23 February 2012
News & Events
   
 
 

LUCELEC WINS CORPORATE SOCIAL RESPONSIBILITY AWARD

LUCELEC IMPROVING GENERATION CAPACITY

CariCRIS REAFFIRMS LUCELEC’S SOUND CREDIT RATING

LUCELEC LAUNCHES “ENERGY CHAMPS”

HIGHER THAN NORMAL ELECTRICITY CONSUMPTION FOR SOME

24 GET LUCELEC SCHOLARSHIPS

LUCELEC GIVES NCF TELETHON $30,000 JUMP START

LUCELEC DONATES NEW COPIER TO BOGUIS PRIMARY SCHOOL

LUCELEC STAFF APPRECIATION NIGHT THIS WEEKEND

LIGHTNING ARRESTOR FAILURE TRIGGERS SYSTEM SHUTDOWN
POWER RESTORATION POST TOMAS COMPLETE
UNION STATION ENERGISED WELL AHEAD OF SCHEDULE
POWER TO SOUFRIERE RESTORED
LUCELEC CONTINUES ITS SUPPORT FOR JUNIOR ACHIEVEMENT
NEW FLOORS FOR MONCHY COMBINED
CUSTOMER APPRECIATION WEEK AT LUCELEC
LUCELEC'S FUEL PRICE HEDGING PROGRAMME

LUCELEC WINS CORPORATE SOCIAL RESPONSIBILITY AWARD


St. Lucia Electricity Services Limited (LUCELEC) has won the award for Corporate Social Responsibility in the 2012 St. Lucia Business Awards organised by the St. Lucia Chamber of Commerce, Industry & Agriculture. The announcement was made at the Awards ceremony on Saturday, January 28.

The award recognises an organization that demonstrates “consistent excellence in responsible sponsorship, corporate philanthropy, community outreach, environmental responsibility, or staff support”. Specific initiatives including support for community projects, enhancement of conditions for work and home life within the community are considered, and the economic and social impact of the initiatives must be measurable and sustainable.

In receiving the award on behalf of the Company, Corporate Communications Manager Roger Joseph noted that it was a great honour for the Company to be recognised for its work in that area. He attributed the win to the Company’s holistic approach to Corporate Social Responsibility which embraces organizational governance, respect for human rights, its labour practices, care for the environment and consumer issues, fair operating practices, and community involvement and development.

“LUCELEC does a lot of benchmarking against regional and international utilities and standards in our operations. Our participation in the Business Awards is an extension of that benchmarking process to see how we fare against our peers. It was also important to support the Chamber of Commerce in its efforts to promote the objectives of the Awards programme not just through sponsorship but through active participation in the Awards,” Joseph added.

This was the first time that LUCELEC had submitted an entry for consideration in the Business Awards.

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LUCELEC IMPROVING GENERATION CAPACITY

Castries, December 21, 2011 – St. Lucia Electricity Services Limited (LUCELEC) has taken major steps to improve its generation capacity.

Last month (November) the Company commissioned two new mobile Caterpillar generators at the Union Power Station with a combined capacity of 2.5 megawatts (MW). The main purpose of these generators are to ensure that the Company is able to provide electricity in the event of major disruptions to the network as experienced in 2010 with Hurricane Tomas, or in instances when other generators are unavailable due to planned maintenance or unplanned events. As such, they will be run only if needed. They also provide the company with required spare generating capacity as mandated under the Electricity Supply Act (as amended).

Additionally, this month (December) LUCELEC finalised a contract for the delivery and installation of a new 10 MW engine for Cul De Sac Power Station. The new engine will be provided by Wärtsilä of Finland and will bring the number of generators installed at Cul De Sac to 10. It is expected to be commissioned in December, 2012.

These two investments totalling over seventy three million dollars (EC$73.1M) form part of the Company’s three stage plan to meet the short, medium and long term generating capacity requirements for St. Lucia. They translate into improved reliability of the electricity supply, and demonstrate the Company’s commitment to sustaining current, and facilitating new, economic and social development on the island.

These projects and other on-going capital works into 2012 are being funded through a one hundred million dollar (EC$100 million) long term loan from the National Insurance Corporation (NIC).

