Garfield Ekon
Staff Writer
The Bahamian Government, through the Electricity Bill 2024 and Natural Gas Bill 2024, is moving to create more equity in its energy sector, to end a system where households pay more than large businesses.
Speaking during a debate on the Bill, at the House of Assembly, on May 1, Energy and Transport Minister, JoBeth Coleby-Davis said the Bahamas Power and Light (BPL’s) tariff rates have been in place since 2010, and persons she described as the “least able to pay” are being burdened.
She said a study of the rates is being done to establish effective prices and classifications, noting that the island has grown since the current tariff came into effect. “With this growth comes an increase in demand, and at all times, BPL must find means and ways to provide access to electricity, with annual forecasted demand growth at a steady three to five per cent annually,” the Minister said.
Stressing that “there is an urgent need for a tariff review and adjustments,” she said it will ensure that “we are fairly distributing rates, that they are more flat and equitable,” and the existing BPL rates will be maintained for the next three years while the review is ongoing.
The Minister told the House that if BPL seeks to modify its rates before the end of the three years, it must convince the Utilities Regulation and Competition Authority (URCA), before the change.
Minister Coleby- Davis pointed out that a section of the Electricity Bill that allowed the BPL and other electricity providers to charge different tariffs and prices to different groups of customers for a transition period of three years without approval from URCA, has been amended.
She said it is to “ensure that URCA’s continued role in approving tariff changes under section 38(8) remains steadfast and unaltered. Some have said that URCA is being cut out as regulator, particularly regarding the approval of tariffs. This is not the case,” the Minister said.
The Natural Gas Bill will among other things, expand URCA’s oversight to include the natural gas sector, and Minister Coleby- Davis said the scope of regulation regarding fuel charges was unclear, leading to ambiguities in oversight, so the Bill aims to eliminate the uncertainties by explicitly stating that “URCA regulates all rates and scales of charges for all licensees,” and the Government reform of the energy sector, is a firm commitment to fair play.
“This is particularly relevant as liquified natural gas (LNG) is likely to become a significant fuel source for electricity generation, and URCA’s oversight in this area could lead to more efficient and potentially lower-cost electricity production, benefiting the entire energy sector,” the Minister said.