The Public Utilities Regulatory Commission (PURC) is pleased to announce the finalisation of an Interim Tariff structure in accordance with Section 28 of the Tariff-Setting Methodology (TSM) regulation SRO 20 2022.
This milestone is the outcome of an intensive series of consultations and collaborative sessions, involving key stakeholders, including Grenada Electricity Services Limited (Grenlec) and heralds a transformative shift in Grenada’s retail electricity landscape.
The PURC’s mandate as outlined in the Electricity Act of 2016 (as amended) includes the assessment and establishment of rates charged by a network licensee (Grenlec) to consumers and ensuring that these rates are fair and reasonable for consumers and that Grenlec can earn profit to secure its long-term viability. The interim Tariff thus performs the dual role of advancing consumer interests and safeguarding Grenlec’s economic sustainability.
Effective 1 October 2023, this Interim Tariff addresses longstanding energy sector inefficiencies through the recalibration of renewable energy classification, eradication of non-fuel disparities, and the curtailment of exorbitant fuel cost over-recovery.
The tariff comprises a non-fuel charge designed to enable the Utility to achieve a fair profit while considering its diligently accumulated service-related expenditures. Notably, the tariff introduces a renewable energy charge, ensuring accurate billing based on energy consumption proportions (renewable vs. fuel). This approach passes cost advantages to consumers as renewable energy integration expands.
In addition, the tariff incorporates a fuel charge mechanism intended to address the over or under-recovery of fuel costs. This occurrence was frequent under the previous system. Given the universally recognised understanding that fuel costs are transferred as pass-through charges to consumers (with no profit intended for the Utility), the Commission anticipates that any surplus fuel costs the Utility has levied, be reimbursed to the people of Grenada, Carriacou, and Petite Martinique.
The Public Utilities Regulatory Commission (PURC) has the responsibility of regulating the electricity sector and ensuring that Grenadians are provided with dependable and sustainable services at fair and equitable prices. For more information about the Interim Tariff or other related information, visit our website www.purc.gd, or call our office at 437-1602.
PURC