LUCELEC’s Managing Director Trevor Louisy says civil works associated with the installation of the new engine at Cul De Sac will begin in January and will continue into December 2012, providing a welcome injection of capital into the local economy.

The long term plan entails the construction and commissioning of a new power plant in the south of the island which will be required by the end of 2016 based on the latest load forecast estimates.

This three-stage generation expansion plan ensures that LUCELEC will continue to meet the country’s energy requirements well into the future and minimise financial, reputational and economic risks for the company and country.

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CariCRIS REAFFIRMS LUCELEC’S SOUND CREDIT RATING

Castries, December 21, 2011 – Caribbean Information and Credit Rating Services Limited (CariCRIS), the Caribbean regional credit rating agency, has reaffirmed a CariBBB rating for Saint Lucia Electricity Services Limited (LUCELEC). The rating indicates that LUCELEC’s creditworthiness, adjudged in relation to other obligations in the Caribbean, is adequate.

In a media release dated December 13, 2011, CariCRIS notes the ratings on LUCELEC “continue to reflect the company’s monopoly position in Saint Lucia, healthy financial profile and favourable operating efficiency.”

According to LUCELEC’s Financial Controller Earl Estrado the rating reaffirms that LUCELEC continues to maintain its high standards of financial, technical and operational efficiency that have served the company and the country well.

Estrado says such a favourable credit rating ensures that LUCELEC obtains the best possible financing for its development programmes and reassures its stakeholders of its solid reputation as a Company to do business with.

“The rating is particularly important at this time because as the Company prepares for its next phase of generation expansion, its sound credit rating will play a significant part in securing both debt and equity financing as necessary to ensure its sustained growth,” Estrado added.

LUCELEC expects to safeguard its rating through continuous improvement and the setting of high standards.

CariCRIS’ regional rating scale includes countries in the Caribbean from Bahamas in the north to Trinidad & Tobago in the south and includes Central and South American territories such as Belize, Costa Rica, Panama and Suriname.

See: CariCRIS Media Release and Detailed Ratings Rationale

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LUCELEC LAUNCHES “ENERGY CHAMPS”
Power Company Initiates Customer Incentive Campaign

Castries, October 6, 2011 – St. Lucia Electricity Services Limited (LUCELEC) has launched a customer incentive campaign branded “LUCELEC Energy Champs”.

The campaign is designed primarily to reward customers for their diligence in paying their bills in full, while providing them with energy efficiency tips to help customers reduce energy consumption, save some money, and minimise their environmental impact on the planet.

Customers who pay their bills in full from October to December 31, 2011, will get the opportunity to win cash prizes each month, and a grand prize of a home or office makeover with energy efficient appliances valued at ten thousand dollars for domestic customers and twenty thousand dollars for commercial customers. These grand prize draws will take place during the first week of January 2012.

The power company says everyone will have an opportunity to win energy efficient prizes every week by answering energy efficiency related questions in an online quiz on the Company’s website.

Speaking at a press launch of the campaign on October 6, LUCELEC’s Managing Director Trevor Louisy said this type of customer incentive campaign is new to LUCELEC but is consistent with its strategic priorities for the next few years.

“As a company we are constantly evolving to maintain our cutting edge, not just in terms of the delivery of electricity and related services to our customers, but also in finding new ways to contribute to the social and economic development of the country and in caring for our customers,” Louisy added.

Louisy notes that “LUCELEC Energy Champs” is the initial phase of a wider and longer term Energy Efficiency campaign that LUCELEC expects to unfold during 2012 under the theme “Reduce Energy Consumption, Save Money, and Save the Planet”.

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HIGHER THAN NORMAL ELECTRICITY CONSUMPTION FOR SOME

The St. Lucia Electricity Services Limited, LUCELEC, is advising that some customers may be seeing higher consumption of electricity in July and August over previous months in the year.

The power company says this is a usual trend over the years for some domestic and commercial customers.  The increased consumption is generally a result of two major factors.  The first is higher temperatures during these months and the increased use of cooling equipment such as fans and air conditioners.  The second is that children are at home on vacation and there is higher than normal use of electricity during the day.

