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Fuel surcharge to reflect on April billing
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Posted on Mar 17 2005
Utility customers can expect their next electric bill to be over 10 percent higher, as the Commonwealth Utilities Corp. starts assessing the 1.5-cent fuel surcharge.
CUC comptroller Sohale Samari said the fuel surcharge will reflect on the April 2 billing for the customer’s March consumption.
With the fuel surcharge, households that used to pay an average of $100 per month will now have to fork out about $113.60 for the same power consumption.
Meanwhile, a business normally billed $2,500 per month for electricity will now have to pay an extra $340 for the same power usage.
The fuel surcharge will increase electric rates by 1.5 cents per kwh across-the-board. Current rates are at 11 cents per kwh for households and 16 cents for government agencies and businesses.
CUC expects to collect about $500,000 a month if the 1.5-cent surcharge is implemented. The additional revenue cannot be used for any purpose other than fuel expenses.
A CUC financial report showed that the cost of fuel used for power generation soared by 56 percent during the last quarter of calendar year 2004. From only $8.8 million in October to December 2003, CUC’s fuel expenses climbed to $13.8 million during the same period in 2004.
