My electricity bill was very high last year. What was the reason for this?
The single most significant factor in your electricity rate is the price that Anglec pays for fuel. As shown in the graph below, Anglec’s fuel price has been very volatile with several major swings over the last five years.

Last year (2008), Anglec saw its fuel costs rise to unprecedented levels, exceeding EC$14 per Imperial Gallon (IG). Anglec’s base rate allows for a maximum fuel price of EC$3.64/IG and when fuel prices surpass this level, a fuel surcharge is added to the base rate. This surcharge varies as oil prices change.

Recently, refinery trading prices for diesel fuel have declined significantly, but I have not seen a decrease in Anglec’s fuel surcharge. Why is this?

This is because a change in refinery prices does not immediately affect Anglec’s fuel costs. The relevant time lag applies to both increases and decreases in prices, and is primarily due to:

• The process of loading the fuel supplier’s tanker, sailing from refinery, and delivering to other countries along the way to Anguilla’s depot;

• Consumption of Anglec’s old fuel stock (at older rates). Anglec has a fuel storage capacity of approximately 200,000 imperial gallons and this must first be consumed to minimum stock levels before additional quantities are ordered.

• Consumption of the supplier’s old fuel stock (at older rates). The fuel supplier also has fuel storage facilities, and this old stock must be fully consumed before Anglec can be invoiced at the new prices.

In addition, once the surcharge is adjusted, it is important to note that the customer’s bill is impacted approximately one month later (as bills received are based on consumption in the previous cycle).

How is the fuel surcharge calculated?

As per the Electricity Ordinance, Anglec’s electricity tariff is subject to a surcharge of 1c per kWh for every 10c per gallon increase in the price of fuel oil over $3.64 per gallon. Or as a formula;

FS = (PD – 3.64) / 10
where;
FS = Fuel Surcharge
PD = Anglec’s diesel cost (EC Dollars per Imperial Gallon greater than 3.64). This is based on a 4-6 week weighted average.
The table above shows the cost of 500 units of electricity with varying fuel prices

How realistic is the surcharge formula when we consider today’s diesel prices?

The fuel surcharge mechanism is currently being reviewed as key factors (such as fuel prices and volatility) have changed significantly since the creation of the formula in 1991. Some of the issues that the new tariff structure will address are:

• Providing the flexibility to accommodate renewable energy usage patterns;

• Providing greater transparency (for independent verification of fuel charges)

Besides the fuel surcharge, are there any other costs that affect my electricity bill?

Yes – An Environmental Levy. The Electricity Act and attendant regulations require Anglec to collect and pay to the Government of Anguilla via the Treasury a sum of money equal to 5% of the electricity charges billed to each of the Company’s consumers. Anglec is currently working on a system that will show the Environmental Levy as a separate line item on your electricity bill. Changes will be completed in the near future.

I would like to calculate the surcharge for myself but I need more information. How can I independently verify fuel price information?

The price Anglec pays for diesel fuel can be divided into three parts, namely: The Base; The Escalator; and Government Duties.

The Base is the most important and largest component. Being the only variable (and unpredictable) component, it also controls price trends. The Base is derived from Caribbean postings for 45 Cetane Low Sulphur (0.2%) Gasoil as published in the Platts Oil Price Report. The Platts Company is a leading and trusted global provider of energy information. For independent verification, a subscription to this service can be obtained through their website at http://www.platts.com. The Escalator is a small fixed premium paid to the fuel supplier to cover their overheads (such as tanker freight and operating costs). This is determined when fuel supply contracts are negotiated. Government Duties are also fixed and paid to the Government of Anguilla when fuel is imported.

Anglec reports its fuel surcharge costs and fuel surcharge recovery as part of its audited financial statements in the company’s Annual Report, and this information can be used as a bottom-line check.

Anglec hopes to provide an easy mechanism for its customers to validate movements in the surcharge. The company is currently evaluating the best approach to accomplish this, and will inform its customers in the near future.

What is the purpose of the tag on my meter?

The plastic blue or red tag is a “tamper-resistant” seal. This seal prevents the meter from being removed or modified by an unauthorized person. Each seal has a unique number imprinted on it, which is linked to your billing account in Anglec’s computer system. When Anglec’s meter readers encounter broken or missing seals, meter readers are required to report the matter and an investigation is carried out. Tampering and/or the removal of an Anglec meter by an unauthorized person is a criminal offence that can result in imprisonment for the convicted offender.

Last week, Anglec had a scheduled outage that lasted six hours. Although Anglec made the announcement on the radio, I am not a frequent radio listener. How can I be informed of outages that will affect me?

In addition to radio announcements, Anglec posts outage information on its website. To access outage information, go to http://www.anglec.com and click on “Outages”

Last week, my toaster got damaged after a power outage. Why didn’t Anglec reimburse me?

While Anglec strives to provide a consistent and reliable supply, there are instances when the consumer’s quality of supply is affected under circumstances that cannot be attributed to negligence on the part of the company. Some case examples are:

1. When the quality of supply is affected by an Act of God (including abnormal weather conditions and lightning)

2. When the quality of supply is affected by unavoidable accidents (including road accidents)

3. When the quality of supply is affected by a faulty internal circuit design or circuit overloading (internal to the customer).

4. When the quality of supply is affected in any reasonable act of protecting the interests of the consumers at large (such as emergency remedial work and planned outage operations)

In most cases, a proper grounding system and/or electrical design will mitigate the effects of these types of incident. We continue to encourage all of our customers to have their electrical installation(s) routinely checked by a qualified electrician.

- Press Release

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