NASSAU, BAHAMAS – In alignment with its Operating Protocol and Regulatory Framework, the Grand Bahama Power Company (GBPC) filed a rate plan proposal with the Grand Bahama Port Authority (GBPA) on August 1, 2024. The filing is comprised of two elements: a request for an increase in base rates to maintain operations and investment going forward, and a System Resource Plan that aligns our operations with the Government of The Commonwealth of The Bahamas’ target of 30% of the island’s electricity needs fueled by renewable energy by 2030.
GBPC’s filing requests consideration of an increase in the base rate of 6.3% for all customers, which is below The Bahamas’ inflation rate over the past several years of 7.3%.
Balanced with the Company’s effective fuel purchase strategy, which brings rate stability through 2027, the proposed rate change would result in a small all-in decrease for the majority of electricity customers. The all-in rate includes all elements of monthly electricity bills including the fuel charge.
“It’s important for customers to understand that the proposed rate change will not impact the fuel portion of monthly electricity bills, meaning that about 40% of the bill will not change as a result of the requested increase,” explained Nikita Mullings, GBPC Chief Operating Officer. “With the impact of our fuel hedging programme, Residential, General Service Large, and Large Industrial customers are forecasted to receive a small reduction on an all-in basis, while Commercial customers would see a small, estimated increase of less than 2%,” the GBPC said.
If approved, the requested change in base rates will come into effect on January 1, 2025.
“Since our last rate adjustment in April 2022, we have seen reduced sales from our GSL customer classes due to lower energy consumption, the loss of our largest customer and significant inflationary pressures,” added Ms. Mullings. “We know there is no good time to propose a rate increase, but the requested adjustment is essential to maintain and improve the efficiency and reliability of our services, and to allow us to invest in critical infrastructure maintenance, as outlined in our System Resource Plan, to enable the integration of renewable energy sources in keeping with the Government’s targets.”
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