Castries, July 14, 2026 – St. Lucia Electricity Services Limited (LUCELEC) continues to monitor developments in global energy markets. This comes as international oil prices remain volatile due to the ongoing conflict in the Middle East.

Geopolitical developments, supply constraints, and shifts in global demand remain key drivers of fuel price volatility. LUCELEC will continue to closely monitor market developments and actively manage fuel price risks in the best interests of customers.

LUCELEC reminds customers that current changes in electricity bills are being driven by global fuel market conditions, not increases in base electricity rates and that the fuel surcharge, as determined by market conditions, remains a regulated, transparent, and non-profit mechanism that reflects the cost of fuel used to generate electricity.

Additionally, the fuel surcharge applied to electricity consumed reflects the cost of fuel purchased in the previous month. This means that increases (or decreases) in global fuel prices are not immediately reflected in customer bills but are typically seen in the following billing cycle.

LUCELEC Managing Director Gilroy Pultie says in response to current market conditions, the Company has implemented a new hedging strategy as part of its fuel risk management strategy. Its aim is to provide greater cost stability and reduce exposure to short-term price spikes.

“Historically, LUCELEC's hedging strategy predominantly involved locking in a fixed price for a portion of its expected fuel purchases. And while this provided protection against rising prices, it prevented customers from benefiting if fuel prices fell during the hedge period. Under the Company’s hedging policy, up to 75% of forecast fuel volumes can be hedged for as much as one year in advance. More recently, we have adopted an approach that is more akin to purchasing insurance. Instead of fixing the fuel price, we establish a maximum price, or "cap", for the hedged volumes. This protects customers from significant price increases because LUCELEC will not pay more than the capped price for the hedged fuel. At the same time, if fuel prices fall below the cap, customers benefit from those lower market prices,” he says.

This approach provides protection against sharp increases in fuel prices while allowing customers to share in the benefits when prices decline.

Meanwhile, LUCELEC continues to invest in other initiatives designed to reduce Saint Lucia’s exposure to global fuel price fluctuations over time. These include:

Expansion of its renewable energy capacity, including a planned 10 MW utility-scale solar project.
Continued participation in national geothermal development efforts.
Investments in enhancing operations efficiency, reliability, and modernizing the grid infrastructure to manage customer grid tied solar systems across the island.

As of May 31, 435 grid tied solar systems were connected to the company’s distribution network contributing 3.606 MW of capacity, representing  a 26.5% increase over the same period last year. A total of 47 PV systems with a capacity of 327.7 kW have been interconnected to the distribution network for 2026.

The company remains on track to produce 50% of its energy needs through renewable energy by 2035.

While current conditions may result in higher electricity bills than in the last few years, LUCELEC emphasizes that these are cost adjustments linked to global fuel markets, not permanent tariff changes. Customers are encouraged to continue to take practical steps to manage electricity usage and reduce energy costs, including monitoring energy consumption through the LUCELEC MyAccount service;  reduce use of high‑consumption appliances such as air‑conditioning units; and switching off appliances when not in use. Customers having trouble paying their bills are encouraged to contact LUCELEC to discuss available support options.

The Company remains steadfast in its commitment to keeping customers informed as global conditions evolve and to the continued delivery of a safe, reliable electricity supply during this period of uncertainty. The Company continues to pursue a disciplined and balanced approach to managing current challenges while advancing Saint Lucia’s long-term energy transition.

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