“With children at home during the day, the television stays on longer, the computer is being used more, the refrigerator is being opened more often, and because it is warmer, the fans are staying on all day.  Generally, appliances that tend to be turned off during the day when children would normally be at school, are staying on, sometimes throughout the entire day, now that they are home,” says LUCELEC’s Corporate Communications Manager, Roger Joseph.

All of this, Joseph notes, results in higher than normal consumption of electricity for the domestic sector, particularly in homes which have children.

For the commercial sector, Joseph explains, the increased consumption is primarily related to cooling equipment.  “The warmer temperatures during the July and August months mean that air conditioning equipment is working harder and consuming more electricity.” 

What this means for customers, Joseph says, is that their bills may reflect the higher than normal consumption that is generally evident at this time of year.  Customers, he adds, can tell if that is the case by reviewing their bills thoroughly.

“The bill that customers receive has information on the amount of units of electricity the customer has used over the preceding three months, which can be compared with what was used for the current month.  That way customer can tell if they have used more electricity than usual or track their usage over the period. Most customers just look at the amount to be paid on the bill and don’t check the other parts of the bill which provides very useful information that can help them understand changes in the amount they’re paying for electricity for the month,” Joseph adds.

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24 GET LUCELEC SCHOLARSHIPS

Twenty-four students have received scholarships from Saint Lucia Electricity Services Limited (LUCELEC) for the upcoming academic year. The scholarship packages were presented to the students on Saturday, August 13, 2011 at the power company’s 6th Annual Scholarship Social held at the Cul-de-Sac Power Station.

Four of the recipients are new entrants into the Company’s scholarship programme having performed well at this year’s Common Entrance Examinations. The others are continuing in the programme at various stages of secondary school and the Sir Arthur Lewis Community College. 

The new entrants were welcomed to the programme by LUCELEC’s Human Resources Manager, Nicole DuBoulay, who encouraged students to continue on their path of academic excellence. “The programme extends a gesture of thanks to the employees of the Company and supports the development of our young people in Saint Lucia,” stated Mrs. Du Boulay.

LUCELEC’s Managing Director Mr. Trevor Louisy made the presentations to the recipients among whom was Aazah Daniel who will be attending the Saint Mary’s College. He expressed his gratitude for the scholarship and believes that the financial support will be of great benefit to him and his family.  “All I have to do now is concentrate on doing my work,” noted Aazah.

Forensic Pathologist and co-founder of Rise Saint Lucia, Dr. Stephen King was the motivational speaker at the event.  In a passionate address to the gathering, he encouraged students to maintain a spirit of excellence and to make full use of the opportunities afforded to them.

The LUCELEC Scholarship Programme is an initiative made available to students of LUCELEC employees and provides financial as well as mentoring support for the scholars from secondary school through to Sir Arthur Lewis Community College.

The Company also used the opportunity to provide the recipient of its Bernard Theobalds Scholarship, Miss Abigail Pascal, with funding for her final year of studies at the University of the West Indies. The Bernard Theobalds Scholarship is intended to encourage students to pursue an education at the University of the West Indies for a career in the field of Engineering. The scholarship is open to all Saint Lucians and is awarded once every 3 years.

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LUCELEC GIVES NCF TELETHON $30,000 JUMP START

St. Lucia Electricity Services Limited (LUCELEC) jump-started the National Community Foundation’s 2011 Telethon with a thirty thousand dollar contribution on Thursday, May 5.

LUCELEC made the donation during the launch of this year’s edition of the National Community Foundation (NCF) annual telethon to raise funds in support of its various programmes.

In making the presentation LUCELEC’s Corporate Communications Manager Roger Joseph said the company makes an annual contribution to the NCF to assist with responding to requests for medical assistance. In that regard, such requests received by LUCELEC are forwarded to the NCF for attention.

Mr. Joseph also praised the NCF for the outstanding work it is doing in pursuit of its mandate and for the excellent record of transparency and accountability in the use of the funds that it raises and disburses.

According to Joseph, the NCF’s theme “Caring by Sharing” is consistent with LUCELEC’s “Power of Caring” through which the company donates to educational, sporting, charitable, religious, medical, and other non-profit institutions and agencies whose mandate it is to improve the lives of vulnerable groups in the society.

The launch of the telethon was held at the NIC Conference Centre. This year’s telethon is scheduled for May 29 at the Gaiety on Rodney Bay and will include an international food fair.

