Electricity rates in Antigua and Barbuda will remain unchanged for now, despite rising global oil prices, as the Antigua Public Utilities Authority (APUA) absorbs fuel-related cost increases rather than passing them on to consumers. According to Antigua News Room, Utilities Minister Melford Nicholas made the announcement in an interview with state media.
"We are holding prices stable for now," Nicholas said, acknowledging that global energy markets remain volatile. "APUA is going to hold the line for a while longer."
He cautioned, however, that a dramatic spike in oil prices could force a reassessment. "We wouldn't be able to say if the problem exacerbates and, let's say, a barrel of oil were to go to $200, what impact that may have," he said.
Nicholas drew a parallel to the COVID-19 pandemic, during which the government and APUA worked in tandem to protect consumers from external economic pressures. "We are aligned with the government in terms of keeping the inflationary impact of these external shocks away from the population for the time being," he added.
Beyond short-term relief measures, the minister pointed to renewable energy expansion as the lasting solution to high electricity costs. Plans include rehabilitating a solar plant near V.C. Bird International Airport and developing an additional facility in the Sir Vivian Richards Stadium area. Both projects are expected to strengthen energy resilience and introduce battery storage capacity into the national grid.
The government is targeting up to 50 megawatts of solar energy production over the next three to four years. "That really will take a bite out of the cost that we have for purchasing fuel," Nicholas said.
He cited Barbuda's hybrid energy system as a working model, noting it has already achieved approximately 25% savings in fuel consumption. Replicating similar efficiencies across Antigua could generate savings of roughly $60 million for APUA, Nicholas said.
Electricity production costs in Antigua remain among the highest in the Caribbean, estimated at approximately US$0.42 per unit — far above the sub-US$0.10 rates found in oil-producing nations. Nicholas noted that elevated energy costs ripple across multiple sectors, including water production and infrastructure development.
As one example, he highlighted a new health facility currently under development that will incorporate renewable energy systems to help offset its operational costs.
Nicholas expressed confidence that reducing the country's dependence on fossil fuels would deliver both economic and environmental dividends. "If we can remove our dependence on fossil fuels, we will see wider economic benefits and positive environmental impacts," he said.
