Former Prime Minister Ralph Gonsalves sounded the alarm on the nation’s energy and utility sectors, sharply criticising the current New Democratic Party (NDP) administration’s handling of rising fuel prices and pushing back against International Monetary Fund (IMF) recommendations regarding state utility privatisation and renewable energy.
Gonsalves warned citizens to brace for unprecedented electricity bills, predicting that the fuel surcharge could reach a historic high of 80 cents per kilowatt-hour by June. He noted the surcharge had already jumped by approximately 12 cents to reach 67 cents in the last billing cycle, and projected it would climb into the “early 70s” in May.
While acknowledging that the base costs are driven by global factors like the war in Iran and the closure of the Strait of Hormuz, Gonsalves accused the NDP of committing a “fraud” against the public by failing to honor campaign promises to cap electricity costs.
Furthermore, Gonsalves highlighted a growing financial crisis regarding fuel subsidies. He estimated that the government currently owes roughly $5 to $6 million for April alone to oil companies Rubis and Sol, due to the price buildout mechanisms currently in place for controlled fuel prices. He lamented the government’s lethargy in communicating a sensible response to these rising costs, which will also soon impact LPG cooking gas.
A major focus of Gonsalves’ critique was the looming threat of utility privatization. Citing advice from a recent IMF report that recommended the sale of “marketable assets,” Gonsalves warned that essential entities like the state electricity company (VINLEC), water services, and solid waste sanitation are on the chopping block.
He cautioned that privatizing sanitation departments would directly lead to citizens paying more for basic services, while selling off VINLEC would cut the country off from accessing cheap international financing tailored for renewable energy initiatives. He stressed that wherever this model of privatization has been adopted in the region, it has ended in disaster.
Gonsalves heavily criticized the IMF’s “one size fits all” advice to simply replace diesel generators with solar energy to lower household costs and build resilience. He argued this approach is overly simplistic for a hurricane-prone environment. To illustrate the severe vulnerability of solar infrastructure, he cited the recent destruction of Union Island’s solar plant which previously provided a third of the island’s electricity after Hurricane Beryl’s Category 4 winds and flying debris decimated the panels.
Additionally, Gonsalves explained that solar energy only yields an output of one-fifth of its installed capacity, meaning it requires vast land resources and substantial backup power from either expensive battery storage or traditional generators.
Regarding other renewable sources, Gonsalves noted that expanding hydroelectric power is virtually impossible due to falling river volumes. While he confirmed the country possesses substantial geothermal heat resources exceeding 250°C, he acknowledged that a lack of rock permeability has stalled traditional geothermal extraction, meaning the country must now explore newer, untested “loop radiator” technologies to harvest the energy.
He argued that transitioning to renewable energy requires a highly complex, pragmatic mix of technologies, completely at odds with the simplistic cost-cutting measures advised by the IMF and embraced by the current administration.
