The Barbados Light & Power Company (BL&P) has given its full support to the Government’s decision to maintain a lower Value Added Tax (VAT) rate on electricity until the end of September.
The utility company said on Thursday that customers can expect additional savings on their electricity bills.
Minister in the Ministry of Finance and Economic Affairs Ryan Straughn announced in Parliament on Tuesday that BL&P’s domestic customers will pay 7.5 per cent VAT on the first 250 kilowatt-hours (kWh), instead of the usual 17.5 per cent rate, for another eight months, extending the arrangement that was put in place from August 1, 2022, to January 31, 2023.
According to Rodney Dottin, Manager, Customer Care at BL&P, this represents a monthly savings of about $14, based on February’s Fuel Clause Adjustment (FCA) for customers using a minimum of 250 kWh.
The FCA, which is a mechanism used by the power company to recover the cost of fuel used in the production of electricity, varies depending on global oil prices.
Dottin said BL&P was pleased to see world oil prices continue to decline from a high of almost 50 cents per kilowatt hour in mid-2022 to about 32.5 cents in January 2023 and remain stable in February.
BL&P advised customers that in addition to the VAT savings, they could cut electricity costs by conserving energy and taking advantage of the utility company’s ten per cent early payment discount available to residential customers. (BT/PR)
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