by Linda Straker
- End of credit from 2024 fuel charges caused increase in electricity bills issued after 14 August
- Fuel Adjustment Clause (FAC) adjusts fuel charge up or down
- 2016 Electricity Supply Act provided for electricity in Grenada to be liberalised
The end of credit from the 2024 fuel charges, which ended in June/July, is one of the reasons that Grenlec, Grenada’s lone electricity company, said has caused an increase in electricity bills issued after 14 August 2025. The fuel charges credit ended in June/July, while increased world fuel prices because of geopolitical events pushed the company’s fuel bills up between June and August.
The Fuel Adjustment Clause (FAC) adjusts the fuel charge up or down to remove any difference between what Grenlec paid for fuel and the amount that customers are billed through the fuel charge for the prior month. The FAC effective 8 September is $0.12420, and it will be applied to usage in the previous billing period, while the fuel charge effective 8 September is EC$0.5074 per kilowatt hour (kWh) or unit calculated monthly.
Grenlec’s notice said that its customers are not immune to the fluctuations in the global cost of fuel, which is influenced by events beyond Grenada’s borders. Customers, the release advised, “should adopt energy conservation measures that can ease the impact of their monthly bills.” In its July monthly customers bulletin, Grenlec said that as of 9 July, the fuel charge had decreased by 12¢, from 61¢ in January to 49¢ in June 2025. This, at the time, was due to decreases in world fuel prices.
Emmalin Pierre, Opposition Leader and political leader of the New National Party (NNP), said she cannot understand how, at a time when a rising cost of living is making it almost impossible for many families to make ends meet, the Government which has the majority shares in Grenlec, would support and facilitate this increase. “At this time, the Government should be using its influence and power to reduce the burdens facing our people by reducing the cost of electricity,” she said, recalling the action taken by the NNP administration during the Covid-19 pandemic period. “This was done before by the NNP administration when there was a reduction in the levy and the non-fuel charges. This is the kind of action we expect from the Government.”
WRB Enterprises (WRB) and Grenada Private Power Limited (GPP) announced that they had executed a Settlement Agreement with the Government of Grenada, effective 24 December 2020. Under that agreement, WRB, GPP, and related parties transferred their majority stake in Grenlec to the Government in exchange for the payment of US$63 million, effectively making the Government of Grenada the majority shareholder of Grenlec.
The Government’s repurchase of WRB–GPP’s shares in Grenlec was based on a Share Purchase Agreement (SPA) entered into in 1994. Government’s enactment of the 2016 Electricity Supply Act triggered the repurchase event under the SPA and left WRB–GPP with no choice but to proceed with arbitration. The 2016 Electricity Supply Act provided the environment for electricity in Grenada to be liberalised.
