NASSAU, BAHAMAS — The government tabled legislation yesterday aimed at overhauling the current Electricity Act, modernizing regulations governing the supply of electricity, and repealing the Electricity Rate Reduction Bond Act, 2019, thus eliminating the requirement for financing through a rate reduction bond.
Minister of Energy and Transport, JoBeth Coleby-Davis, tabled the Electricity Bill 2024, which aims to replace the existing Electricity Act, repeal the Electricity Rate Reduction Bond Act, 2019, and update regulations concerning electricity supply with several key amendments.
The repeal of the Rate Reduction Bond Act passed in 2019 under the Minnis administration, marks the end of a controversial measure that failed to materialize, preventing the Bahamas Power and Light (BPL) from raising the intended $535 million through a bond offering. The financing was intended to address BPL’s legacy debts and modernize power generation. The Minnis administration had defended the Rate Reduction Bond Bill 2019 as an improvement on previous legislation. However, delays in its implementation persisted despite indications of readiness in BPL’s 2020-2025 strategic plans.
The Act presented by Coleby-Davis allows BPL to borrow money for its functions through securities issuance or overdraft. BPL may also guarantee the payment of interest or principal on borrowed funds, with all securities and interest charged against BPL’s revenues or specified assets.
Under the Act, the Utilities Regulation and Competition Authority (URCA) remains an independent regulator authorized to adjust tariff rates for significant cost fluctuations within a twenty-four-month period.
Additionally, the Bill aims to regulate renewable energy aspects, requiring public electricity suppliers to establish energy efficiency programs with incentives. URCA is tasked with promoting and overseeing these programs for all licensees and consumers. Dispute resolution mechanisms and regulations governing the use of artificial intelligence in the electricity sector are also included in the Bill.
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