NIA CHARLESTOWN, Nevis – June 16, 2026 – The Nevis Electricity Company Limited (NEVLEC) has announced it will reintroduce a fuel surcharge for residential electricity customers and adjust existing surcharge rates for commercial clients, a policy change driven by relentless upward pressure and volatility in global fuel markets that has outstripped existing cost mitigation measures.
The utility first adjusted domestic energy tariffs back in May 2024 in a deliberate effort to avoid bringing back a separate fuel surcharge for residential customers. At that time, the restructured tariff was designed to spread fuel costs into the adjusted baseline energy charge, shielding consumers from the full, abrupt impact of fluctuating fuel prices on their monthly utility bills. But persistent, sharp increases in global fuel costs have created unsustainable financial pressure on NEVLEC’s electricity generation operations.
Internal data from the utility shows its actual fuel cost per kilowatt-hour (kWh) has surged dramatically in recent months: rising from $0.53/kWh in April 2026 to $0.76/kWh in May, and climbing again to $0.79/kWh as of June 2026. This steep upward trajectory has left the current tariff structure unable to absorb the full cost of fuel required to keep the island’s electricity service reliable and operational.
In response to the market shifts, NEVLEC’s new surcharge policy will go into effect for the June 2026 billing cycle. While the full calculated surcharge based on current fuel costs stands at $0.79/kWh, the utility has approved a discounted rate of $0.69/kWh for domestic customers to soften the immediate financial impact on households. Commercial customers will be billed at the full, market-aligned calculated surcharge rate.
NEVLEC emphasized that the reintroduced surcharge is not a permanent fixed fee. Rates will adjust dynamically alongside changes in global fuel prices, and the policy is classified as a temporary measure that will be re-evaluated once fuel markets stabilize. The utility says it will continue closely monitoring global fuel cost trends and adjust surcharge rates accordingly as market conditions shift.
Acknowledging that higher utility costs create financial strain for all customer groups, NEVLEC framed the adjustment as a necessary step to protect the long-term reliability of Nevis’ electricity supply. The change allows the company to recover a portion of its increased fuel expenditures while continuing to deliver consistent power service across the island.
To help customers offset higher monthly bills, NEVLEC has released a set of practical energy conservation tips for households and businesses. The guidance includes turning off lights, fans, televisions and unused appliances when not in use; unplugging device chargers and idle electronics; limiting air conditioning use and setting thermostats to an energy-efficient 24°C (75°F); keeping doors and windows closed when running air conditioning; switching to energy-efficient LED lightbulbs; running washing machines with full loads; avoiding leaving refrigerator doors open for extended periods; and ironing clothing in single batches to reduce repeated iron heating.
NEVLEC reaffirmed its ongoing commitment to delivering consistent, reliable electricity service to all customers across Nevis as it navigates ongoing global energy market volatility.