Forecasting shows a huge drop in fuel factor – up to 80% by October
#Providenciales, Turks and Caicos Islands (Tuesday, June 11, 2020) – Over the next four months, FortisTCI is projecting that electricity consumers will see significant reductions in their energy costs by way of a declining fuel factor. Looking ahead, customers can expect the fuel factor to fall on average by approximately 80% in October, bringing added economic relief to homes and businesses across the Turks and Caicos.
Customers will see a decline in the fuel factor on their June electricity bills. However, the company’s forecast models indicate that the most significant decreases will start in July with an approximate 52% reduction in the fuel factor compared to January 2020. July’s decline is followed by a 68% drop in August, a 73% drop in September, before reaching an 80% decline in October, compared to January 2020’s fuel factor.
The decline in energy costs comes as a result of the near historic drop in world market fuel prices this past March and April. While the fuel supply chain presents a lag in effective prices, FortisTCI passes these reductions to customers as quickly as possible. The projected decrease in fuel cost will result in an overall reduction of electricity bills. Over the period at its highest impact, the company anticipates that residential customers will see their electricity bills reduced on average by approximately 23% to 27%. Commercial customers can expect, on average, an estimated 20% reduction in bills, medium hotels and supermarkets, on average, will see an estimated 23% reduction and large hotels, an approximately 26% reduction on their electricity bills when compared to January 2020.
FortisTCI President & CEO Eddinton Powell said, “The company has closely monitored the decline in global fuel prices and is glad to see the reduction in cost from our fuel supplier that can now be passed on to our customers. The reduction in the cost of energy and the fuel factor will have a positive impact and provide further economic stimulus to our customers. While this means a reduction in electricity bills, customers must continue to manage their electricity consumption, especially as some continue to spend more time at home due to the pandemic, and as we enter the warmer summer months.”
The information provided is a projection, and fuel prices may differ at the time of purchase as global crude and diesel commodity markets remain very volatile. For more information on the fuel factor, click here.