FortisTCI in its monthly report, recently reported that fuel factor rates across some service territories have declined by 10.42% in July.

They say this is as market fuel prices continue to fall, which is a continuation of the downward or generally stable trend across the islands that has been consistent since February.

The utility company is reminding residents that factors that influence their electricity costs include the amount of energy they consume every month and the price of fuel.

The fuel factor rate on July’s electricity bill for Providenciales, North Caicos, and Middle Caicos customers has decreased by 10.42% from the prior month’s $0.1986 to $0.1779 per kilowatt hour (kWh), Fortis said.

While Grand Turk and Salt Cay customers’ fuel factor rates also reflect a significant decline, with a 9.4% reduction from the prior month’s $0.2019 to $ 0.1829 per kWh.

This month’s fuel factor rate for South Caicos is said to be available soon.

“It is worth noting that South Caicos fuel factor rate for last month (June) decreased by 8% from the prior month’s $0.2109 to $0.1941 per kWh,” the utility shared.

What is the fuel factor?

The fuel factor rate (or power cost adjustment) is a mechanism used to recover the cost of fuel used to produce the electricity consumed by each customer.

It is calculated monthly and is based on the fuel consumed for the specific period and determined by the actual price of fuel at the time it is purchased, from FortisTCI’s supplier, Sun Oil Limited.

The fuel factor fluctuates with world market prices and allows for both reductions and increases to the consumer.