Nevlec Notice: Fuel Cost Adjustment Factor (Surcharge) Calculations

NEVIS ELECTRICITY COMPANY LTD

FUEL COST ADJUSTMENT FACTOR (SURCHARGE) CALCULATIONS

AUGUST, 2014

Formula:

FCAF = C x (A – B)
D

where, FCAF = The Fuel Cost Adjustment Factor (Fuel Surcharge)
A = Current Month’s Average Fuel Price (EC$/IG)
B = Average Fuel Price at Base Tariff (EC$/IG)
C = Current Month’s Fuel Usage
D = Current Month’s Electricity Production (kWh)
Fuel Cost Adjustment Factor for AUGUST, 2014:

A = Average Fuel Price for JULY $10.53($/IG)
B = Fuel Base Price $ 2.43 ($/IG)
C = Fuel Used for A JULY 277,996(IG)
D = Electricity Production for JULY 4,636,026 kwh
FCAF (Surcharge) = 277,996 x ($10.53 – 2.43)
4,636,026

COMMERCIAL = $0.49/kWh
DOMESTIC = $0.37/kWh

NB. A Twenty Five percent (25%) reduction for the Fuel Surcharge has been applied to the bills of Domestic Customers ONLY.

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