Caribbean Energy Information System (CEIS) March 2012 increased with any increase in electricity costs.
One of the most important things to modern living is electricity. Life without electricity would be unimaginable, particularly for the more developed countries of the world. In the Caribbean and other parts of the world electricity allows for the lighting of houses, streets, buildings/offices; it provides heating/ cooling and powers most equipment used in factories, offices and homes. Electricity is vital for the survival of economies however it is the singlelargest cost to business in the Caribbean. This is largely attributable to the cost of the fuel used for the generation of electricity in Caribbean countries. Approximately 30% of Caribbean countries energy imports are consumed by the electricity sector with Diesel and Fuel Oil being the generation fuels of choice. Caribbean countries are seeking to build their economies, reduce poverty and develop their infrastructures. Efforts in this regard, in itself, increases the demand for the most vital resource required for modern living which ultimately increases the demand for the fuels used in electricity generation. Notwithstand-
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ing the negative environmental impacts, Diesel and Fuel Oil are fossil based fuels which continue to dominate usage in the Caribbean electricity sector. This comes at a high price and also concerns with demand and supply impacts the region. In most Caribbean countries, prices per kilowatt hour of electricity varies with any increase in generation fuel prices and these prices are passed directly to the consumers in what is called a fuel surcharge component on electricity bills. This increases the burden on the economy to find scare foreign exchange resources to purchase fuel. What ultimately occur is referred to as a ripple effect or domino effect on businesses and citizens of a country whereby the cost of every single good or service is
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Bearing these realities in mind, countries in the Caribbean that are highly dependent on expensive Diesel and Fuel Oil for electricity generation are seeking to diversify their energy mix with cheaper more efficient fuels. In the more developed countries of the world, electricity
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Caribbean Energy Information System Scientific Research Council Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone) 1-876-977-1840 (Fax) ceis@src-jamaica.org www.ceis-caribenergy.org
is a monthly Bulletin which highlights petroleum issues affecting or relevant to the Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.