PUC announces cuts in electricity tariffs |06 July 2013

The announcement was made by the corporation’s chief executive, Philippe Morin, at a press conference at the Electricity House, Roche Caiman, yesterday afternoon.

As per the new rates, electricity tariffs will go down by 25 cents per unit for all consumers and in all sectors, be it domestic, industrial or commercial.

With the price reduction, a household which was for example consuming on average 300 units of electricity per month which amounted to R511.28, the electricity budget will now drop to R436.

For 200 units’ consumption, the price will now be R290.60, compared to R340.80 before the end of last month.
The tariff review represents a reduction of almost 15 percent in domestic energy charge.

Mr Morin has explained that the reduction reflects a decrease in fuel costs during the last three months, and that the PUC will undergo an electricity tariff review every three months.

Consequently, electricity prices will drop or rise quarterly depending on the prevailing cost of fuel.
“The next review will be done in October. Whenever there is a decrease in fuel costs, it is normal that we pass on the cut to the consumer,” Mr Morin said.

Mr Morin also explained that the readings on the consumers’ July electricity bills will not reflect the reduction as the meter-reading machines have not yet been adapted to the price change.

However, the adjustment and the new tariffs will be applied upon payment.
As from the month of August, the new rates will appear directly on the monthly bill.

Also present at the press conference was Tony Imaduwa, the acting chief executive officer of the Seychelles Energy Commission. Mr Imaduwa revealed that the Commission is presently carrying out a study with the help of the World Bank, to relook at the formula which determines electricity tariffs based on PUC’s investments, occupational and operational costs.

He said that the study which will go on until the end of this year will permit the PUC to install a new planning system whereby tariff calculations will be done automatically, and tariffs will reflect electricity costs in a more transparent way.
 
At the same time, PUC will be able to ensure a more efficient service at a fair price.

The PUC also seized the opportunity to inform the public that the newly commissioned wind farm is meeting its set target of energy production, with the advantages of diversifying energy portfolio, reducing production costs and gas emission.

As for water tariffs, PUC has said that there is no change in view for the time being.