Press Release | May 09, 2008

LUCELEC PROVIDES NEARLY $5M IN REBATES TO CUSTOMERS
“Hotel & Industrial Sectors Getting Some Relief”

The St. Lucia Electricity Services Limited (LUCELEC) has made nearly $4.8 million available for redistribution (as a rebate) to qualifying customers. This means that apart from domestic and commercial customers who are already paying a subsidized rate for electricity, hotel and industrial customers are now getting some relief.

Under the Electricity Supply Act, the St. Lucia Electricity Services Limited (LUCELEC) is required to set aside 50% of profits above the Company’s allowable rate of return each year. Based on the Company’s financial performance in 2007, nearly $4.8 million is being redistributed to qualifying customers this year. Such qualifying customers are identified by the Electricity Supply Act as “industrial and hotel consumers” and “consumers or groups of consumers in need of special protection” as determined by the Minister of Finance.

As a result of the rebate, hotels and industrial customers will realise a reduction of nearly seven cents on their standard unit rate for electricity. The rebate is being credited to their accounts and is reflected in their monthly bills. Domestic and Commercial customers have always paid a subsidized rate for electricity as the tariffs for these respective groups of customers have always been levied well below the cost of providing service to them.

With fuel prices setting new record highs in 2007, the basic tariff to all categories of customers increased in February by 3.9 cents per kilowatt hour (kWh) or approximately 5% to reflect the average price paid for fuel in 2007. This basic rate is independent of the Fuel Cost Adjustment Factor (fuel surcharge) and is reviewed in January of each year. The formula for such adjustments is prescribed by law.

According to LUCELEC’s Managing Director Trevor Louisy, LUCELEC is working relentlessly at improving operational efficiencies and productivity to actually reduce its non-fuel operating costs in real terms. “Over the last five years we have seen our expenditure on fuel rise by 144%. By comparison, the non-fuel component of the tariff for the last ten years has remained relatively constant. In fact, the non-fuel component of the base tariff for 2007 at 40.4 cents per unit is slightly lower than in 1999. In other words, LUCELEC has been keeping the costs that it has direct control over to levels that are below the rate of inflation,” he added.

Mr. Louisy observes that oil prices continue to rise on the international market adversely affecting the price of electricity to the consumer. During the first quarter of 2008 the average price of fuel was already 33.2% over the 2007 average. LUCELEC, he says, has been exploring several options for using alternative fuels. Although some of the company’s plans are at a relatively advanced stage, he notes that it will be some time before these technologies can translate into rate reductions to the customer. In the meantime, he recommends that customers continue to practice energy efficiency as the most effective and immediate means of controlling expenditure on electricity.

LUCELEC expects to launch an energy efficiency campaign within the coming weeks with a view to getting the public to adjust electricity consumption habits. The Managing Director says contrary to popular belief, while the Company must ensure it can meet capital costs for expansion and provide a return on investment to its shareholders, LUCELEC has a duty to its customers, the environment and the country to ensure more sustainable approaches to energy usage. “It is a responsibility we take very seriously and these values are enshrined in our strategic objectives,” he ended.

Click here for chart comparing the non-fuel and fuel components of the tariff (PDF Format)

Press Release | March 12, 2008

LUCELEC SUPPORTS ENVIRONMENTAL SUSTAINABILITY
$10,000 for Training in Watershed Management

Through the training, students and teachers in St. Lucia will be taught how to evaluate and measure watersheds and develop a plan of action to implement improvements to water quality. The training is part of a wider Ridge to Reef Watershed Programme in support of four watersheds in St. Lucia. It is being implemented by the Caribbean Student Environmental Alliance (Caribbean SEA).

Caribbean SEA is an agency based in the United States which seeks to empower students to take care of, clean and protect watersheds and the environment around them. The organisation was formed in 2004 and began its work in St. Lucia with the support of LUCELEC. Since then the organisation has expanded its work in St. Lucia and to several Caribbean islands, attracting funding from other local and international organisations.

LUCELEC’s Corporate Communications Manager Roger Joseph says the donation is consistent with LUCELEC’s mission, part of which is to be a catalyst for social and economic development in St. Lucia. In fact, he added, one of areas in which the Company measures its performance is in the promotion of environmental stewardship.

“This includes compliance with national and international environmental standards on emissions and waste management, minimizing the Company’s impact on and reducing risks to the environment, and playing a leading role in the preservation and management of the environment within LUCELEC’s sphere of influence,” Joseph explained.

The donation was made through the LUCELEC Trust Company Inc., a special fund set aside for supporting worthy charitable, social, environmental, and educational projects.

The St. Lucia Electricity Services Limited (LUCELEC) is observing the month of March as Safety Month. The theme for the observance is “Healthy Lifestyles and Safe Working Conditions for All”. The opening is scheduled for Monday, March 17, at the Company’s Cul De Sac facility with internationally renowned expert on stress reduction, Dr. Ken Nedd down to do the keynote address. A series of activities including Diabetes and Hypertension screening, HIV and AIDS Awareness, and training in Stress Management, Fire Safety, Disaster Management,

LUCELEC Worker in Mandatory Safety Gear

This year the theme for Health and Safety month is "Sharing the Safety Message."

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