KINGSTOWN, St. Vincent, Oct 21, CMC -The state-owned St. Vincent Electricity Services Limited (VINLEC) has defended the seven cents per kWh increase in thefuel surcharge rate to customers, despite an EC$798,591 (One EC dollar=US$0.37 cents) in subsidy.
According to VINLEC, customers received their October bills showing the fuel surcharge rate 86.71 cents per kWh, saying “this is an increase of EC$0.7 cents per kWh compared to the previous month, and an increase of 3.5 cents compared with the previous high of 83.20 cents that was applied to the July bills.
It said that given the high fuel prices, VINLEC’s subsidy of EC$798,591 is also the highest monthly subsidy applied,” and that without this subsidy, the fuel surcharge would have exceeded 92 cents for October.
“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, adding that the benchmark prices for diesel fuel used by most Caribbean territories reached an all-time record high in September 2026 due to global supply disruptions caused by geopolitical tensions.
“This is reflected directly in the fuel surcharge rate,” the lone electricity generation and distribution company said, adding that it continues to invest in projects aimed at expanding renewable energy penetration 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,” VINLEC said.
It said that the battery storage project is being installed to accommodate the expansion of renewable energy
systems.
“We encourage customers to continue practicing conservation as much as is practically possible,” VINLEC said.
CMC/kvc/ir/2026