NASSAU, BAHAMAS — Opposition Leader Michael Pintard is warning that the government’s new energy agreements will drive up electricity costs and shift significant financial risks onto Bahamian consumers, arguing that the contracts lock the country into “some of the highest” power prices in the region for decades.
“The Government’s new energy contracts… are not good for Bahamians, they were not designed with Bahamians in mind, and the people who will pay the price are the same ones already struggling with their light bills every single month,” Pintard said.
Citing what he described as a detailed review by the Free National Movement (FNM), Pintard said the agreements commit Bahamas Power and Light (BPL) to base electricity prices ranging between 23 and 25 cents per kilowatt-hour—before additional fuel, logistics, and other charges are applied.
“The facts speak for themselves, and they come directly from the Government’s own signed agreements. Bahamians are being charged two to three times more than everyone else in the region,” he said.
He contrasted those rates with other Caribbean jurisdictions, noting: “Jamaica pays 8 to 9 cents for the same kind of power. Barbados pays 10 to 12 cents. Turks and Caicos pays 11 to 13 cents. Bermuda pays around 11 cents. The Bahamas is paying almost triple what our neighbors pay.”
Pintard also criticized the procurement process, claiming the agreements were not subject to competitive bidding. “And unlike our neighbors, the Government did not put these contracts out for open competition. There was no process to force companies to offer their best price. They simply signed the contracts, and Bahamians are left to foot the bill.”
According to Pintard, the agreements also include built-in annual price escalators. “Buried inside these contracts is a clause that automatically raises prices every single year. The minimum increase is 2.5 percent. The maximum is 5 percent, and this goes on for 20 to 25 years, whether the service improves or not.”
He added: “Other islands in the Caribbean allow prices to go down when conditions improve. Not under the PLP. These contracts only go one way: up.”
Beyond pricing, Pintard argued that the contracts expose the public to major storm-related liabilities, despite increased private sector involvement in the power grid.
“A private company now controls 60 percent of the New Providence power grid, but when a storm comes and tears that grid apart, the contract makes clear who is responsible for the repair bill. Not the private company. Not the investors. The Bahamian people,” he said.
“There is a hurricane fund written into the deal, but Bahamians pay into it through their bills. The private company contributes nothing. There is no requirement for them to carry hurricane insurance.”
Pintard said this structure mirrors challenges faced in other jurisdictions. “Puerto Rico and the US Virgin Islands learned this lesson the hard way… Our contracts require nothing of the sort.”
He further argued that the agreements do not ensure long-term public ownership of energy infrastructure. “In countries that do these kinds of energy deals properly… once the private company has made back its investment, ownership of the infrastructure is returned to the public… Not here.”
“Bahamians pay for the system over time, but the private owners are not required to hand it back,” he added.
The FNM’s accompanying analysis, titled “Where the New Era Energy Agreements Fall Short,” acknowledged that the contracts contain elements typical of modern power purchase agreements but argues that key financial and risk provisions are heavily skewed.
“In short: while these agreements are dressed in the language of modern energy reform, they leave the country bearing the highest costs and the greatest risks, with little contractual protection in return,” the report states.
Pintard said the cumulative effect of the agreements will be long-term upward pressure on electricity bills, increased exposure to hurricane-related costs, and limited flexibility for BPL to respond to changing market conditions.
“These contracts lock the Bahamas into some of the highest electricity costs in the entire Caribbean. They guarantee automatic price increases for decades. They leave the public on the hook when hurricanes destroy the grid. And they do not even require the private companies to return what Bahamians paid for,” he said.
The Opposition is now calling for full transparency around the agreements. “The Free National Movement is calling on the Government to open the books. Publish the full financial plan. Show Bahamians what their bills will look like in 5, 10, and 20 years.”
“If this deal is good for Bahamians, prove it. Show the numbers. Let the public see the truth,” Pintard added.
