BRIEFS. Energy

Electricity bill may reflect falling oil prices

Electricity prices could fall toward the end of the year if the downward trend in the fuel prices continues, said the chairman of the Energy Department, Dani Kuzniecky.

The price of a barrel of crude oil closed at $65.96 yesterday, a far cry from July, when fuel skyrocketed to $147 a barrel.

Starting today, power distributors will publish proposed adjustments in electricity prices for the first half of 2009.

This information will undergo review by the National Authority for Public Services, which will discuss whether the new tariffs will be applied to the roughly 700,000 customers across the country come Jan. 1.

This month saw record price leaps nationwide for power use, hitting 25 cents for every kilowatt hour above the minimum rate, or about seven cents more than previous tariffs. Energy companies blamed the rise in the cost of C-grade fuel that is used to run thermal generation plants.

Customers felt the impact in their monthly electricity statement in spite of the government’s $12 million subsidy aimed at rewarding customers who consume less than 500 kilowatts per month.