Light Fuel Oil (LFO or diesel) and Heavy Fuel Oil (HFO) are used to generate electricity in Sint Maarten. The cost of fuel oil greatly outweighs the cost of other things necessary to provide our customers with electricity.
Why a Fuel Adjustment Charge?
Fuel prices rise and fall unpredictably according to world market conditions. Some of this cost is recovered in the base rate, while customers pay the remainder as a Fuel Adjustment Charge. The Fuel Adjustment Charge allows both increases and decreases in fuel costs to be passed on to customers automatically. The Fuel Adjustment Charge is not a new invention, neither is it unique to Sint Maarten. It is used by electric utilities all over the world.
What the Fuel Adjustment Charge Does
The Fuel Adjustment Charge protects electricity consumers during periods of rapid changes in fuel costs by promptly adjusting the price of electricity without delay.
How the Fuel-Clause is Calculated
The fuel clause is calculated by dividing total amount of fuel used by the net sales for that particular month.