By Maliyah Connolly
Journal Staff Writer
In recent days many Bahamian home and business owners have been voicing
concerns about the recent hike in electricity bills. in response, Bahamas Power and
Light on Wednesday released a statement in hopes of clarifying the sudden
increase.
The power company began by noting that electricity usage typically rises during
the summer due to the extended use of air conditioning and other cooling
appliances, pointing out that many households are now surpassing the 200-kwh
threshold, which means they are billed at a higher rate.
The company says customers should note that the fuel charge, which is a variable,
pass-through rate, increased in June due to BPL’s current reliance on diesel
generation.
BPL insists it does not profit from the fuel charge; and says it is directly tied to the
cost of fuel used to generate electricity. The statement goes on to explain that for
the June 2025 billing period, the fuel charge was 18.99 cents per kwh for
customers using up to 800 kwh. 22.19 cents per kwh for usage above 800 kwh.
This is up from May’s rates of approximately 16 and 20 cents per kwh,
respectively.
Customer service director Donahue Ferguson says BPL’s goal is to help customers
understand the factors at play, whether it’s increased usage, a higher fuel charge, or
moving into a higher billing tier and to equip them with the tools and support
needed to manage their electricity costs more effectively.
The government recently announced a summer energy rebate program which is
expected to take effect in the July billing period.
This initiative is hoped to bring relief to residential customers by lowering fuel
charge rates of 17.4 cents and 21.4 cents per kwh, with the government subsidizing
the difference to ease the burden on consumers.
The rebate is part of a broader national strategy to address high fuel costs, stabilize
pricing, and improve energy efficiency across the country.
Meantime BPL says it is preparing for a major transition to liquefied natural gas as
its primary fuel source by the fourth quarter of this year, a move expected to reduce
long-term fuel costs and improve reliability.
Well, the Free National Movement is certainly not impressed by the government’s
energy rebate programme.
In a subsequent press release Opposition leader Michael Pintard said the
government in its “typical pandering and knee-jerk way” ran to announce the
energy rebate programme in response to a barrage of complaints from BPL
customers, some of whom saw their power bill double in just one month.
Pintard said, “What Bahamians need is serious governance and honest stewardship
of their national utilities. This is not it. We appreciate the fact that BPL brought
some clarity to this so-called “rebate” with their statement today that stressed that
the Bahamian taxpayers will be the ones still footing the bill for this rebate via a
subsidy to BPL.”
The opposition leader demanded answers to a list of four questions. The first is
why is the Government pretending that Bahamians are saving money when the
funds to cover the rebate are still coming from Bahamian Taxpayers via the
Treasury? This is most diabolical. Secondly, which Budget and Line Item in the
Government will this subsidy be charged against, as the Opposition die not see any
funds in the upcoming budget for this expense.
The third question was what is the projected cost to the Public Treasury and the
Bahamian Public by this latest PLP misadventure? The final question Mr. Pintard
asked, given that this rebate is being funded by ALL Bahamian taxpayers, will the
government confirm that the customers of Grand Bahama Power and other private
utilities in the Family Islands will also get the same rebate that is being offered to
BPL customers?
“If not, how can the government defend taking money from Grand Bahamians and
some Family Island Taxpayers but not allowing them to benefit,” asked Pintard?
He said, there are laws in place that govern how fuel surcharges are to be applied
and what they can be used for. “But true to form, the PLP government is
sidestepping the laws and regulations with yet another reactionary and ill-
conceived intrusion into the affairs of a critical public utility,” said Pintard.
Pintard once again reminded of the Davis Administration “botched” handling of
the fuel hedge compounded in the spring of 2022 by ignoring its own appointed
Board and not adjusting the fuel surcharge which led to BPL running up fuel
arrears with their suppliers reportedly in excess of $90 million.