NASSAU, BAHAMAS — In a move set to modernize and strengthen regulatory oversight in the electricity sector, the Utilities Regulation and Competition Authority (URCA) has released a public consultation document proposing the first-ever Regulatory Accounting Guidelines (RAGs) for public electricity suppliers. The draft guidelines mark a significant milestone in URCA’s effort to improve transparency, fairness, and financial accountability across the industry.
The initiative aims to standardize how licensees track, report, and allocate their finances, ensuring that only regulated electricity operations are considered in URCA’s economic and policy decisions. The guidelines, released under powers granted by the Electricity Act, 2024, propose mandatory account separation for all Public Electricity Suppliers (PES), with more detailed requirements for larger, Approved PES.
“For too long, inconsistencies in how utilities report their financials have made it difficult to monitor performance and protect the public interest,” the regulator stated. “The RAGs will provide clarity, comparability, and confidence for consumers, investors, and policymakers alike.”
URCA has long observed that some licensees’ financial submissions include costs unrelated to electricity operations, undermining its ability to assess performance and set fair tariffs. The new guidelines address this by requiring utilities to maintain separate, clearly identifiable financial records for regulated business units, following internationally recognized standards.
While all licensees will be subject to the new framework, URCA has indicated it will adopt a proportionate approach. Smaller suppliers will face simplified requirements, while the full accounting standards will apply primarily to larger utilities designated as Approved Public Electricity Suppliers.
The consultation document outlines a two-stage process, beginning with stakeholder input on the principles of account separation. Based on the feedback received, URCA will finalize and publish the binding regulatory measures.
Beyond strengthening oversight, URCA argues that properly separated accounts will help utilities manage operations more efficiently, allow for meaningful performance comparisons, and ensure that customer rates are based on justifiable costs. The move also aligns The Bahamas with international regulatory best practices—an important factor in building investor confidence as the country continues energy sector reform.
