July electric bills were the first issued under the billing cycle that consisted of the TCIG Fuel Factor Relief Program, which runs from July through October 2026.
The program caps the Fuel Factor Rate at US$0.22 per kWh for eligible residential customers. When the actual Fuel Factor Rate rises above $0.22 per kWh, the Government pays the difference directly to the utility company on the customer’s behalf. Eligible residential customers must have a three-month rolling average electricity bill below US$1,500.
While the program provides meaningful relief, it does not always mean a lower bill. This is because the capped Fuel Factor Rate of $0.22 per kWh in July was still higher than the June Fuel Factor Rate for customers in Providenciales, North Caicos, Middle Caicos, Grand Turk, and Salt Cay.
In addition, many customers used more electricity during July, which also contributed to higher bills. South Caicos was the exception, where the Fuel Factor Rate decreased from $0.2925 per kWh in June to the capped rate of $0.22 per kWh in July.
The relief program has reduced the impact of record-high fuel costs driven by global fuel prices. Without the Government’s assistance, Fuel Factor Rates in July would have reached $0.3017 per kWh in Providenciales, North Caicos, and Middle Caicos, $0.2636 per kWh in Grand Turk and Salt Cay, and $0.2831 per kWh in South Caicos. Eligible customers can see the amount of Government assistance provided directly on their bill.
Rather than lowering bills below what customers have typically paid, the cap limits what they are charged for the fuel factor rate.
Fuel Factor Rates remain at record levels due to global events affecting fuel markets. In July, the Fuel Factor Rate exceeded the Electric Rate, or base rate, which is a rare occurrence in the Turks and Caicos Islands. Although the TCIG Fuel Factor Relief Program protects eligible customers from the full impact of these increases, the capped rate is still higher than the Fuel Factor Rates customers experienced earlier this year and last year.
Customers are most likely to see lower bills when Fuel Factor Rates fall below the $0.22 cap and electricity usage remains the same or decreases. Customers who are not eligible for the relief and are currently paying the full fuel factor rate would see a reduction in their electricity bill when the actual fuel factor rate falls.
Pelican Energy TCI continues to encourage customers to monitor and manage their energy consumption, particularly during the warmer summer months when electricity usage is typically higher.
Looking ahead, Pelican Energy TCI’s strategy is to reduce dependence on fuel by increasing renewable energy, particularly solar generation. The more electricity that can be produced from renewable sources, the less exposed customers will be to the volatility of global fuel markets, and the cost of energy will decrease over time.
Pelican Energy TCI, President and CEO, Devon Cox said that progress is being made with sustainable energy solutions.
Pelican Energy TCI remains committed to supporting customers in understanding their bills and administering the Fuel Factor Relief Program on behalf of the TCI Government.
