| Fuel Factor drops for June bills | | Print | |
| Thursday, 21 July 2011 09:21 | |||
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Just in time for the hot summer months, Fortis TCI announced this week the fuel factor rate decreased slightly on electricity usage in June. Fuel prices increased significantly in the first five months of 2011, but took a short breather starting in May. That decrease is translating into a reduced fuel factor for customers in the Turks and Caicos Islands. Fortis TCI charges a variable fuel factor rate based on actual fuel costs on each kilowatt-hour of energy in addition to its base rate. Unfortunately, due to the recent introduction by the interim government of a 4 percent customs processing fee, the reduction was cut nearly in half. “The recent reduction in the price of fuel would have translated in a total decrease of 4.8 percent in the fuel factor rate,” Fortis TCI said in a July 20 statement. “However, only a 2.5-percent drop in June’s fuel factor rate will be reflected in July’s electricity bills from $0.2425 to $0.2366. The total decrease of 4.8 percent has been partially offset by an adjustment for the calculation of 4-percent Customs Processing Fee which was implemented by (government) in April 2011.” “For the period April 19 to June 14, 2011, Customs Processing Fees on fuel purchased from Fortis TCI’s fuel supplier were understated due to a revised basis of calculation provided by the Customs Department,” said Ruth Gardiner-Forbes, Fortis TCI’s vice president of finance and CFO. “As a result, this became an additional cost of fuel for the company. In order to minimise the impact of this additional cost in the fuel factor, Fortis TCI Ltd. has decided to distribute the total amount of understatement over the next two months. The full 4 percent Customs Processing Fee should be reflected in the fuel cost each month going forward.” Gardiner-Forbes reminded customers that the price of fuel being used to generate electricity does not correspond directly to the current market price because of the supplier’s distribution chain. Therefore, the price charged to Fortis TCI reflects the effective price when the fuel was purchased by the supplier. With crude oil prices on the upswing, customers can expect the small decrease in the rate to be short lived. “Customers are encouraged to continue their efforts to manage their energy consumption and maximise the value of energy they use,” said Allan Robinson, Fortis TCI’s vice president of customer and corporate services. “Although we can’t control global fuel rates, we can make simple changes in our daily lives by being more energy efficient to help keep costs at a minimum.”
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