Bahamians to see increase in monthly electricity charges
Bahamas Prime Minister Philip Davis

NASSAU, Bahamas (CMC) – The Bahamas government has confirmed that the country’s main electricity company will be increasing its monthly fuel charge in response to rising fuel costs, with the rate increase set to be reflected in consumers’ electricity bills beginning November.

But Prime Minister Philip Davis said the increases will be temporary and are expected to come down over the next 12 to 18 months.

“For a large majority of BPL (Bahamas Power and Light) customers, who consume less than 800 kWh (kilowatt hours), the fuel charge is increasing by two cents per kWh, which will result in an increase this quarter of less than US$20 per month. If your current monthly bill is US$182 or less, you fall in this category,” he said.

“For those who consume more than 800 kWh, the increase will be 4.3 cents per kWh. I want to note here that we will raise the VAT ceiling from US$300 to US$400, so going forward, no VAT will be due on any electricity bills under US$400, which will take some of the sting out of the 4.3 cent increase for a great many BPL consumers subject to the larger increase,” Davis further explained.

In February, BPL announced plans to increase customers’ fuel charges, but the company later recalled the statement which the government described as premature before ultimately denying the company’s request for an increase.

Bahamas Works and Utilities Minister Alfred Sears later said that BPL would have no choice but to pass on increased fuel costs to its customers by higher electricity bills unless the government provides a subsidy to the company, which it eventually did given the surging fuel costs globally.

Prime Minister Davis, addressing the government’s decision to delay the increase of electricity bills, said it was because of the economic hardship being experienced by Bahamians following the coronavirus (COVID-19) impact and most recently, the inflationary cost of living.

“On top of that, in February, the Russian-Ukrainian war began, disrupting global trade and raising oil and gas prices sharply,” he said, adding he wanted to see stronger economic growth and more Bahamians working before giving the power company the green light to raise electricity bills.

“When times are tough, coming up with an extra US$20 a month is no small thing. Introducing the increase at this time of the year coincides with lower electricity consumption as opposed to the increase coming during the spring and summer months, when people consume more electricity. During this interim period, the government decided to provide support for BPL operations for an interim period,” he said.

“Unfortunately, we can’t postpone the increase any longer. Now that we are past summer, and moving into a period of lower electricity usage, the government has approved BPL’s request for this phased-in increase,” the prime minister added.

BPL said the price increases will be gradually phased in from October 1 to November 30, 2022; December 1, 2022 to February 28, 2023; March 1 to May 2023; June 1 to August 31, 2023 and September 1 to November 30, 2023.

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