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BL&P: Higher fuel costs in April as a result of global oil prices


Kendy

BL&P: Higher fuel costs in April as a result of global oil prices

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The Barbados Light & Power Company (BL&P) said today that “dramatically increasing global oil prices” will have a notable impact on the April 2022 Fuel Clause Adjustment (FCA) and customers’ bills.

In a statement, the company said that the FCA component of customers’ bills is a variable cost and directly influenced by the cost of oil on the global market. Fuel cost is passed directly to consumers as incurred.

Johann Greaves, BL&P’s Director Operations said: “The FCA for the month of April 2022 is approximately 45 cents per kilowatt hour, an increase of 22 per cent over March.

“The volatility and uncertainty of global markets has impacted all Barbadians, resulting in this notable rise in the price we pay for fuel to generate electricity, as well as in the cost of oil products such as petrol and diesel at the pumps, and everyday goods that must be transported to our stores and markets.”

BL&P said the 22 per cent rise in the fuel portion of customers’ bills will result in a notable impact to monthly electricity costs.

“We know that these are significant and impactful changes month over month, and we also know that the cost of fuel may continue to be high for the foreseeable future,” Greaves said.

“Light & Power urges customers to use electricity wisely. We also want to assure customers that we are unwavering in our commitment to transitioning from fossil fuel-based generation toward renewable energy sources. Easing our reliance on foreign oil will enable us to bring greater stability and predictability of energy costs to customers.”

Greaves urged customers to be efficient in the use of electricity at home and at work to ease the impact of the rise in the world price of crude oil, as “this considerable jump in the Fuel Clause Adjustment due to global events [is] beyond our control”.

“We implore customers to consider small changes that will have an immediate impact on energy costs such as switching to LED lighting, unplugging unused electronics to minimise standby power, and prudently managing air conditioning use.”

Greaves said BL&P will continue to give updates. (PR/KG)