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LUCELEC DONATES NEW COPIER TO BOGUIS PRIMARY SCHOOL

15.02.2011

The Boguis Primary School has been gifted a new photocopier. The donation was made by the Saint Lucia Electricity Services Ltd. (LUCELEC) on Tuesday, February 15.

Accepting the photocopier was Principal Ms. Murina Julian who expressed thanks to LUCELEC for its donation, noting that the school had been without a proper photocopier for the past 10 years. She explained that the copier would greatly assist in areas such as providing test papers and copying learning material for students. In the past, she said, teachers at the school have lost productivity due to the inability to have these simple tasks accomplished.

LUCELEC’S Corporate Communications Manager, Roger Joseph, who made the presentation on behalf of the Company said LUCELEC is committed to partnering with the community to help ensure schools are adequately resourced. “We don’t just see this as providing a photocopier, but as an opportunity to improve the learning environment and the lives of teachers and students of the Boguis Primary School,” he stated. “This resource will, therefore, assist in enhancing both efficiency and productivity, allowing teachers to give greater attention to teaching.”

Also present at the ceremony was the District Education Officer, Mr. Everiste John. Mr. John noted that one of the challenges for rural schools such as Boguis is sourcing funds for equipment. “When you find a corporate entity such as LUCELEC coming on board, it’s very gratifying”. His hope is that this token will assist Boguis in increasing the percentage of common entrance passes.


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LUCELEC STAFF APPRECIATION NIGHT THIS WEEKEND
Over 100 Awards to be Distributed

04.02.2011

The Saint Lucia Electricity Services Limited (LUCELEC) will host its annual Staff Appreciation Night on Saturday, February 5, at the Gaiety on Rodney Bay. The wards night is being held under the theme ‘Epi konpasyon nou kaye ni siksé (With compassion we will succeed).

Over one hundred (100) awards will be handed out including awards for Employee of the Year, Contractor of the Year, Supervisor of the Year, Manager of the Year and Department of the Year. Employees will also be recognized for perfect attendance and long service.

According to LUCELEC’s Human Resources Manager Nicole DuBoulay, the Staff Appreciation Night is one of the ways that the Company recognizes and supports the contributions of employees.

“LUCELEC acknowledges that each employee makes a difference, and their respective contributions are critical to fulfilling LUCELEC’s mission. The Company is pleased to take another opportunity to celebrate the employees whose dedication, commitment, effort and achievement continue to rise above expectations,” she added.

LUCELEC will also recognise and honour its employees who attained the age of retirement during 2010 for their many years of dedicated service to the Company.

Keithson Charles who won the Employee of the Year award at last year’s event says, “It is truly an honour to be selected as an award recipient from a pool of talented, dedicated and committed team members. Together we have created a dynamic, high energy workplace in an atmosphere of competence, trust and respect, and as such, we will share the honour of all the awards presented and will enjoy the evening of recognition and entertainment.”


Other winners at last year’s Staff Appreciation Night included Contractor of the Year Nick Frank, Supervisor of the Year Martin Isaac, Manager of the Year Gilroy Pultie and the Department of the Year award was captured by the System Control Department.

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LIGHTNING ARRESTOR FAILURE TRIGGERS SYSTEM SHUTDOWN
22.01.2011

The island experienced a total electrical system shutdown at 3:25 a.m. on Saturday, January 22. Just over an hour later, at 4:36 a.m., power was restored to some communities and by 5:22 a.m. the power had been restored to the entire island.

The power outage was caused by the failure of a lightning arrestor on one of the main power transformers at the Cul de Sac Power Station. The arrestor shattered and the protection systems on the network kicked in to isolate the transformer and subsequently shut down the engines, resulting in a total system shutdown.

After the isolated transformer and other equipment in the immediate vicinity had been inspected to ensure there was no other damage, the process of restoring the system was initiated. Less than two hours after the shutdown, power had been restored to all customers.

A more detailed investigation commenced at dawn and work is in progress to ascertain the full extent of the damages to the isolated transformer. The protection systems are also being checked to ensure that they are functioning correctly.

