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Case Studies Figure 15: GRENLEC Revenues & / E W Source: GRENLEC 2003-2009 Electricity prices are similarly calculated as in Barbados. The domestic, commercial, industrial and street light customers are charged based on a fluctuating fuel charge and a fixed non-fuel charge. Additionally, all customers have to pay a government charge of 5% of the non-fuel charge. Domestic customers are also charged an Environmental levy, depending on consumed units (GRENLEC 2010). Domestic average electricity cost is very high. The reason is the high fuel charge, which increased considerably with the global oil price trends. In 2003, fuel charge was about 40% of the basic electricity rates and increased to 42.7% in 2005. The surcharge increased from approximately 97 USD/MWh in 2004 to 139 US/MWh in 2005 (Loy 2007). Between January and July 2008, when oil prices increased by 60%, Grenada’s fuel charge climbed up to 0.30 USD/kWh (0.80 ECD/kWh) and resulted in an electricity price of 0.44 USD/kWh in August 2008, Figure 16. Customers complained bitterly about those high rates. It declined to a fuel charge of 0.19 USD/kWh (0.50 ECD/kWh) and an electricity rate of 0.33 USD/kWh by the end of 2008 (GRENLEC 2009). According to John Auguste (pers. comm. 27 April 2010), Senior Energy Officer in the Ministry of Finance, Planning, Energy, Foreign Trade & Co-operatives, the average electricity prices in Grenada are above 0.80 ECD, which are 0.27-0.30 USD. At the time of the research, the electricity rate was 0.85 ECD, which was equivalent to 0.31 USD (Burkhardt, D. pers. comm. 27 April 2010) 42 't DPDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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