NASSAU, BAHAMAS—A top Bahamas Power and Light (BPL) executive stated yesterday that while electricity rates have been reduced, higher consumption during the hot summer months could increase overall costs for consumers.
Speaking at a press conference at the Office of the Prime Minister, BPL’s Chief Operating Officer, Tonie Seymour, noted: “The rates have been reduced. The new tariff structure is that for consumption between 0-200 kilowatt hours, there is no charge—you only pay for fuel. For 201-800 kilowatt hours, the rate is still 11.95 cents. For consumption above 800 kilowatt hours, the rate remains 14.95 cents, with the fuel surcharge based on your total consumption. Bills should have gone down; however, if you are not using energy-saving tips and conservation measures, you may see an increase in your overall consumption, which could result in higher bills.”
In recent weeks, consumers have taken to social media to express shock over the dramatic increase in their electricity bills. Prime Minister Philip Davis revealed in Parliament back in June that power bills would come down by July 1st.
“On July 1st, BPL will introduce an Equity Rate Adjustment, which will adjust rates based on the amount of power consumed,” Davis said. “This adjustment will benefit all households, as the first 200 kilowatt hours consumed will have a base rate cost of zero dollars for everyone.”
Explaining how the new charges will work, Davis added, “However, the biggest savings will be experienced by those who consume the least electricity. We will simultaneously roll out a decrease in the tariff rate for fuel costs on electricity bills, delivering savings for all homes that consume less than 800 kilowatt hours per month. This includes the majority of households.”
He continued, “The average home consumes 655 kWh, which is well below 800 kWh. These changes will produce significant savings for these households, particularly for smaller homes and homes where incomes are below average. This reduction will provide much-needed relief so families can have more money for groceries, school supplies, and other necessities. The money saved will be spent at local businesses, further stimulating the economy.”
Davis encouraged Bahamians to check their bills at the end of July to see the savings for themselves. “Your first 200 kWh will have a cost of zero dollars, and your fuel surcharge will be lower compared to the previous month. Add up the savings yourself. And know that as LNG and solar are incorporated, your bills will go down even more.”
He also pointed out that the introduction of lower rates aligns with the intentions behind the Electricity Act (2024). “Contrary to the idle chatter by the side opposite, the changes to the law will allow rates to be lowered quickly without delays.”
Seymour assured that challenges related to energy generation on Eleuthera would be resolved, with several short-term solutions to be implemented by the end of September.
“We are working,” she said. “In terms of our short-term solutions, we plan to install additional megawatts of generation at our Rock Sound station to ensure reliability at what is considered an aging plant. We will also install six megawatts of rental generation at the Hatchet Bay Power Station. Additionally, we are upgrading the subsea cable between mainland Eleuthera and Harbour Island. All of these projects are expected to be completed before the end of September. BPL anticipates more than 15 megawatts of additional generation capacity to be available by the end of September 2024.”
She noted that the challenges related to a generation shortfall would be resolved despite traffic accidents and weather storms, which are beyond BPL’s control.
“There will be some outages, but these should be significantly reduced.”
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