SKELEC’s Customers benefit from Low Oil Prices

(ZIZ News) — As oil prices drop on the world market, customers in St. Kitts continue to see reductions in their electricity bills.

Chief Executive Officer (CEO) at the St. Kitts Electricity Company (SKELEC), Cartwright Farrell said customers are benefiting greatly.

He said SKELEC’s residential customers have seen an almost 14 percent reduction in their electricity bills due to a reduction in the fuel variation charge (FVC).

According to Farrell, the FVC is a direct pass-through cost to the customer that is affected solely by the cost of fuel on the world oil market.

He explained that “in September 2014, the FVC fell to 24 cents per kilowatt-hour and fell further to 11 cents per kilowatt-hour in January 2015.”

Farrell also mentioned that the household light-emitting diode (LED) lamp exchange programme will assist in the conservation effort which will in turn be rewarded with a higher subsidy for the fuel variation charge.