NASSAU, The Bahamas — Amid rising public concern over higher electricity bills, Bahamas Power and Light Company Ltd. (BPL) has issued a formal clarification on the causes behind recent rate hikes, while reaffirming its support for the Government’s newly announced Summer Energy Rebate Program set to take effect in the July billing cycle.
In a statement, BPL attributed the bill increases primarily to higher household consumption during the summer months and elevated fuel charges tied to diesel generation. “Electricity usage typically rises during the summer due to extended use of air conditioning and other cooling appliances,” the pwoer company noted, adding that many customers are exceeding lower consumption thresholds and moving into higher billing tiers.
BPL noted that in June, the fuel charge was set at 18.99605 cents per kilowatt-hour (kWh) for usage up to 800 kWh, and 22.19605 cents per kWh for usage beyond that. This marked an increase from May rates, which were approximately 16 and 20 cents, respectively.
“The fuel charge is a pass-through cost directly tied to the price of fuel used to generate electricity. BPL does not profit from this component,” said Donahue Ferguson, BPL’s Director of Customer Service. “We know that any unexpected increase in a monthly bill can be frustrating. Our goal is to help customers understand the factors at play and equip them with the tools and support needed to manage their electricity costs more effectively.”
In response to the surge in energy costs, the Government on Tuesday announced a Summer Energy Rebate Program, which will temporarily lower fuel charges to 17.4 cents and 21.4 cents per kWh. The Government will subsidize the difference to bring immediate relief to residential customers.
The Davis Administration said the rebate was a response to record-high temperatures, increased electricity demand, and continued reliance on expensive diesel generation, with BPL’s shift to Liquefied Natural Gas (LNG) expected by the fourth quarter of this year.
However, Opposition Leader Michael Pintard criticized the move, calling it a politically motivated measure lacking transparency and proper fiscal planning. “What Bahamians need is serious governance and honest stewardship of their national utilities,” he said in a statement. “Why is the Government pretending that Bahamians are saving money when the funds to cover the rebate are still coming from Bahamian taxpayers via the Treasury?”
Pintard also questioned the legality and cost implications of the program, demanding to know which budget line item will fund the subsidy and whether customers of other utilities, such as Grand Bahama Power, will also benefit.
“This is most diabolical,” he charged. “All Bahamian taxpayers are being asked to fund a rebate that not all will benefit from.”
Meanwhile, Dr. Leo Rolle, CEO of the Bahamas Chamber of Commerce and Employers Confederation, confirmed to Eyewitness News that members of the business community have also voiced growing concerns over rising power costs and their impact on operations.
As part of its consumer outreach, BPL is advising customers to adopt energy-saving habits, such as setting air conditioning units to 78°F, unplugging unused electronics, using LED lighting, and limiting use of high-energy appliances during peak hours.
Customers are encouraged to contact BPL’s customer service department for billing assistance or to learn more about the rebate.
