Sunday, October 30, 2011

GEBE reduces its ?excessive? October fuel clause charges

PHILIPSBURG--GEBE management announced on Sunday night that permission had been granted by the company's Supervisory Board to reduce October's excessive fuel clause charge from NAf. 44.6 cents per kilowatt/hour to NAf. 34.7 cents per kilowatt/hour.

GEBE Interim Director Paul Marshall explained that the decision was related to the fact that GEBE had had to operate using higher-than-usual amounts of LFO light fuel, which is more expensive than the usually-used HFO residual fuel.

Marshall said the Supervisory Board had agreed unanimously for GEBE to absorb the difference, due to the higher consumption of the more expensive LFO light fuel. "In order to avoid this excessive charge in fuel clause, management contacted the Supervisory Board of GEBE with the request to consider a reduction in the fuel charge," Marshall said.

He said the electronically distributed electricity bills with NAf. 44.6 had been sent out already to the consumers who receive their electricity bills by e-mail.

"For this group of consumers, we advise that they pay their bills and the difference in fuel clause will be credited to their accounts for the next month's electricity bill. The electricity bills that are normally hand-delivered to our consumers or by mail have not been sent out as yet," Marshall said.

Marshall said the power plant had consumed the more expensive fuel as a result of a fire in the electrical generator of one of the largest production units. The unit was delivered in December 2009 and is still under guarantee from supplier W�rtsila.

"Further, another large production unit of 11.6 megawatts had to be stopped for inspection in August this year. This was due to increased blow-by gases in the crankcase. After dismantling and inspection, it was observed that several parts had to be replaced and were ordered. To date, despite repeated urgent requests by GEBE, W�rtsila was not able to give GEBE a firm delivery date for these parts. These urgently needed parts to rebuild the production unit should be flown in from Europe," Marshall said.

"Because of these two major production units not being available during a prolonged period of time, the operational and maintenance personnel have to perform their normal operational and maintenance duties under abnormal high pressure, which consequently resulted in the abnormal high consumption of the more expensive LFO light fuel. This was necessary to avoid periods of long power interruptions in our service to the public."

Source: http://www.thedailyherald.com/islands/1-islands-news/21439-gebe-reduces-its-excessive-october-fuel-clause-charges.html

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