Why was a new electricity bill introduced?
For some time, we have been working on a new electricity bill format in response customers' requests for more information to help them understand how their bills are calculated. The new design, introduced at March 1, 2010, provides information relevant to customers' current bills and also gives information on the electricity usage billed over the last 13 months. We hope that this information will help our customers to understand better and to manage their electricity consumption wisely.
How will information be communicated to customers on the new electricity bill?
From mid-February, we have been advertising the new features on the electricity bill through the media and through our website. We have also published a "Get to know your new bill" brochure for customers. This brochure has been enclosed in the electricity bill for the month of March. The brochure will give a detailed explanation of all of the fields on the new bill.
When will the new electricity rates be applied?
The new electricity rates will be applied to all billing cycles from March 2010 and beyond. This means that all accounts billed in March between the meter reading in February to the meter reading in March will be billed at the new electricity rates. These rates were approved by the Fair Trading Commission in January 2010.
Why did the Fuel Clause Adjustment (FCA) in March increase by 4.62cents/kwh from that of February (from 27.3063 to 31.9299 cents/kWh)?
There are two reasons for this increase of 4.62 cents/kWh in Fuel Clause Adjustment (FCA) for March:
1. A 2.64 cents/kWh increase is due to a change in the calculation in the FCA calculation from March 1. The Fair Trading Commission recently approved a BL&P request to transfer 2.64 cents/kWh for the cost of the fuel to the FCA. This amount was previously incorporated in the base energy rate. It now means that all costs pertaining to fuel used in the generation of electricity will be collected through the FCA. While, this would result in an increase of 2.64 cents/kWh in the FCA, the net impact on a customer's electricity bill is zero because the base energy rate has also been adjusted with a corresponding reduction of 2.64 cents/kWh.
2. A 1.98 cents/ kWh increase is the result of the cost of fuel used in the generation of electricity for the month of March based on the projected price of fuel and mix of generation to be used.