Grenada Electricity Services Ltd (GRENLEC) is discontinuing a temporary decrease in the non-fuel rate of electricity that is adversely impacting the
Company.
This 25% decrease per kWh in the non-fuel charge across all customer categories was Implemented in January 2022 to provide some relief to electricity customers. Clive Hosten, Acting General Manager, noted, “While it was understood that the significant decrease would negatively impact the Company’s operations and finances, it was important to take some meaningful action to help customers”.
The rate reduction has lessened the severe impact of high electricity prices, which have been climbing since January 2021 because of increases in world fuel prices. Fuel charge to customers is currently at a record high 87 cents per kWh.
Acknowledging the gravity of the situation for the Company as well as customers, Hosten says the timing of the discontinuation of the 25% reduction cannot be further delayed. “Having given up 25% of its non-fuel revenue for 8-months, Grenlec can no longer sustain this decrease without severe consequences to its ability to maintain service standards”.
Significantly, the non-fuel rate before the 25% reduction represented a rate that had increased by less than 3 cents in nearly 30 years. With the 25% reduction, the Company was operating with a rate that was lower than it was 28 years ago.