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Fuel Surcharge Rising Again

After several months of a steady decline, the fuel surcharge attached to electricity bills is taking a turn that is not likely to be welcomed news for consumers.

The Bahamas Electricity Corporation (BEC) says the fuel surcharge will be up slightly this month over last month.

In April, the fuel surcharge will be 9.4561 cents per kilowatt-hours, up from 9.3128 cents per kilowatt-hours in March.

While the cost will only be slightly up this month over last month, businesspeople and other consumers who pay attention to movements in the fuel surcharge are taking note.

Last year, the fuel surcharge showed sharp increases.

The fuel surcharge had jumped from 4.6236 cents per kilowatt-hour in February 2005 to 11.9818 cents per kilowatt-hour in December.

In January, the fuel surcharge dropped to 10.8948 cents per kilowatt-hour, according to BEC.

Once again, officials there reminded that each electricity bill is made up of the basic rate, which is constant and has not changed since October 2003, and the fuel surcharge, which is based on the price of petroleum in the international market and is calculated monthly using a fixed formula.

The lower fuel surcharge between January and March translated directly into savings for consumers who have had no choice but to bear the burden of the high costs.

Many consumers continued to complain about electricity bills being significantly higher than in the past, but again BEC officials kept reminding that there was nothing they could do to lower the fuel surcharge.

In fact, General Manager Kevin Basden had continued to urge consumers to put in place conservation measures to help reduce their energy costs.

After the November increase was announced, Mr. Basden said the corporation was doing its part to help consumers cope. At one point, he also pointed out that high fuel costs weren't just a burden on consumers, but were also a burden on the corporation.

"It's a tremendous burden for the corporation because in fact we pay for the fuel costs and other factors upfront," he said at the time.

"There are also certain taxes we have to pay from which there is no recovery so it is a tremendous burden to the corporation. It directly impacts our cash flow and that's why we are concerned what customers are now having to pay; it's what we're now having to pay."

The Department of Statistics recently reported that higher electricity bills contributed to a higher cost of living between July and August 2005.

The following are tips from the website of Earth 911, an American private-public sector coalition that provides environmental information.

n For the home:

1. Turn off non-essential lights and appliances. The electricity generated by fossil fuels for a single home puts more carbon dioxide into the air than two average cars.

2. Avoid running large appliances such as washers, dryers, and electric ovens during peak energy demand hours from 5:00 a.m. to 9:00 a.m. and 4:00 p.m. to 7:00 p.m.

3. Close shades and blinds at night to reduce the amount of heat lost through windows. This also applies during the day for warm climates.

4. Buy Energy Star appliances, products and lights.

For Business:

1. Turn off all unnecessary lights, especially in unused offices and conference rooms and turn down remaining lighting levels where possible.

2. Set computers, monitors, printers, copiers and other business equipment to their energy saving feature and turn them off at the end of the day.

3. Minimize energy usage during peak demand hours from 5:00 a.m. to 9:00 a.m. and 4:00 p.m. to 7:00 p.m.

4. Buy Energy Star appliances, products, and lights.

5. Consider placing outdoor signs on a timer so they only run until 1:00 am, saving electricity during non-peak hours.

Tips for Kids and Teachers:

1. Choose an energy monitor for your classroom every week who will make sure that energy is being used properly.

2. At home, hold a ribbon up to the edges of windows and doors. If it blows, you've found a leak. Tell your parents.

3. When you leave the room, turn off the light.

By: Candia Dames, The Bahama Journal

Posted in Headlines

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