Mindful of the tough economic times that our customers and the country face, Grenada Electricity Services Ltd (GRENLEC) has taken the decision not to implement a non-fuel rate increase that the Company was eligible to apply from January of this year.
GRENLEC satisfies our customers’ expectations of reliable and safe energy, while managing costs within our control. Our Company operates under a regulatory regime that:
- Requires GRENLEC to absorb a portion of operational cost increases resulting from inflation. Where inflation is less than 2%, rates are reduced. Consequently, we continually strive to maintain and improve our efficiency.
As shown in the table below:
- Volatile and high world fuel prices are responsible for the increases customers have been experiencing in recent years.
- The movement of the non-fuel charge over the last 16 years has been less than 4 cents.
The Consumer Price Index (CPI) of 3.52%, as it stood at December 31, 2011, necessitated an increase in the non-fuel charge of 1.22%. However, GRENLEC will not implement this rate increase to ease the burden on our customers who are coping with challenging economic times.
The Company’s non-fuel rate is adjusted annually, based on inflation 2 years prior.
- In 2011 there was a rate decrease.
- In 2009 and 2012 the rate increased.
- This is the third occasion (2008, 2010, 2013) in six years that the Company has chosen not to implement rate increases, even though it was eligible.
GRENLEC continues to aggressively pursue renewable energy initiatives that will enhance Grenada’s energy security and stabilise electricity costs by reducing our dependence on unpredictable fossil fuel imports. Simultaneously, we encourage customers to improve efficiency and manage consumption.