NASSAU, BAHAMAS — Opposition Leader Michael Pintard, in his latest salvo in an ongoing back-and-forth with Energy and Transport Minister JoBeth Coleby-Davis, is accusing the Government of locking Bahamas Power and Light into costly long-term obligations that could undermine the utility’s financial future, arguing that the Minister’s defence of the reform agreements is fundamentally flawed.
The Opposition Leader said the Minister’s justification “rests on a fundamental and misleading comparison,” contending that she has conflated fuel costs with fixed generation and grid charges that directly affect BPL’s bottom line.
“At the centre of the Minister’s response is a basic error: she continues to mix fuel costs with fixed generation and grid charges. They are not the same, and they do not affect Bahamas Power and Light (BPL) in the same way,” Pintard said.
He argued that fuel costs are a pass-through paid entirely by consumers through the fuel surcharge and do not support BPL’s operations, debt reduction, or infrastructure maintenance.
“What determines whether BPL survives or fails are the non-fuel costs — the fixed charges locked into long-term generation and transmission contracts,” he said. “Those are the payments that drain BPL’s revenue. Those are the costs this Government has now locked in for decades.”
Pintard pointed to the 4.65 cents per kilowatt-hour charge under the New Providence generation agreement, saying it is a fixed generation cost “before fuel is added” and not tied to fuel prices.
“In simple terms, BPL is required to buy electricity at 4.65 cents per kilowatt-hour before fuel and other charges are applied. That is a fixed cost. It is not tied to fuel prices, and it is not temporary; it is written into the contract,” he said.
He also warned that new transmission arrangements could significantly reduce the utility’s revenue base. Under the agreement, Bahamas Grid Company will receive 5.5 cents per kilowatt-hour for electricity transmitted and billed in New Providence — nearly half of the average billed rate of about 11.4 cents per kilowatt-hour.
“Bahamas Grid takes 5.5 cents immediately. That is nearly half of billed revenue gone before BPL pays salaries, services debt, maintains infrastructure, or supports Family Island operations,” Pintard said, adding that collection rates below 100 percent further increase the private operator’s share of actual cash received.
The Opposition Leader also criticized workforce arrangements, noting that no BPL transmission and distribution employees agreed to be seconded to the grid company, leaving BPL with approximately 123 workers on payroll while paying the private operator to hire a separate workforce.
“That is duplication at public expense,” he said.
Pintard further argued that despite outsourcing generation and grid operations, BPL’s workforce has grown from fewer than 800 employees in 2021 to more than 1,000 today, while the utility retains less revenue and faces higher fixed obligations.
He warned that taxpayers could ultimately bear financial risks under the agreements, particularly in the event of hurricane damage, while questioning whether projected revenues can cover long-term payment commitments estimated at $80 million to $90 million annually for transmission and distribution alone over 25 years.
“If the answer is yes, the Government should publish the full business plan showing how these payments are sustained without increasing rates or accumulating losses,” he said. “If the answer is no, the Bahamian people deserve to know who will pay the difference and for how long.”
Pintard said the Free National Movement will continue examining the agreements and presenting its findings to the Bahamian people, warning that the contracts will shape the country’s electricity sector for decades.
