NASSAU, BAHAMAS- Minister of Energy and Transport JoBeth Coleby-Davis says the government’s energy reform agreements are based on the financial realities facing the Bahamas Power and Light (BPL), responding to criticism from Opposition Leader Michael Pintard.
In a statement released Monday, Coleby-Davis said BPL is carrying roughly $500 million in debt while subsidising electricity in the Family Islands at a cost exceeding $50 million annually.
“On top of that, the company has been paying more than $50 million every year to subsidise power in the Family Islands,” she said. “BPL is renting 32 megawatts of generation at about $25 million a year. More than 80 percent of the generation fleet in the Family Islands will reach end of life within five years, with replacement needs above $80 million.”
The minister also rejected opposition claims regarding electricity charges in New Providence, stating that the 4.625-cent per kilowatt-hour fee is a fuel pass-through established under the updated Electricity Act and does not reduce BPL’s operating budget.
“It does not come out of the base tariff. It does not remove money for staff, maintenance or daily operations,” she said.
Coleby-Davis further defended the 5.5-cent per kilowatt-hour Transmission and Distribution charge, noting that approximately $3.5 million annually will fund a Hurricane Restoration Fund, with a similar amount allocated to paying down legacy debt. She added that BPL owns 40 percent of the Bahamas Grid Company, meaning profits would flow back to the utility and the public.
Addressing concerns about contractual obligations, the minister said the agreements include availability targets, maintenance schedules, reporting requirements and financial penalties for underperformance.
“Payments are tied to capacity and energy delivered and are monitored by BPL, the Ministry and the regulator. If a plant underperforms, the operator pays,” she said.
She also noted that the government’s policy of covering the first 200 kilowatt hours for residential customers existed prior to the reform and is not a new cost created by the agreements.
Coleby-Davis said the reform is projected to reduce Family Island subsidies by about $25 million per year through permanent modern assets, solar generation and improved fuel procurement.
She added that utility-scale solar, battery storage and modern gas technology are being deployed across the islands to reduce fuel imports, improve efficiency and strengthen grid resilience, with LNG ISO tanks already procured for the transition.
“Hybrid systems that combine solar, storage and high-efficiency gas units will cut forced outages, improve storm resilience and help keep cents per kilowatt hour steady over time,” she said.
Coleby-Davis said more than 3,260 pages of agreements and supporting documents underpin the reform, with several already tabled in Parliament, adding that the Ministry of Energy will continue to correct the public record on the issue.
