NASSAU, BAHAMAS — The Utilities Regulation and Competition Authority has seen the number of licences it oversees in the energy sector rise from six to 23 in under two years, reflecting the regulator’s expanded mandate under the Electricity Act 2024, the Natural Gas Act 2024, and the National Energy Policy 2025–2030.
The Utilities and Energy Department now regulates electricity generation, transmission and distribution, natural gas importation, terminal development, and transportation infrastructure under newly established licensing frameworks. URCA said this expansion represents the most significant growth in its energy-sector responsibilities in its history.
According to URCA’s Draft Annual Plan for 2026, the expansion of regulated activity is expected to continue next year. New power plants are scheduled to begin construction and come online in New Providence and across the Family Islands, renewable energy systems are set to continue rapid growth, and natural gas infrastructure development will accelerate. Licences issued under the new framework are expected to remain in effect for decades, requiring long-term regulatory oversight, competition monitoring, agreement arbitration, and consumer protection.
The authority has also begun bringing private cruise destinations that generate, transmit and distribute electricity, and operate electronic communications systems outside traditional regulatory arrangements, into compliance as part of the transition to the new regulatory regime.
The Utilities and Energy Department (UED) will enter 2026 amidst a moment of extraordinary change for The Bahamas’ energy landscape. With the passage of the Electricity Act 2024, the Natural Gas Act 2024, and the implementation of the National Energy Policy 2025-2030, URCA has taken on a broader and far more complex mandate for energy regulation than at any point in its history. In less than two years, the department’s work has expanded from regulating six licensees to overseeing 23 by November 2025. URCA has also undertaken to bring private cruise destinations that generate, transmit, and distribute electricity and operate electronic communications systems outside traditional regulatory frameworks into compliance, URCA noted.
To support its expanded mandate, URCA says it has focused on strengthening internal capacity and organisational stability. With sector director posts filled, the regulator entered 2025 prioritising recruitment, training, and succession planning across regulated sectors, following a period of leadership instability.
In the final quarter of 2025, URCA launched a search for a new chief executive officer as the current CEO prepares to conclude his tenure. The regulator expects the successful candidate to be appointed within the first six months of 2026, subject to approval.
URCA is proposing an increase of approximately 12 percent in its 2026 operating budget, excluding depreciation. Staff costs are projected to rise by 15 percent to support four new positions, particularly within the natural gas sector, while compensation for executive and non-executive directors is expected to remain largely unchanged.
Professional services expenditure is projected to decline by 48 percent as regulatory work is completed in-house or deferred, while information technology, office services, and premises costs are expected to decrease following changes in service providers and the near completion of repairs at Frederick House. By contrast, spending on regulatory fieldwork is projected to increase by 225 percent to support enhanced monitoring and oversight across regulated sectors. Conference, training, and travel costs are also expected to rise in 2026 as URCA hosts international and national regulatory forums.
URCA
