Saint Lucians could face another increase in the fuel surcharge on their electricity bills in October, with LUCELEC warning that persistently high international fuel prices are making it increasingly difficult to contain costs.
The warning comes as the Fuel Surcharge Cost Adjustment on September bills climbs to 35.6 cents per kilowatt-hour (kWh), its highest level this year. The increase reflects fuel purchased in August, when average international oil prices rose to approximately US$91 per barrel — about US$7 higher than in July. LUCELEC attributed the jump to geopolitical uncertainty and continued disruptions in global energy markets.
Managing Director Gilroy Pultie said LUCELEC had hedged approximately 45 per cent of its fuel requirements from August through the end of October, helping to soften the impact on consumers. However, the scale and speed of the recent increase in global fuel prices limited how much protection those hedges could provide.
The result is a September surcharge above the previous 2026 high of 31 cents recorded in May. According to Pultie, without LUCELEC’s fuel-hedging programme, the fuel cost reflected in the surcharge would have been $15.16 per gallon instead of the $14.87 per gallon paid by the company.
The outlook for October is also challenging. LUCELEC said that unless fuel prices decline soon and create more favourable hedging opportunities, customers could continue to see elevated surcharges, including a further increase next month.
Pultie said improving cost stability in October would be difficult because of consistently high fuel prices, while assuring customers that any reductions in fuel costs would be passed on.
LUCELEC stressed that the fuel surcharge is an adjustment mechanism and does not represent revenue or profit for the company. It reflects the difference between the current cost of fuel used to generate electricity and the fuel cost already incorporated into the base tariff.
Customers struggling to meet their electricity bills are being encouraged to contact LUCELEC’s Credit Control team about payment arrangements and account-management options. The company is also urging consumers to monitor electricity use through its MyAccount service and take steps to reduce consumption while fuel costs remain elevated.
Looking beyond the immediate price pressure, LUCELEC said reducing Saint Lucia’s dependence on imported fuel will require greater investment in renewable energy, storage and grid modernisation.
The company is advancing a proposed 10-megawatt solar farm with battery storage at Troumassee and is targeting at least 15 per cent renewable generation by 2030 and 50 per cent by 2035.
