Bajans to save on electricity bills Loop Barbados

Black Immigrant Daily News

After months of complaints from locals about high electricity bills, Government has sought to provide substantial relief.

On Thursday, Prime Minister Mia Amor Mottley announced a series of measures that will ease the high cost of living. Addressing the nation, the Prime Minister asserted that “electricity can no longer be viewed as something we can ignore given the increase in fuel oil prices”.

Earlier this year the Government capped the VAT on fuel, as oil prices soared up to US $125 a barrel, so it would not be passed on to Barbadians.

The Prime Minister declared that following consultations with Barbados Light & Power (BL&P), the first 250 kilowatt-hours will be charged at a rate of 7.5 per cent value-added tax (VAT) instead of the customary 17.5 per cent. This reduced rate will take effect from August 1 and run until January 31, 2023.

“The Government has determined now that every Barbadian household should have the first 250 kilowatt-hours removed from a vat rate of 17.5 per cent to a new VAT rate of 7.5 per cent. This is going to represent on average a savings of about $17 to every Barbadian household, regardless if you use 250 kilowatts-hours or not,” she announced.

“This my friends, is critical and it might not be a lot but when you see it in conjunction with the other things that we are doing then you will understand,” Prime Minister Mottley insisted.

She revealed that according to reports from the BL&P, 63 per cent of Barbadian households use 250 kilowatts or less. The reduced VAT will result in the electricity bill moving from $204.46 to $167.06.

The Barbadian Prime Minister also shared that the reduced VAT will cost the Government $1.527 million per month, equating to approximately $10.5 million over the next six months.

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