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POWER RESTORATION POST TOMAS COMPLETE
16.11.2010

The restoration of power post Hurricane Tomas is complete. The remaining areas of Soufriere were energised on the weekend (Bouton on Sunday, November 14 and the Ladera and Jalousie resorts on Saturday, November 13) to complete the restoration effort. Work on these remaining areas had been delayed while access ways were cleared of debris resulting from land slippage.

LUCELEC’s Transmission & Distribution Manager Gilroy Pultie says only a small part of Fond St. Jacques remains isolated from the power grid for safety reasons as an evacuation order remains in force for the area. Now that the Quarte Chemin road is cleared and power restoration work is complete, Mr. Pultie adds, LUCELEC’s attention is now focussed on rebuilding the section of the west coast 66kV transmission line that was damaged during the hurricane.

“The west coast 66kV transmission line is a critical component of our overall power infrastructure. It provides flexibility in how power is transmitted around the southern half of the island and in the reliability of the supply. While it remains out of service all areas from Thomazo on the east coast down to Vieux Fort in the south and back up to Bouton on the west coast are being powered off the east coast 66kV line,” Mr. Pultie explained.

“Should there be a fault on the east coast 66kV line,” he cautioned, “power to the entire south of the island can be interrupted as happened for a few hours on Sunday.”

Mr. Pultie expects that the reinstatement of that section of the 66kV line will be completed by early next week.

Other infrastructural work to be done on the system includes rebuilding of the 11kV line on the Barre d’Isle which connects Ravine Poisson to Thomazo. That will be tackled once the Ministry of Works completes stabilisation work on the Barre d’Isle. In the interim plans are being considered for reinstating the street lighting on the entire Barre D’Isle.

LUCELEC has also begun to tidy up the system, which involves raising low hanging lines, straightening poles, and repairing street lights that were damaged or destroyed in the hurricane.

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UNION STATION ENERGISED WELL AHEAD OF SCHEDULE
08.11.2010

LUCELEC’s Union Substation is back online. One week after being flooded under 4-feet of water a section of the substation was commissioned and energised on Sunday, November 7, well ahead of schedule. So far, one of the two transformers that step down the electricity from 66kV to 11kV and the entire 11kV busbar have been restored. The 11kV system was reconfigured today allowing some of the feeders to be supplied from Union substation.

The Union Substation supplies power to many communities in the north of the island. While it was offline, its usual load was being taken up by substations at Cul De Sac, Castries, and Reduit. Now that part of it is back on line, the load on the other substations in the north has been reduced and some flexibility in the system has been restored. The initial estimates were that the Union Substation may have been out for nearly three weeks.

LUCELEC crews were also able to gain access to part of the 66kV transmission line that runs down the west coast that was damaged during the hurricane. The damage to the west coast 66kV transmission line occurred as a result of landslides between Canaries and Soufriere. An attempt to access the other damaged section of that line was in progress today to ascertain the full extent of the damage and determine an appropriate action plan for its restoration.

The line is another critical component of the island’s electricity infrastructure. It provides flexibility in how power is transmitted around the island and in the reliability of the supply, particularly to the areas from Bouton on the west coast to Praslin on the east coast. While it remains out of service all areas from Thomazo to Soufriere are being powered off the east coast 66kV line.

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POWER TO SOUFRIERE RESTORED - 04.11.2010
Soufriere now has power!

The system there was energised last night at approximately 10:45 when power was restored to the Fond St. Jacques and Fond Cacao feeders. The town centre was powered up a short time later at three minutes after midnight. The LUCELEC crew, which had been landed in Soufriere via barge on Tuesday evening, worked all through Wednesday to restore the 66kV supply and the Soufriere Substation.

LUCELEC Crews Work Through the
Night to Restore Power

Given the particular plight of the people of Soufriere LUCELEC felt it was important to try to assist in bringing some sense of normalcy to the area by restoring the power there as soon as possible.

Areas such as Anse Chastanet, Fond Bernier, Palmiste and Crestlands have been energised. The crew in Soufriere will be working to restore Baron’s Drive, New Development and Fond Cacao today. Areas from Ladera to Etangs are still without power as there is some work still to be done there.

The section of the system just beyond Crestlands into Fond St. Jacques has been isolated for safety reasons, given the number of downed lines and poles in the area, although power is available to feed the area.

