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100th Anniversary Year (2011)
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(246) 626-9000

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(246) 626-4300

(246) 626-1800

(246) 228-1396
Fuel Clause Adjustment
Why a Fuel Clause Adjustment?
Fuel is the largest item in the cost of production of electricity. Fuel prices rise and fall frequently and unpredictably and a mechanism is needed to adjust the electricity tariff other than frequent rate hearings. The costs of rate hearings are very high and are eventually passed on to the consumer. To avoid this, the Public Utilities Board (forerunner of the Fair Trading Commission) authorised the Company to use a fuel clause adjustment to deal with changes in the cost of fuel.
What is the Fuel Clause Adjustment?
The fuel clause adjustment is a mechanism designed to recover the cost of fuel oil used in the generation of electricity.
Month All Tariffs cents/kWh
Apr-2015 23.7152
Mar-2015 22.4872
Feb-2015 18.9513
Jan-2015 22.7523
Dec-2014 31.5076
Nov-2014 38.2599
Oct-2014 41.4619
Sep-2014 44.3201
Aug-2014 46.3592
Jul-2014 44.5352
Jun-2014 42.7069
May-2014 41.5426
What does the Fuel Clause Adjustment do?
The fuel clause adjustment adjusts the price that customers pay for each kilowatt hour of electricity as the cost of fuel used to generate electricity rises and falls.
What does the Fuel Clause Adjustment NOT do?
The fuel clause adjustment does not contribute to Light & Power's profit. All monies collected through this mechanism are paid to the oil suppliers for fuel used to generate electricity
Who monitors the Fuel Clause Adjustment?
The Fair Trading Commission is responsible for setting and monitoring the rates Light & Power charges customers. This includes checking the calculation of the fuel clause adjustment. The fuel clause adjustment for each month is published in the daily newspapers early in the month.
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