Barbadians will soon be paying more for electricity, following recent hikes in the price of flour, eggs and bottled gas.
The latest increase was revealed yesterday by chief marketing officer of the Barbados Light & Power Co. Ltd, Stephen Worme, who told the Daily Nation that BL&P’s residential customers would see an increase of about ten per cent on their electricity bills from this month.
The Barbados Chamber of Commerce and Industry (BCCI) also responded, saying that the increase in electricity cost would be felt by retail operations, including those with cold storage facilities such as supermarkets as well as stores with air-conditioning.
“I think it will eat into most companies’ bottom line because it is an overhead and it can’t be passed on,” said president Andy Armstrong, who believes the higher prices for fuel highlight the need for Barbados to intensify the push towards renewable energy.
“It is a significant cost up front but the move away from imported oil to solar or wind energy means we will be less vulnerable to these types of fluctuations,” he said.
Worme explained that the electricity price increase had come about as a result of hikes in the world oil price.
“On the world market, oil prices have reached almost US$113 per barrel on the West Texas Index (WTI) and over US$126 per barrel for Brent Crude Oil.
“As a result of these recent increases, the Fuel Clause Adjustment (FCA) portion of the electricity bill has reached 45.3897 cents/kWh (kilowatt hour), an increase of approximately 5.9 cents over last month,” Worme said.
He noted that current projections suggest fuel prices were likely to increase in the coming months and said BL&P would continue in its efforts to utilize its most energy-efficient generators to minimize the impact on customers.
“We also encourage customers to continue their efforts to help control their energy costs, not only electricity costs but also other forms of energy, including the use of fuel they use in their cars,” Worme said.
“For the longer term, customers could also consider investing in solar photovoltaic generating systems.
“Despite the high up-front cost of photovoltaic systems, with the current high fuel prices, the payback periods for these systems are becoming more and more attractive,” he stated.
Worme noted that at the current Fuel Clause Adjustment, customers participating in BL&P’s renewable energy rider pilot programme were being paid approximately 81 cents/kWh for energy that they sell back into the national grid.
“While this will vary as the FCA varies, it is expected that this price will continue to be attractive in the short to medium term,” he said.
He pointed out that the impact on non-residential customers would depend on their consumption levels.Meanwhile, the change in liquefied petroleum gas (LPG) prices became effective from midnight Sunday. The 100-pound cylinder will now be retailed at $166.40, reflecting an increase of $7.38.
The 25-pound cylinder will now cost $44.24, up by $1.84, and the 20-pound cylinder will be retailed at $35.40 – an increase of $1.48.
In the case of flour, a 20-24 per cent price increase came into effect on April 3, raising the possibility of a hike in bread prices.
The price of eggs also increased five to ten per cent March 14.