 

Replacing pole in Ravine Poisson Other successes for LUCELEC on Wednesday included power being restored to Canaries and the section of the network between Marc Junction and Ravine Poisson, including Sarrot.

Progress was made also in getting power back to Ti Rocher, Trois Piton, Forestierre, Desbarra in the north.

 

And in the south, the feeders powering Saltibus, Roblot, La Maze and Montete in Choiseul were energised, as was the feeder to areas such as Banse, Macdomel and environs in Laborie. Electricity has been restored to nearly 90% of the island as LUCELEC continues deal with the aftermath of Hurricane Tomas. As at this morning (November 4) only parts of Soufriere, parts of Choiseul, and a few small pockets in the north and south of the island, have not been energised.

Those areas in the northern half of the island where power has not been restored include Millet, Venus, Tete Chimen (including the Roseau Dam), the Barre d’Isle and some parts of Guesneau, Piton Flore and Bagatelle, primarily due to difficulty in accessing those areas.

The areas in Choiseul which have not been energised include sections of the areas between Caffiere and Dugard (including Debrieul), from Morne Sion to Union Vale (including Delcer, Bois Dinde, La Pointe).

On Wednesday, a two-man crew from LUCELEC’s Mechanical and Electrical departments flew into the Roseau Dam with WASCO to assist in evaluating the situation there as LUCELEC continues to do all it can to restore power to the dam, which remains inaccessible via road.

 

Various Challenges Other successes for LUCELEC on Wednesday included power being restored to Canaries and the section of the network between Marc Junction and Ravine Poisson, including Sarrot.

Progress was made also in getting power back to Ti Rocher, Trois Piton, Forestierre, Desbarra in the north.

 

There is still extensive work to be done in replanting and replacing poles and low voltage lines that were damaged during the hurricane in various areas. Some of this work will continue into next week. Several line crews are still working in the areas that have been energised to deal with some small pockets and individuals that are still without power due to smaller, localised faults and (service lines down, damaged transformers, meters pulled off, “my neighbour has power but I don’t”, type of faults).

Work on restoring the Union Substation which was flooded is continuing and it is expected that the Union Substation will be unavailable for approximately three weeks. With Union Substation off line, the damage to the 66kV transmission lines on the west coast, and the damage to other pole and line infrastructure, LUCELEC has lost some flexibility in the network. Therefore, in some areas LUCELEC is no longer able to supply power from multiple substations or feeders and some parts of the network are carrying more load than usual.

The company wishes to advise that due to the lack of flexibility in some areas, it may need to interrupt the power supply to some areas where power has been restored to complete some of the repairs.

LUCELEC advises that customers continuing to experience faults should call 457-4900 to report such faults.

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LUCELEC CONTINUES ITS SUPPORT FOR JUNIOR ACHIEVEMENT
Choiseul Secondary Has the Power Company’s Backing
LUCELEC’s Quentin Emmanuel (right) presents cheque to Junior Achievement Programme Coordinator Agnella Joseph (second from left) in the presence of Business Advisor Senator Everistus Jn. Marie (second from right), Teacher Advisors and students from the Choiseul Secondary School.
LUCELEC’s Quentin Emmanuel (right) presents cheque to Junior Achievement Programme Coordinator Agnella Joseph (second from left) in the presence of Business Advisor Senator Everistus Jn. Marie (second from right), Teacher Advisors and students from the Choiseul Secondary School.

As the Choiseul Secondary School kicks off its Junior Achievement programme for this academic year, it is doing so with backing of the St. Lucia Electricity Services Limited (LUCELEC).

The power company has been a long-time Gold Sponsor of Junior Achievement over the years, and has supported the programme at the Choiseul Secondary for most of that time.

Apart from its five thousand dollar ($5,000) contribution to Junior Achievement, LUCELEC provides direct support to the Choiseul Secondary including staff assigned to mentor the students in the Junior Achievement programme. In fact, Quentin Emmanuel, a supervisor from LUCELEC’s Transmission & Distribution Department in Vieux Fort, has been recognised by the Junior Achievement programme as one of the most active and passionate mentors in the entire programme.

