One of the challenges that the Bahamas Electricity Corporation (BEC) is facing this year is an increase of customers, said Minister of State for the Environment Phenton Neymour yesterday.
In an interview with The Nassau Guardian, Neymour explained that although BEC has benefited from nearly 3,000 additional customers being serviced this year, the demand has increased the need for additional diesel fuel, which has increased costs.
According to Neymour, BEC has 106,000 customers.
He said that, "as a result of [this] we have a three cent increase (per kilowatt hour) in the fuel charge.  There is no longer a fuel surcharge."
Neymour said in the middle of October that he did not anticipate a reduction in fuel charges due to the high price of oil at the time, despite BEC projecting a reduction weeks earlier.
On Monday, BEC Chairman Michael Moss said that customers can expect their fuel charge to increase for the month of November due to increases in oil costs.
Moss said customers can expect to pay about $0.26 per kilowatt hour for electricity consumed in November, which is a $0.03 increase over last month's fuel charge of about $0.23.
BEC officials expected a decrease in electricity bills due to an expected drop in fuel prices as has historically been the case around this time, and because of an increase in production at the Clifton Pier plant, Moss explained Monday.
However, while there has been increased production at the plant, fuel prices have increased.
Neymour said yesterday that, "Many customers would recognize as they go to the service stations that they would have seen a decrease in gasoline, but the price of the lower fuel products like diesel and heavy fuel oil have increased based upon international costs."
He pointed out that over the summer BEC had consumed considerable amounts of heavy fuel oil and diesel oil, which cost the corporation more.
"If one were to compare the prices this year versus last year, the cost of the heavy fuel oil has increased 50 percent, which is significant," he said, adding that, "fuel bills today are 50 percent more than last year but they are in fact 10 percent less than they were in 2008."
When asked if this increase will result in disconnections for many customers, Neymour said that may not happen.
"Because it's cooler now, customers are using less air conditioning so their consumption is expected to decrease," he said.

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