Barbados Light & Power Company Ltd has asked customers to conserve energy in their homes, where possible, and gave tips for fuel efficiency when driving.
A statement from the company outlined the impact of the Russia-Ukraine conflict and expressed support for Government’s transition to a renewable energy future and 100 per cent electrification by 2030.
Following is Light & Power’s Statement on the impact of high international oil costs.
The Barbados Light & Power Company (Light & Power) continues to prudently monitor the crisis in Eastern Europe and its implications.
The Russian invasion of Ukraine has already had significant impact on the world and, as expected with matters of global magnitude, Barbados will not be exempt.
Russia is the world’s second largest exporter of crude oil and the largest exporter of natural gas, therefore, the conflict is impacting international oil prices and the cost of fuel that Light & Power purchases from The Barbados National Oil Company Limited (BNOCL) and our other fuel suppliers.
“Global energy markets have been volatile for several months and crude oil prices surged past $100 a barrel recently for the first time in seven years,” said Light & Power’s Director Operations, Johann Greaves.
“The cost of West Texas Crude internationally has increased from US$61/barrel at the end of March 2021 to US$120/barrel in March 2022. This is a concerning situation since it means a rising Fuel Clause Adjustment [FCA] for our customers.”
The FCA is the component of customers’ bills directly influenced by the cost of oil on the global market. It is a straightforward pass-through, and fuel is charged directly to customers as incurred.
“In addition to shifting global fuel costs in any specific period, a customer’s monthly bill is driven by electricity usage. With this current situation, we urge our customers to be very efficient in their use of electricity and, further, in their use of fuel for transport.
“Small, simple changes in practices such as turning off unnecessary lights and unplugging unused electronics to lessen standby power can have an immediate impact on electricity costs. And when driving, fuel efficiency can be improved by easing up on rapid acceleration, high speeds and sudden braking, and by avoiding idling.
“The crisis highlights the criticality of our Government’s transition to a renewable energy future and our Company’s support of 100 per cent electrification by 2030,” Greaves said.
“Easing our reliance on foreign oil will enable Light & Power to bring greater stability and predictability of energy costs to customers, and supports energy independence for Barbados.”
Light & Power expressed its commitment to working with The Ministry of Energy and with other agencies to help manage the impacts of the current crisis in Ukraine.
“Engagement and communication are a priority for Light & Power at this time, not only with our employees and customers, but other key stakeholders as well,” Greaves said.
“We will seek ongoing engagement with our partners in Government and all relevant agencies as we work in service to all Barbadians.” (PR)