Over the past two years LUCELEC has also arranged for businessman Senator Everistus Jn. Marie to serve as Business Advisor to the Choiseul Secondary’s Junior Achievement programme. Senator Jn. Marie, who volunteers his time to support the programme, says he is pleased to be able to provide the benefit of his experience in business to the potential crop of entrepreneurs that the Junior Achievement programme seeks to develop.

LUCELEC notes that its support for the Junior Achievement programme stems from a firm belief that young people should be trained and encouraged to develop their own businesses which, in time, can create additional employment opportunities within the economy.

LUCELEC took the opportunity of the launching of this academic year’s Junior Achievement Programme earlier this week to present its Gold Sponsor cheque to programme in the presence of the students and teacher advisors of the Choiseul Secondary School.

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NEW FLOORS FOR MONCHY COMBINED

LUCELEC Helps Improve School Facilities.
Four classrooms at the Monchy Combined School have newly tiled floors courtesy of LUCELEC. The classrooms were unveiled recently at a brief ceremony at which the school expressed its appreciation to the local power company for its support.

The project was conceptualised earlier this year by a teacher at the school, Cynthia Hall, as part of the requirement for the completion of her Bachelor’s Degree in Educational Administration with the University of the West Indies (UWI). The initial project proposal was for the tiling of one classroom to reduce the amount of dust generated by the original bare concrete floor which had started to break up. The tiling allows for easier cleaning of the floors and significantly enhanced the learning environment for the students.

In a visit to the school to evaluate the proposal LUCELEC realised that there were four classrooms in need of new floors and decided to extend the project. The tiling was undertaken by a parent who was willing to help.

Principal of the Monchy Combined School, Jane Jacob-Jean, lauded LUCELEC for what she called “its demonstration of its Power of Caring”. Rayanne Baptiste, a Grade 5 student who presented LUCELEC with a token of appreciation on behalf of the school, said the tiled floors have created a “better and safer learning environment”. She thanked the Company for “making a difference in our lives and the lives of hundreds of students to come.”

In receiving the token of appreciation LUCELEC’s Corporate Communications Manager Roger Joseph said his Company understood the importance of an environment that is conducive to learning and achieving excellence.

He noted that LUCELEC had contributed to improving the facilities at nearly 30 schools across the island in the past two years through funding for various projects initiated by teachers. These projects, he added, ranged from improving floors, bathrooms and other infrastructure to developing school libraries and computer labs.

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CUSTOMER APPRECIATION WEEK AT LUCELEC

The St. Lucia Electricity Services Limited (LUCELEC) will observe Customer Appreciation Week from October 18 – 22, under the theme “The Power of Caring”. Customer Services Manager Jennifa Flood-George says the week is really about thanking customers for their business, patience, cooperation and understanding over the years. “For the past few years, we’ve usually shown our appreciation to customers on one day during Creole Heritage Month. This year, we’re expanding the programme to an entire week and we’ll be doing a lot more for our customers,” explained Mrs. George.

The week will begin with a brief opening at LUCELEC’s administrative offices at Sans Souci on Monday morning. During the week customers at all LUCELEC’s offices will have opportunities to win various prizes and benefit from special promotions being undertaken in collaboration with LIME, Digicel and Bank of St. Lucia.

“We’ll be doing a zero-balance promotion whereby customers who pay their electricity bill in full will have the opportunity to win credit towards their electricity account. Among other things, we will be working with the St. Lucia Diabetic and Hypertensive Association to provide free health screening for customers at our various locations. And we have some really nice surprises in store for customers,” Mrs. George elaborated.

The activities for the week will allow customers at all the company’s customer service offices – Sans Souci, Providence Centre in Rodney Bay, Soufriere and Vieux Fort – to participate.

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LUCELEC'S FUEL PRICE HEDGING PROGRAMME

For over forty years LUCELEC has been committed to providing excellent service to all its customers and to maintaining the most cost effective tariff possible. In keeping with this we have started a programme which will provide more stability in our fuel costs. This will, in turn, minimise large fluctuations in what is commonly called the ‘fuel surcharge’ since under the provisions of the Electricity Supply Act, fuel costs are passed directly to customers.

Customers will remember how the fuel price changes in 2008 brought great discomfort and uncertainty. LUCELEC is taking steps to avoid this through a Fuel Price Hedging programme.

