Power Bills Higher; Pelican Energy says Global Market Conditions to Blame

By Deandrea Hamilton

PROVIDENCIALES, Turks and Caicos Islands — Electricity customers across the Turks and Caicos Islands are being warned to brace for higher power bills in the coming weeks as Pelican Energy TCI says turmoil in global fuel markets is driving up the cost of generating electricity.

In a statement issued on May 28, the utility advised that international fuel prices have risen sharply due to instability in parts of the Middle East and the resulting pressure on global energy supply chains. The company says those higher fuel costs are expected to impact the fuel factor rate applied to electricity bills beginning in June and July.

According to Pelican Energy, the fuel factor rate is projected to increase from approximately 17.5 cents to 31.1 cents per kilowatt-hour, an increase that could add between $15 and $140 per month to residential electricity bills, depending on how much electricity a household consumes.

The company stressed that the increase is not tied to its base electricity rate and does not represent a decision by the utility to raise prices.

“The projected increase is not the result of a change to the electric rate (base rate) or utility pricing decisions but is the direct result of international fuel price movements beyond the utility’s control,” the company explained.

Pelican noted that fuel used to generate electricity is purchased in advance to ensure a reliable power supply. Because of that purchasing cycle, changes in global oil prices can take several weeks before they are reflected on customer bills.

The timing is particularly challenging for consumers because the increase coincides with the start of the summer season, when higher temperatures typically lead to increased electricity use for air conditioning and cooling.

Pelican President Devon Cox acknowledged the impact the higher costs will have on households and businesses already facing cost-of-living pressures.

“We recognize the challenges that rising fuel prices place on households and businesses, particularly at a time when cost-of-living concerns remain front of mind. We do not take these impacts lightly and remain committed to working closely with the TCI Government, our key stakeholders, and our customers.”

The utility says it is simultaneously accelerating investments in renewable energy projects aimed at reducing long-term dependence on imported fuel.

Cox pointed to several initiatives now underway, including utility-scale renewable energy installations in Providenciales, new microgrid developments on sister islands following the successful completion of the North Caicos solar-plus-battery project, and the continued expansion of rooftop solar partnerships.

“These investments are expected to significantly reduce reliance on imported fuel over time and help stabilize energy prices for our customers,” Cox said.

South Caicos customers are expected to experience the higher fuel factor rate first, while customers on other islands will likely see the increase reflected in bills issued at the end of July.

Pelican is encouraging residents and businesses to monitor their electricity usage closely, take advantage of energy conservation measures and use the company’s online bill estimation tools to better understand how the higher fuel factor could affect monthly expenses.

For consumers, the message is straightforward: while the increase may appear on local electricity bills, Pelican Energy says the cause lies thousands of miles away in global energy markets.