St Helena : St. Helena Changes Electricity Tariffs
Submitted by Saint Helena Herald (Juanita Brock) 28.10.2007 (Article Archived on 11.11.2007)

SHG’s Charging Policy and the Draft Sustainable Development Plan, which formed the basis of discussions with the Development Aid Planning Mission in February/March this year, commits the St Helena Government to moving towards fuller cost recovery of services.

PRESS RELEASE

Changes to Electricity Tariffs

SHG’s Charging Policy and the Draft Sustainable Development Plan, which formed the basis of discussions with the Development Aid Planning Mission in February/March this year, commits the St Helena Government to moving towards fuller cost recovery of services. This effectively means that St Helena must move towards recovering the money it spends on providing services, such as electricity, to the Island, as one of the building blocks of economic development and the move towards financial independence.

As a result, electricity tariffs will change from 1 December.  Most consumers will pay less than they do currently. Under the new tariff structure, consumers will pay only 2p per unit for the first 300 units consumed instead of the current rate of 16.5p per unit.  Thereafter they will pay 15p per unit for the next 700 units and after consuming a total of 1000 units will be required to pay 17p per unit for each additional unit consumed.

The Governor in Council was pleased to note that some charges to the consumer would be coming down.  The Council however accepted that the current standing charge of £1.00 per quarter does not reflect the cost of supply and maintaining electrical connections to the grid. Consequently, the standing charge for each metre will increase to £40.00 per quarter for single phase electricity supply and £60.00 per quarter for 3-phase supply.  Generally, single phase supply is used by the domestic consumer whilst large businesses use the 3-phase supply.

Ann Muir, Social Development Planner said “Despite the increase in the standing charge, our calculations indicate that most households will realise savings.  This is due to the lower rates that will apply for households consuming less than 1000 units.”

 Throughout its detailed considerations the Governor in Council has had in mind the question of how to prevent the changes having any adverse effect on the more vulnerable in society. The Social Development Planner has conducted a full social impact assessment to determine how the new charges will affect households. Everyone using less than 300 units per quarter will be eligible for a discount of 50% of the standing charge which will mean paying only £20.00 instead of £40.00.  Whilst there will be a relatively small number of households consuming less than 100 units that will face higher bills, the Employment and Social Security Department will continue to support those where there is genuine hardship.   In addition, organisations that do not exist to make a profit, for example religious denominations, which consume less than 100 units per quarter can also apply for assistance from SHG.  Such applications should be made to the Financial Secretary on the basis of demonstrating hardship which adversely affects the organisation’s contribution to the people of the Island and which could not be relieved through raising income in other ways. 

 Governor in Council was also concerned to avoid large increases that businesses might then transfer to their customers.  However, it was judged that the new charges will not have any great impact on businesses.  To give an example, a large shop which consumes 40,000 units from one meter in a quarter currently pays £6,601.00, but under the new tariff structure will pay £6,781.15, representing an increase of only £180.15 per quarter.  A medium shop, which consumes 10,000 units from one meter in a quarter currently pays £1,651.00 but will pay £1,681.15 with the new charges – an increase of just £30.15 per quarter.  Some smaller businesses will pay less.

Changes have also been made to re-connection charges.  Re-connection charges currently stand at £10.00 regardless of the length of time a consumer is disconnected.  The new re-connection charges will be as follows:

(a) up to one month (for persons living on Island)                                    £5.00

(b) up to six months (for persons living on Island)                                   £10.00

(c)  up to one month (for persons living off Island)                                  £20.00

(d) up to six months (for persons living off Island)                                   £50.00

(e) six to twelve months (for persons living on or off Island)        £100.00

(f) over twelve months (for persons living on or off Island)      £100.00 plus £100 for every year or part of the year that the electricity supply has been disconnected.

Queries relating to the new tariff structure should be directed to the Billing Section in PWSD on telephone 2341 or by e-mail billing@sainthelena.gov.sh

The New Rates:

Below are some examples to show how the new tariff banding will affect your electricity charges from 1 December 2007