Changes in Government Charges on Electricity Effective 1 February 2023
Grenada Electricity Services Ltd. advises customers about changes in Government charges on electricity. These changes in the Environmental Levy and VAT were announced in the 2023 Budget Statement and gazetted 27 January 2023. A new relief measure, a $10 Government subsidy for eligible electricity customers has also been implemented.
Environmental Levy
Effective 1 February, the environmental levy reverted to what existed prior to Government’s implementation of relief measures on 24 December 2021.
This means domestic customers with usage lower than 100 units will pay no environmental levy. A flat EC$5 charge will be applied to the bills of domestic customers with usage between 100 -150 units, while usage above 150 units will be charged a flat $10.
This environmental levy is collected by Grenlec and remitted to the Solid Waste Management Authority.
Valued Added Tax on the Non-Fuel Portion of the Electricity Bill
Also note a reduction in the VAT rate from 15% to 7.5%, effective 1 February 2023.
The VAT continues to apply to the non-fuel portion of all customers’ electricity bills with an exemption for domestic customers only on the first 99 units of electricity consumed.
New $10 Government Subsidy for Eligible Customers with Electricity Usage below 100 Units
A new Government relief measure of a $10 electricity credit will be applied to domestic accounts with usage lower than 100 units in a billing period. The effect of this subsidy is a $10 reduction in the electricity bill.
This subsidy, which is not applicable to renewable energy customers, is effective 1 February to 31 December 2023.
Please be guided by these changes to the Government charges on electricity.
For any questions or comments, please email us at customersupport@grenlec.com, visit any of our customer care centres or call us at telephone # 237.
Summary of Changes in Government Charges on Electricity Charges
Effective 1 February 2023
| Government Charges | Changes | Notes |
|---|---|---|
| VAT
Applicable only to the non-fuel portion of the bill for all customers. |
Reduction of VAT from 15% to 7.5% for all customer categories – domestic, commercial, industrial. | Domestic customers continue to be exempted from VAT on the first 99 kWh (units) consumed. |
| Environmental Levy
Applicable to domestic accounts only. |
99 kWh (units) or less: no levy
100 kWh – 150 kWh: flat $5.00 Over 150 kWh: flat $10.00 |
This is a reinstatement of the levy as existed prior to Government’s relief measures implemented 24 December 2021. |
| $10.00 Government Subsidy (New measure) Applicable to eligible domestic accounts only. Effective 1 Feb – 31 Dec. 2023. | $10.00 credit to be applied to these domestic electricity accounts only: Usage of 99 kWh or less in the billing period. Not applicable to renewable energy customers. |
This $10 subsidy will be itemised as “Gov’t subsidy” in the billing details table on the right side of the bill. |