VINLEC defends higher fuel surcharge despite record EC$798,591 subsidy

KINGSTOWN, St Vincent. St Vincent Electricity Services Ltd (VINLEC) has defended its decision to raise the fuel surcharge charged to customers, despite providing a subsidy of EC$798,591 to help offset rising fuel costs.

The state-owned company said October bills reflected a fuel surcharge of 86.71 cents per kilowatt-hour (kWh). That is seven cents per kWh more than in September and 3.5 cents above the previous peak of 83.20 cents, applied to July bills.

VINLEC said the EC$798,591 subsidy was its largest monthly contribution of its kind, given continued rises in fuel prices. Without it, the company said, the October surcharge would have climbed to more than 92 cents per kWh.

"VINLEC's overall subsidy has exceeded EC$3.9 million since the introduction of the government's cost-of-living initiatives in May 2026," the company said.

Record diesel prices

It said diesel benchmark prices across much of the Caribbean climbed to record levels in September 2026, as geopolitical tensions disrupted global fuel supplies.

"This is reflected directly in the fuel surcharge rate," the company said.

Renewable projects

VINLEC said it remains committed to funding initiatives that will increase the use of renewable energy in St Vincent and the Grenadines.

"Immediate projects include the recently recommissioned solar farm at the Lowmans Bay Power Station that has nearly tripled the solar PV generated at Lowmans Bay, and the ongoing Battery Energy Storage System project at its Cane Hall facilities, which is due to be completed in early 2027," it said.

The company said the battery storage project is designed to support the integration of additional renewable energy systems.

"We encourage customers to continue practising conservation as much as is practically possible," VINLEC said.