Electricity prices in Antigua and Barbuda will remain stable for now despite rising global oil prices, Utilities Minister Melford Nicholas said, noting that the Antigua Public Utilities Authority (APUA) is absorbing fuel-related increases in the short term.
“We are holding prices stable for now,” Nicholas said in an interview with state media, adding that while global energy markets remain volatile, APUA has opted not to pass on those costs to consumers.
He warned, however, that the situation could change if oil prices rise significantly. “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,” Nicholas said. “But as it stands now, APUA is going to hold the line for a while longer.”
Nicholas said the approach mirrors measures taken during the COVID-19 pandemic, when the government and the utilities provider worked together to shield consumers from external economic shocks.
“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.
Looking beyond short-term relief, Nicholas pointed to renewable energy expansion as the long-term 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. The projects are expected to strengthen energy resilience and introduce battery storage into the grid.
The government is also 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 model, noting it has already achieved about 25% savings in fuel consumption. Replicating similar efficiencies in Antigua could yield savings of roughly $60 million for APUA, he said.
Electricity production costs in Antigua remain among the highest in the region, estimated at about US$0.42 per unit — significantly higher than in oil-producing countries, where costs can fall below US$0.10. Nicholas said high energy costs continue to affect multiple sectors, including water production and infrastructure development.
He pointed to a new health facility under development that will incorporate renewable energy systems to offset operational expenses.
Nicholas expressed confidence that reducing reliance on fossil fuels will not only stabilize electricity costs but also improve economic competitiveness and deliver environmental benefits.
“If we can remove our dependence on fossil fuels, we will see wider economic benefits and positive environmental impacts,” he said.