APUA’s fuel costs have risen from $11 million in January to more than $23 million for the same quantity of fuel, Utilities Minister Melford Nicholas says, explaining the pressure behind higher electricity bills.

Speaking on Taking Stock on Pointe FM on Nov. 10, Nicholas said the utility could no longer absorb the increased expense and had passed some of the cost to consumers.

“We haven’t passed all to the consumers,” he said.

Nicholas explained that electricity bills include separate charges for energy and fuel. While the basic energy rates had remained unchanged, the fuel component had increased as APUA’s fuel costs rose.

He said APUA supplies fuel for electricity generation under its power purchase arrangements, leaving the utility exposed to changes in international fuel prices.

Nicholas assured customers that the fuel component of their bills would be reduced when those costs decline.

“When … prices for fossil fuel fall, similarly, we will automatically change the price and the fuel component of the bill,” he said.

The minister argued that the increases underscored the need to accelerate investment in renewable energy and reduce the country’s dependence on imported fuel.

He outlined a proposed 55-megawatt solar project with battery storage, saying officials would examine its feasibility, requirements and costs before seeking Cabinet approval.

Nicholas said Antigua and Barbuda could not afford to remain vulnerable to international disruptions that drive up the cost of electricity.

Source: Antigua News Room APUA fuel costs more than double, pushing up electricity bills in Antigua and Barbuda.