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There is a misperception that Grenada''s electricity prices are higher than other small island nations in the Caribbean, as well as around the world. The following snapshot shows how Grenada ranks with other similar Caribbean islands and nations worldwide in regard to the price of electricity. We also compared reliability, outage duration, system performance, and fuel efficiency ratings for select Caribbean islands where information was available. We also want to explain what comprises the average electricity bill.
First, we have provided a comparison of the monthly electricity bill for the average residential and commercial customer in Grenada, Grand Cayman, Dominica, Barbados, Jamaica and St. Lucia. Then, for an additional comparison, we calculated the average electricity price by dividing the utility companies'' 2013 gross revenues by unit (kilowatt-hour) sales, and we include similar islands around the world─the U.S. Virgin Islands, Bermuda, and the Island of Hawaii.
The Caribbean islands used for this comparison all have similar characteristics. Each island operates as a stand-alone electric system that''s mainly dependent on imported fuel for generating electricity. Without indigenous or regional energy resources to draw upon in times of high energy demand or storm recovery, significant reserves must be on hand to ensure reliable electric service. Couple that with the relative small populations of these islands, and the resultant cost to maintain the electric system is higher per unit than in larger economies.
Commercial. Again, our commercial customer''s typical monthly bill is comparable to, and in many cases below most other islands. The comparison is based on the average commercial consumption of 1,369 kWh (units) per month, and includes VAT at 15% on the non-fuel portion of the bill.
Grenada''s average electricity price is on par with most islands, even when compared to nations with larger populations. Again, these islands have similar characteristics with non-interconnected electric systems that are highly dependent on imported fuel.
Non-fuel. The non-fuel base rate portion of the electric bill consists of the operational and administrative costs to generate electricity. With over 20 years of improvements and efficiencies, Grenlec''s non-fuel base rate has decreased 23% when adjusted for inflation, saving Grenadians money.
Tax and levy. Grenada has a Government Value Added Tax (VAT) of 15% on the non-fuel portion of electricity charges, and an environmental levy on domestic rates. There is also a 6% customs service charge paid on all fuel imported.
Grenlec is one of the most reliable electric utilities in the Caribbean, serving 100% of the nation with an industry-leading reliability rating of 99.94%*. Dependable electric service is available to all residents nationwide, including Carriacou and Petite Martinique, on a 24/7 basis. When storms or outages do occur, Grenlec restores power faster than most island nations. Grenlec compares favorably with utilities regionally for reliability, low down time, system performance and high fuel efficiency.
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