge | EC$0.25 per kWh (previously$0.31) | ||
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 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).
