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Figure 28 describes the historical electricity generation in St. Vincent and the Grenadines. During the last 30 years, the growth of electricity generation has been continuous and strong despite the increase of oil prices in the same period. Figure 28. Electricity generation on St. Vincent and the Grenadines ! 3.7.4 Electricity Prices Electricity consumers face costs based on a two-tiered unit tariff and a per-unit fuel surcharge. Residential customers are charged a tariff (fixed since 1989) of U.S. $0.157 per kilowatt-hour for the first 50 kWh per month, and U.S. $0.185 per kilowatt-hour per month thereafter (VINLEC 2006). Although the fuel surcharge began to increase dramatically in 2004 and peaked in 2008 (Government of St. Vincent and the Grenadines 2010, p. 12), it has since remained high—the fuel surcharge in November 2008 was U.S. $0.166 per kilowatt-hour (VINLEC 2008), but in May 2010 it still was U.S. $0.140 per kilowatt-hour (Vincyview.com 2010). For a residential consumption falling within the lower tier costs at the end of 2008, this represents a minimum electricity cost of U.S. $0.3236 per kilowatt-hour. Note that this is not the mean price for the entire SVG economy; VINLEC consistently has recorded a profit during the 2000s, despite the oil-price spike (VINLEC 2008, p. 45). 3.7.5 Electricity Demand St. Vincent and the Grenadines have 99% electrification (Loy 2007 p. 135). Among the SVG economy, the commercial sector has contributed the most to growth in demand since 2003 (Government of St. Vincent and the Grenadines 2010, p. 17). In 2008, commercial uses totaled approximately 47% of all electricity, and residential use was 45% (Posorski & Werner 2009, p. 8). Electrical demand for the nation is expected to grow robustly by 6.9% annually, meaning that SVG must add new capacity by 2017 (Nexant 2010, pp. 6.12, 13.3). 89PDF Image | Energy Policy and Analysis Caribbean
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