FREEPORT – As Bahamian consumers continue to see a rise in their electricity cost, BEC chairman Michael Moss discussed the distinction of a fuel charge imposed by BEC and a fuel surcharge imposed by the Grand Bahama Power Company.
He noted that prior to the mid-1970 electricity tariffs reflected neither a fuel charge nor fuel surcharge as today.
Mr Moss said because the price of oil was stable back then, the cost of fuel was embedded in the tariff.
He explained that the energy charge in that component of the bill needed to recover the cost of capital expansion, repairs and maintenance, salaries, and other expenses, and a fuel charge – the total cost of fuel.
