GBPC: 42% of customers will see increase of $1 or less per month
Opposition slams rate increase approval as “deeply disappointing”
NASSAU, BAHAMAS — The average residential customer on Grand Bahama will see a $3.50 increase in their monthly electricity bills in light of the approval of a 3.3 percent base rate adjustment, according to Grand Bahama Power Company (GBPC) executives.
The company, in a statement yesterday expressing its satisfaction with the response from its regulator — the Grand Bahama Port Authority (GBPA) — on its September 2021 rate filing, noted that the base rate adjustment will have varying impact on customers depending on customer class and energy consumption.
The company noted that also approved was the establishment of a new tier of customer, representing about 20 percent of the residential customer base, which consumes 200 kWh or less per month.
Nikita Mullings, the utility’s chief operating officer, explained: “GBPC’s monthly bills encompass base rate and fuel charge rate.
“The total monthly energy bills will increase by two percent to 2.5 percent depending on consumption levels. For the average residential customer, this represents about $3.50 per month.
“Those residential customers who consume up to 200 kWh per month — those who fall in the new Efficient user tier — will see no increase in their rate.
“Further, residential customers consuming 201 to 350 kWh will see an increase of one percent or less.
“These two classes of customer represent 42 percent of our residential customer base and will experience a total increase of one percent or less, translating to under $1 per month.”
The company said the rate adjustment will enable it to make investments in small, utility-scale solar plants as well as continued investment in Advanced Metering Infrastructure (AMI), including the installation of smart meters at every customer site.
The base rate adjustment has, however, been met with heavy criticism and disapproval from activists as well as the government and opposition.
Minister for Grand Bahama Ginger Moxey, in a statement yesterday, noted that from the outset, the government clearly stated it does not support any rate increase on any portion of the customer base on Grand Bahama.
Moxey further noted that the government was successful in persuading the GBPC to revise its initial rate increase proposal, which resulted in a decrease from 6.3 percent to 3.3 percent.
“The government continues to call for compassionate leadership during a time when social consciousness should be an integral part of the restoration of the Grand Bahama community and economy,” said Moxey.
“We remain resolute in our commitment to the growth and development of Grand Bahama Island, and the people of Grand Bahama.”
The Free National Movement (FNM) said in a statement it is “deeply disappointing and inconsiderate” of the plight of residents and entrepreneurs for the GBPA to have approved an increase in electricity rates by GBPC.
FNM Leader Michael Pintard said: “Grand Bahamians in the last few months have had to endure increased VAT (value-added tax) costs on breadbasket items and medication, increased inflation causing a rise in the cost of living and the increase in construction costs with VAT now added to construction services.”
He added: “While the regulator claims to have conducted public consultation, the majority of Grand Bahamians were not able to have their views heard.
“In addition, the vast majority of Grand Bahamians that had the opportunity were absolutely opposed to any rate increase at this time.
“Grand Bahama’s economy continues to struggle through recovery which requires new and increased investments.”
He noted that one of the largest impediments to investments has been the cost of electricity on Grand Bahama.
“This decision is counterproductive and will make it even more difficult to attract and expand investments,” said Pintard.
“While we are sympathetic to the economic plight of GBPC, we are even more mindful of the struggling residents and businesses fighting their own economic challenges and this increase will only be another blow to the island’s recovery.”
