NASSAU, BAHAMAS — Opposition leader Michael Pintard yesterday argued that the government Value Added Tax (VAT) Act amendment to increase the exemption ceiling on electricity bills from $300 to $400 was merely a “bandaid” approach.
Pintard expressed disappointment in the Davis administration’s handling of the country’s energy crisis while contributing to the debate on the amendment bill.
He argued that BPL’s fuel charge increase was not “inevitable”.
“The most vulnerable of you, your electricity bill will go up by at least 35-40 percent,” he said.
“If you are a middle-class Bahamian your bill will go up by almost 100 percent. If you are an owner of a business your bill is going to almost double under this administration. What they are now going to tell you is that increase was inevitable. Had they locked in the 10.5 cents per kwh rather than leave so much fuel subject to the variation in price on the open market you would not be in this position,” Pintard asserted. He also claimed that the amendment would only save the category of consumers affected, $10 on their monthly bills.
Pintard contended that the Davis Administration had met in place recommendations – which he claimed they refused to follow- which would have maintained the fuel charge at 10.5 cents per kwh or certainly not much higher. Pintard said that prior to the fuel hedge arrangement introduced by the Minnis administration BPL’s fuel charge was 18 cents per kwh and climbing.
Prime Minister Philip Davis and Works Minister Alfred Sears however pushed back against the suggestions that they had been provided with recommendations which they had failed to act upon.
Sears noted that what he had met on the table was a rate reduction bond (RRB) in place to borrow $500 million to aid BPL.
“What was not disclosed was that this $500 million package had no provision for renewable energy,” said Sears.
He added: “The hedge which was established is still in place today, until 2024.”
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