A fuel surcharge is a cost added to an electricity bill to help cover the cost of fuel used to generate electricity. It’s usually added to your bill on a per-unit basis each month and often revised every quarter.
The fuel surcharge is calculated based on the cost of fuel and the amount of electricity used. It’s the cost of fuel required to provide each kilowatt-hour of electricity. Why does it change? It changes because the price of fuel fluctuates, which can be affected by external factors like the market. How does it differ from non-fuel charges? Non-fuel charges cover the cost of producing and delivering electricity such as equipment and facility maintenance in addition to fuel. Since the topic of fuel surcharge is vast and difficult to understand VINLEC is taking advantage of the situation. If the fuel surcharge rate in principle must be calculated or revised every quarter, why do we hardly hear any announcements?
VINLEC convalesces income from consumers through taxes approved by the Cabinet. These taxes are determined based on the expected cost approved for the year. However, there is often a difference between the approved cost and the actual cost incurred. The difference between both can be at least 75% of VINLEC’s expenses. VINLEC needs to pay the fuel suppliers in advance and needs working capital that can support stock for a certain time, typically one month. S, to recover periodic revenue to address the change in fuel price, VINLEC passes on the fuel surcharge tax to the customer.
The tax, which is calculated on a per-unit basis each month, is often much higher than your consumption charge. So, currently, in our country, consumers are being charged two major taxes or fees alongside their consumption charge — VAT and fuel surcharge. The evil of these two taxes or fees on our light bill is unnecessary. VINLEC is a monopoly and has yet to show a serious interest in any other alternative to fuel-based electricity delivery. I don’t think we have the resources or capacity to go in the direction of hydroelectricity. But what about solar electricity? We have an abundance of sunlight throughout the year. In my opinion, the investment in solar electricity is a prudent option. We can cut down on the huge electric bill the government has to pay VINLEC each month, by putting solar panels on schools, street light poles, hospitals, etc. In the absence of this, the population is paying twice for electricity.
Some years ago, before the VAT was added to the light bill, many residential and commercial customers were finding it extremely difficult to pay their bills.
Now, with all three charges many are sometimes finding it impossible to pay their light bill on time, which will, of course, end in their services being disconnected. Many have had panic attacks, migraines and added indebtedness when month-end approaches. VINLEC and the government, by extension, need to find some alternative sources of generating electricity other than fuel generators. This must be done to lessen the burden on the consumers and removing this evil tax.
Our economy is not robust enough for an essential utility like electricity to carry such a huge tax burden. The way the fuel surcharge is calculated is an evil act on humanity. Electricity is too important to have such an evil energy possessing it. Consumers need to stand up and demand a transparent and accountable system of explaining why the VAT and fuel surcharge on electricity are necessary. We have stood in the shadows of this monopoly for too long now. Their actions and policies are now acceptable and standard behaviour. Give thanks.
Nigel Jacobs (Businessman and farmer)
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If the costumers are to share in that cost then they should be getting a discount on their bills
You must have a fixed cost of producing electricity , or let everyone uses solar power and sell the excess to vinlec
The fuel surcharge is an unjust charge. We all know is an engine is in tip top condition it will burn less fuel than it would if not properly maintained. So if Vinlec doesn’t maintain their engines properly we have to pay for their tardiness and that’s unfair because there is no oversight to make sure that they do
Vincentians are blind to evil things that are happening in front of them, like this evil tax. Vincentians are desensitized to the evils the government is doing to them. Like when James won by one vote giving the ULP a majority in parliament was one. Like when ULP lock up people for marijuana when they legalized it. When there is a murder happening almost every week no reforms on sight. When fishers are left to their own devices despite loosing almost all of their income due to hurricanes. When the assistant DA and his girlfriend shoot a citizen on his own property and nothing comes out of it. Like when government tell people what to sing in a calypso or you are not able to enter competition. Like when government have school children carrying the burden of damaged school buildings. Like when the Grenadines are treated unimportant because they don’t vote for ULP. Like when Vinlec charge huge fuel taxes on top of the normal electricity bill and they can’t fix or repair the situation in the Grenadines.
Unfortunately in simple terms it’s a rip off, fact even as a private home consumer being able to have solar is great, but what Vinlec pay you is only 0.45cents per unit they charge you 0.50cents plus fuel surcharge at 0.65 cents per unit ???? So question is why are we paying so much ??? Again middle of the road to poor Vincentians suffering.
Helpppppppppppppppppppp dats all me saying
Ouch!
I fed up of vinlec and its overcharging me to pay something so high! I have never in my life burned 500$ worth electricity. I don’t even have everything a household needs to function and this is outrageous! TAKE YOUR ELECTRICITY AND GO. I WIILL SPEND MY MONEY GET SOLAR PANELS.
Vincentians would not pay this no mind, come together an stand up u say? Impossible when 89% of the population rather suffer. They rather ignore things like this think it’s not affecting them but the time drama start they on it.
#foolsleadingfools
Only the fuel charge? Which is a tax by another name. What about the tax on salt? These disgusting ULP politicians have no shame what so ever. All they good for is lies and deception.
The fuel surcharge is too high the goverment need to look into sola energy
We de people love um so. everthing dem do dem darm right, 5 in a row. Let dem pay now for the cheap electricity up soufreire.
the most frightening thing is the people who will still support them and curse you for that devil cult party.