PM says increase cannot be postponed further
NASSAU, BAHAMAS — Electricity bills are set to increase next month and in quarterly increments over the next 18 months as Bahamas Power and Light has been approved to increase its monthly fuel charge by just over four cents.
Customers using less than 800kWh will see an increase of two cents p/kWh, and those using more power will see an increase of 4.3 cents p/kWh in four increments, peaking in September 2023.
In a statement, BPL said the increases will take effect: October 1 to November 30, 2022; December 1, 2022 to February 28, 2023; March 1 to May 31, 2023; June 1 to August 31, 2023.
The price p/kWh is then slated to decrease at the same rate in two phases: September 1 to November 30, 2023; and December 1, 2023 to February 28, 2024.
The increase will be seen on monthly bills in November.
Prime Minister Philip Davis announced the fuel charge increase at a press conference with BPL executives at the Office of the Prime Minister this morning.
For those low-energy consumers, Davis said the increase seen this quarter will amount to less than $20 per month.
The VAT ceiling will be raised to remove the tax from all bills under $400 in a bid to “take some of the sting out” for consumers facing larger increases, he said.
“The bottom line is that monthly bills will go up over the next several quarters before they begin to come down in 12 to 18 months,” Davis said.
“I know these short-term increases are very unwelcome news, and I know these increases are coming at a time when a great many families are already struggling. As you know all too well, our country has for several years been in a very serious economic and fiscal crisis. We have come a long way over the last year. We have started our recovery in a very meaningful way. A lot more Bahamians are working. And we are reducing the nation’s debt burden. And we have stabilized our finances. But there’s still a long way to go.
Davis said: “There are too many households that no one has found work yet or one job is supporting a large family. And after Hurricane Dorian and the COVID lockdowns, when finally things were starting to look up, we were hit by yet another big shock to our economy, a global inflation crisis, a crisis caused by supply chain interruptions, and other kinds of fallout from the pandemic.”
“Prices have increased on nearly everything everywhere. And you all know that global inflation, it’s those of us who live in small island nations, especially hard on top of that.”
Davis noted the decision was delayed earlier this year to provide relief to families but could no longer be postponed.
“For too long, high energy costs have hurt households and businesses alike,” Davis added.
“I know the short-term increases announced today are very unwelcome news. I wanted to be the one to tell you. I ask you to hang in there just a little longer. Our country is finally on a path to a very different energy future.”
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