Every Antiguan electricity bill contains a fuel surcharge representing the pass-through cost of diesel burned at APCL's Crabbs Peninsula plant. Understanding the scale of this cost, and the risk it creates, is essential context for energy policy.
The Numbers
APCL burns ~28 million litres of diesel and heavy fuel oil per year — approximately XCD 120 million annually at 2025 prices. That is roughly XCD 1,400 per household, paid through electricity bills and leaving the Antiguan economy entirely. The generating equipment is significantly 30–40 years old, running at 35–40% thermal efficiency versus 55–60% for modern plants.
The Volatility Risk
Global diesel prices are driven by factors entirely outside Antigua's control: OPEC decisions, geopolitical events, macroeconomic cycles. In 2022, the Russia-Ukraine conflict spiked fuel surcharges to historic highs. Monthly bill variation attributable to fuel surcharges ran ~EC$35–50 from 2020–2025. For businesses planning budgets, this unpredictability is a real cost.
The Exit Path
A 2024 IDB technical study modeled replacing the aging diesel fleet with 30MW utility solar, 15MWh battery storage, and a modern gas peaker. Result: ~XCD 40 million/year in fuel savings, with capital investment paid back in 12–15 years. The required USD $60–80 million is well within the range multilateral development banks have deployed for comparable Caribbean energy transitions.