The Barbados Light & Power Company (BLPC) welcomes the news from the Government of Barbados of the continuation of the Value-Added Tax (VAT) reduction for its customers.
“In August 2022, the Government of Barbados introduced a VAT reduction on electricity bills to help customers manage energy costs at a time when high global oil prices were having a significant impact on monthly bills,” said Rodney Dottin, Manager Customer Care. “Since that time, VAT has been charged at 7.5% instead of 17.5% on the first 250 kWh for residential bills, representing a monthly savings of about $14, based on February’s FCA, for customers using a minimum of 250 kWh. The reduction was to come to an end on January 31 2023 but, with Government’s announcement, VAT relief will continue until September 30, 2023.” Bills issued to customers in the month of February through September will continue to reflect the reduced VAT on the first 250 kWh of energy.
In terms of fuel costs to customers, which have varied significantly over the past year, BLPC is pleased to see world oil prices – and the resulting Fuel Clause Adjustment – continue to decline from a high of almost 50 cents per kilowatt hour in mid-2022 to about 32.5 cents in January 2023 and remain stable February.
BLPC also wishes to take this opportunity to remind customers that, in addition to VAT savings, there are other ways to save on electricity costs including taking advantage of the utility’s 10% early payment discount available to residential customers. Customers can browse our website for helpful energy conservation ideas and information to manage their monthly bill.