MUL Spending Over One Million Dollars on Fuel

Montserrat Utilities Limited MUL is spending in excess of one million dollars on fuel.

This has been revealed in Cabinet briefing notes, published on Friday.

Cabinet received a presentation by Permanent Secretary in the Ministry of Communications, Works, Energy and Labour, the Managing Director and Financial Comptroller at MUL detailing the serious financial challenges facing the company.

During the meeting Cabinet was informed that MUL has been thrust into severe financial distress.

Based on the company’s assessment, three factors have contributed to its current financial situation: increased Maintenance Costs among them.

However, one of the biggest factors is the escalating cost of fuel which moved from $640,000 in January 2022 to 1.2million in June 2022.

The power and water company also reported increased delinquency among customers in the payment of bills.

This has resulted in MUL having to subsidize the fuel surcharge over the last few months.

Meantime, Cabinet requested a proposal from MUL for the company’s long term business model.