Click on question for answer
What is Fuel Price Hedging?
Why is LUCELEC engaging in Fuel Price Hedging?
How does it work?
What are the benefits of Fuel Price Hedging?
What will LUCELEC gain from such an initiative?
Is LUCELEC equipped to successfully undertake this endeavour?
What are the uncertainties associated with the programme?

 


 

What is Fuel Price Hedging?
Fuel Price Hedging is a mechanism companies use to secure a set price or a price range at which they will buy fuel over a period of time, regardless of changes in daily market prices. In other words, if we agree that for the next 3 months we will pay $7.00 per gallon of diesel, no matter what happens with the market price during that time (whether the price moves to $8.00 or $6.00), we pay $7.00.

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Why is LUCELEC engaging in Fuel Price Hedging?
LUCELEC is doing this to reduce risk to the Company as well as to customers, caused by forces outside of the Company’s control. Fuel price hedging will allow LUCELEC to provide more stable fuel prices on a monthly basis and will reduce the volatility in customers’ bill.

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How does it work?
This year, LUCELEC is hedging 75% of the fuel it will purchase using a “Fixed Price Swap” by which the Company will select a fixed price that it is willing to pay for a certain period (usually 3 months). This price is different from the daily market contract that is made with a market trader who will arrange to pay to, or receive from LUCELEC the difference between that fixed price and the market price of fuel. The fixed price will be the price that is passed through to customers.

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What are the benefits of Fuel Price Hedging?
All LUCELEC’s customers stand to benefit from the fuel price hedging programme. Some of the benefits will include:

  • More stable prices for fuel
  • Fuel surcharges that do not fluctuate as significantly from month to month as before
  • If average electricity consumption does not change, customers will be better able to predict, manage and plan their electricity spending.
  • Business customers will be better able to manage their expenses, cash flow and forecasting
  • Businesses which set prices in advance (such as hotels) will benefit from a level of price stability
  • Generally there will be a greater benefit to the local economy from more stable energy prices

Price Hedging

Tariff Effects of Hedge Performance - Low Tension

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What will LUCELEC gain from such an initiative?
LUCELEC recognizes that volatile billing prices makes customers dissatisfied and weakens their confidence in the company. LUCELEC expects this mechanism to improve its customer satisfaction as well as customers' trust in and loyalty towards the Company.

LUCELEC will also benefit from improved cash management due to more stable billing prices for fuel.

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Is LUCELEC equipped to successfully undertake this endeavour?
LUCELEC undertook a pilot fuel price hedging programme from July- December of 2009. This trial period allowed for professional assistance and support in carrying out the programme and gave the Company the opportunity to become aware of the procedures, processes, risks and benefits. The pilot programme exposed the staff to the hedging strategy, the negotiation and execution of contracts, documentation to satisfy legal, accounting and audit requirements, establishment of governance controls, and reporting tools among other matters.

LUCELEC is well equipped to continue the fuel price hedging programme and has done so from December 2009.

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What are the uncertainties associated with the programme?
Although fuel price hedging will allow for a greater certainty of the price of fuel over a period of time, there may be periods in which the hedged price will be higher than the daily market price. In those instances, customers will continue to pay the hedged price even though it is higher than the current cost of fuel on the market. In order to lessen that possibility, LUCELEC’s Fuel Risk Management Committee (FRMC) will monitor the programme closely.

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Other points to note:

  • Fuel price hedging is provided for, in the Electricity Supply Act and its associated amendments.
  • Fuel prices are passed through with absolutely NO mark-up to the customer, so there is no financial benefit to LUCELEC.
  • The fuel price hedging programme is NOT geared to achieve the lowest price. To attempt this would require that the Company get into speculative activity, which is not consistent with the Company’s Risk Management policies.
  • The fuel price hedging programme has been approved by the Company’s external auditors for its compliance with International Financial Reporting Standards.
  • LUCELEC’s Board of Directors has given its approval for the programme to continue until the end of 2011 and it is expected that the programme will continue to be extended.
  • LUCELEC continually aims to be innovative and forward thinking and it is the first Company to undertake a fuel price hedging programme in the English speaking Caribbean.
  • LUCELEC will continue to provide information to its customers about the results of the programme from time to time.

 


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