Electricity Rates in Turks and Caicos Could Fall Within Two Years, Says Minister

Electricity consumers in the Turks and Caicos Islands could see a reduction in their power bills within the next 18 to 24 months, as government negotiations continue with Pelican Energy, the country’s sole electricity provider and successor to FORTIS.

Minister of Innovation, Technology and Energy Hon. E. Jay Saunders

That projection was shared by Hon. E. Jay Saunders, Minister of Innovation, Technology and Energy, during an interview on the That’s What’s Up Show. Saunders said he is confident that adjustments to electricity pricing mechanisms, particularly the fuel factor, can result in a lower combined rate for consumers.

The minister explained that while the base electricity rate is fixed, the fuel factor fluctuates based on global fuel prices and operational costs. This fuel factor can significantly raise or lower monthly bills, depending on diesel prices. By restructuring how that fuel factor is calculated and applied, Saunders believes consumers can benefit from meaningful reductions.

“The consumer doesn’t see the base rate and the fuel factor separately,” Saunders said. “They see the combined rate on their bill. If we can lower that combined rate, that’s real relief.”

One proposal under discussion is the standardisation of the fuel factor across all islands. While fuel transportation costs differ, particularly for smaller islands, Saunders said those areas represent a small portion of Pelican Energy’s overall customer base, making it feasible to spread those costs system-wide with minimal impact.

Renewable energy is expected to play a central role in further lowering electricity costs over the medium to long term. Saunders said the government is pursuing a phased transition away from diesel generation, targeting 25 percent renewable energy production by 2030 and 50 percent by 2040.

As renewable generation increases, reliance on diesel fuel would decrease, reducing the fuel factor accordingly. “If fuel is no longer producing 100 percent of the energy, the fuel factor goes down,” Saunders explained.

Solar energy is viewed as the most practical and cost-effective renewable option for the Turks and Caicos Islands. Saunders noted that solar technology has advanced significantly, with panels becoming cheaper, more efficient, and resilient enough to withstand severe weather, including hurricanes. Advances in battery storage technology now allow energy to be stored for extended periods, improving reliability during prolonged cloudy or stormy conditions.

Wind energy, however, poses challenges due to the proximity of airstrips across the islands, limiting safe locations for wind farms. Other renewable options, including wave energy and biomass, may be considered as part of a diversified energy strategy.

Saunders stressed that his focus is not renewable energy in isolation, but affordability.

“I’m not the minister of renewable energy, I’m the minister of lower rates,” he said. “Everything we’re doing is about reducing the cost to the consumer.”

Beyond renewables, the government is also examining engineering and infrastructure solutions to reduce fuel transportation costs, as well as regulatory tools such as license duration, which can affect how quickly utility investments are recovered through rates.

While he stopped short of announcing specific outcomes, Saunders said discussions with Pelican Energy are progressing and that he is optimistic about the direction of talks.

“People are feeling the pressure of high living costs,” he said. “My responsibility is to work toward lower electricity rates and a better deal for the people of the Turks and Caicos Islands.”