ST GEORGE'S, GRENADA: The island's electricity consumers might soon be faced with an increase for the service. Head of the Grenada Electricity Services Vernon Lawrence has hinted that it is becoming difficult not to pass on the price to consumers of rising oil prices. While GRENLEC charges a fuel surcharge based on the current prices of oil, its basic rate has not been increased for five years. Local consumers have had their bills fluctuate because of the fuel surcharge, but the company is quick to point out that there has not been a raise in the basic rates for years. The company, Lawrence said, has been seeking to minimize the effect of fuel price hikes on its consumers. "In 1999, fuel price was $1.95 (one EC dollar = 37 US cents) per gallon. It has gone up to over $4.25 per gallon. So we have seen over 150% increase. And therefore, the fuel rate, which is directly linked to the price of oil, has moved by over 130%. So with this latest increase, we're going to see a further increase in the fuel rate," he explained. He strongly hinted that the company may not be able to cushion these increases for longer. "In Grenada, in Jamaica, in St. Lucia, there's no reprieve for this because we are not like Trinidad which produces oil," he said, adding that regional countries have been looking at how they can source cheaper fuel," he said. The Eastern Caribbean Pipe Line Project, which is envisaged to supply natural gas to Eastern Caribbean countries including Barbados, Grenada, St. Vincent and Guadeloupe, is one of the avenues being explored. He said feasibility studies were currently being carried out and consultants were very optimistic. The electricity company is also looking at another initiative whereby it could secure fuel at a cheaper price through the "Venezuelan Accord", which has been signed between Caracas and St. George's. The GRENLEC Manager said that Caribbean companies have been encouraging people to conserve and were also looking for alternative sources of energy, which do not involve the use of oil. SOURCE: CARIBUPDATE.COM