The Government of Grenada has introduced three temporary measures to provide relief to electricity customers. These are effective 1 August to 31 December 2026.
Grenlec is providing customers with information to help them understand how these measures will affect their electricity costs.
The measures are:
- Government Subsidy for Eligible Domestic Customers
Domestic customers using 1–200 kWh during the billing period will receive a $50.00 credit on their electricity bills. Renewable energy customer accounts are not eligible for this subsidy.
- Value Added Tax (VAT) Relief
The non-fuel component of electricity consumption will be zero-rated for VAT (0%), meaning customers will not pay the usual 7.5% VAT on that component of their electricity usage. While VAT on other services and fees remains, note that the fuel charge has never been subject to VAT and this remains unchanged.
- Customs Service Charge (CSC) Relief
The Government has temporarily removed the 6% Customs Service Charge (CSC) on diesel imported for electricity generation between 1 August and 31 December 2026. This will reduce the cost of imported fuel used for electricity generation and the resulting benefit will be reflected in the fuel charge passed on to customers.
Customers should note that the Government subsidy and VAT relief are based on electricity used during the relief period. Where a bill includes electricity usage both before and after 1 August 2026, these measures will be applied only to the portion of electricity used during the relief period. Similarly, the CSC relief applies only to eligible fuel imported between 1 August and 31 December 2026, so the impact on the fuel charge will be phased in as existing fuel stocks are depleted.
Grenlec has published a customer fact sheet with additional information, including eligibility requirements, how the measures will be applied and answers to frequently asked questions on its website.
These temporary measures apply from 1 August to 31 December 2026 and are intended to provide relief through different components of customers’ electricity bills.
While these temporary measures will help reduce electricity costs, Grenlec encourages customers to continue using electricity wisely. Conserving energy remains one of the most effective ways to manage electricity bills, and customers are encouraged to maintain energy-efficient practices throughout the relief period and beyond.