NASSAU, BAHAMAS — The Grand Bahama Power Company (GBPC) has announced that effective November 1 the fuel cost to its consumers will increase to 11.5 cents per kWh from the current rate of 10 cents per kWh, with a local advocacy group slamming the move as “the wrong thing to do at this time”.
Pastor Eddie Victor, head of the Coalition for Concerned Citizens told Eyewitness News that in light of the ailing Grand Bahama economy, coupled with the pressures of global inflation, an increase in electricity costs would increase the burden on residents.
GBPC said that the increase is a direct reflection of the rise in global oil prices over the year.
“With GBPC’s fuel purchase strategy, or fuel hedging program, we have been able to protect customers from global price volatility as the cost of oil has risen this year,” said Nikita Mullings, Chief Operating Officer at GBPC.
The company said that in order to minimize price fluctuation and provide cost predictability for its customers, it began hedging in 2014. According to the company, 80 percent of the fuel it purchases is hedged, and the remaining 20 percent is purchased at current market prices.
“We know there is never a good time for a rise in costs, and these are particularly difficult times for many Grand Bahamians,” said Mullings.
“Without hedging, fuel costs would be at about 18 cents per kWh. For 2023 we’ve managed to hedge our fuel costs at less than $51 a barrel. Based on current market trends the fuel charge for 2023 should range between 12 to 14 cents/kWh. It’s clear our fuel strategy continues to benefit customers despite the unprecedented rise in global oil prices. With the continued price volatility, we will be communicating regularly with customers on fuel costs. Beginning in November and every month thereafter, we will be advising customers of the fuel cost monthly.”
With the November 1 increase, a residential customer consuming 350 kWh in a month will see the fuel portion of their bill rise by approximately $5.
“We want to encourage customers to be mindful of energy use and to consider adopting habits such as limiting air conditioning use, turning lights out, and lowering hot water consumption to help manage monthly electricity costs,” added Mullings.
Victor said he was not surprised by the move.
“Every time the wind blows, companies like them do this,” hecontinued.
“It’s they really wanted to bring down the cost of electricity they would find a way. That is why you need a new power company to give us a model of power generation this island needs. What the island does not need is an increase in electricity costs at this time. The economy in Grand Bahama is in bad shape. It’s the wrong thing to do at this time.”
Back in January, the Grand Bahama Port Authority (GBPA) granted GB Power an average base rate increase of 3.3 percent, as opposed to the 6.3 percent it had originally sought.
