APUA Blames Global Fuel Shock and Higher Consumption for Rising Electricity Bills

The Antigua Public Utilities Authority says the recent increase in electricity bills is being driven by a combination of sharply higher fuel costs, increased household consumption and, in some instances, longer billing periods.

Minister for Utilities Melford Nicholas and senior APUA officials addressed public concerns during a press conference at the John E. St. Luce Finance and Conference Centre.

APUA’s Chief Operating Officer and Acting Chief Executive Officer Roger Tonge said the authority’s monthly fuel orders increased from EC$11 million in January to EC$21.8 million in July.

Fuel purchases stood at EC$10 million in February, EC$12 million in March, EC$19.4 million in April, EC$17 million in May and EC$19 million in June.

Tong attributed the sharp increase to geopolitical tensions affecting global commodity markets and the cost of both diesel and heavy fuel oil used to generate electricity.

“The first-quarter fuel orders were fairly stable, but with the advent of the Iran war, there was an extreme spike and volatility in the commodities marketplace,” he explained.

APUA initially held its fuel variation charge at 55 cents per kilowatt-hour in the hope that international oil prices would decline. However, the anticipated reduction did not materialise.

The authority subsequently increased the fuel variation charge, although officials said customers are still not being billed the full cost of the fuel used to generate electricity.

Electricity Business Unit Manager Andre Matthias said unusually high temperatures are also leading many households to use air-conditioning units for longer periods.

He stressed that even energy-efficient appliances can increase a customer’s total consumption if they are used more frequently.

APUA is encouraging customers who believe their bills are unusually high to visit one of its customer service centres so that their accounts and meters can be investigated.