By LEANDRA ROLLE
Tribune Staff Reporter
lrolle@tribunemedia.net
PRIME Minister Phillip “Brave” Davis announced yesterday that Bahamas Power and Light 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.
However, he gave an assurence that the bill increases will only be temporary and are expected to come down over the next 12 to 18 months.
“For a large majority of BPL 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 $20 per month. If your current monthly bill is $182 or less, you fall in this category,” he said during a press conference at the Office of the Prime Minister yesterday.
“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 $300 to $400, so going forward, no VAT will be due on any electricity bills under $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.”
Plans to raise customers’ fuel charges were initially announced by BPL in late February, but the company later recalled the statement with government officials calling the announcement premature and ultimately denying the company approval for the increase.
However, months later, BPL CEO Shevonn Cambridge predicted the increase would still take effect.
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 surging fuel costs globally.
Addressing the government’s decision to delay the increase of electricity bills, Mr Davis said it was because of the economic hardship being experienced by Bahamians following COVID-19’s 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 also said.
Mr Davis said he wanted to see stronger economic growth and more Bahamians working before giving the power company the greenlight to raise electricity bills.
“When times are tough, coming up with an extra $20 a month is no small thing,” Prime Minister Davis continued.
“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.”
In a statement released yesterday, 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.
“During each phase of the implementation, customers can expect an increase of two cents per kWh up to 800kWh and 4.3 cents for all units over 800kWh,” the power provider added.
In an effort to help hurting Bahamians, Mr Davis listed several measures his administration will be implementing to help soften the impact of rising prices.
Among them include the decision to phase in the price increases incrementally, allowing for customers to better prepare.
“We have worked to minimise the impact in multiple ways: First, those who consume less, and a great many households fall in this category, will see a lower increase – two cents instead of 4.3 cents per kilowatt hour,” he said.
“Second, the increases are phased in over time, allowing consumers to plan ahead. And third, the VAT ceiling for electricity will now be raised from $300 to $400, so no VAT will be due on bills up to $400.
“And most importantly, these increases are short-term. After implementing price increases in stages, over the next four quarters, BPL calculates that the fuel charge will begin to come down.”
While acknowledging concerns about the timing of the rate increases considering that many are already struggling with economic hardship, Mr Davis pleaded with Bahamians “to hang in there just a little longer”.
“We have been working to find a way to fund this transition to cleaner energy and renewables, despite our enormous debt burden and fiscal crisis,” he said.
“This is one of the reasons I have worked so hard for our country to be the first in the world to sell blue carbon credits. We are going to protect our seagrasses and mangroves, and at the same time, earn revenue for the role they play in removing carbon from the atmosphere.
“We believe that using the new revenue from carbon credits to invest in renewable infrastructure is going to be an important part of the way forward on clean energy. For too long, high energy costs have hurt households and businesses alike.
“I know the short-term increases announced today are very unwelcome news. I wanted to be the one to tell you. And I ask you to hang in there just a little longer – our country is finally on a path to a very different energy future.”
Comments
Dawes 1 year, 6 months ago
Yet again another example of politics making it worse for everyone. When gas prices went up in February BPL should have increased their fees. However it wasn't a good time politically to do this so they didn't. I can only guess that now they have no choice and the increase has to happen. Which means the increase will be worse then it had to be to pay for the losses of the last few months and the interest on those losses. Strangest thing about it is they are doing this whilst gas prices are coming down. Imagine if gas goes down to $4.50 at the pump next year and you are still paying a lot more for BPL, due to the Government making a political decision in February. It seems although everyday is a new day, we the people are always left with useless Governments.
tribanon 1 year, 6 months ago
Cruel and corrupt Davis said, “Unfortunately, we can’t postpone the increase any longer."
The Bahamian people should respond by saying to him, "Unfortunately, we can't afford corrupt governments like yours any longer."
Snake must be laughing all the way to the bank as these increases in our electricity rates will allow him to charge even more for the fuel sold to BPL by his enterprises associated with Shell Western Supply and Trading Limited (SWST) and Shell North America.
tribanon 1 year, 6 months ago
Next will come huge increases in both the wage/salary ceiling and contribution rates for National Insurance combined with a significant lowering of benefit entitlements.
And cruel and corrupt Davis has plans for many other crushing increases in our cost of living as he and the elitist ruling political class go about living the life style of the rich and famous. Davis has his minions Halkitis and Wilson working overtime trying to squeeze every dollar and cent they possibly can out of financially strapped and suffering Bahamians who can barely afford food and necessary medications.
I take no joy in saying I have been warning for quite some time now that the unchecked political corruption and hard sucking on the 'tit' of Communist China controlled lenders in the international markets would soon turn us into the next failed state in our region with intolerable living standards for all but the select few ruling political elites.
benniesun 1 year, 6 months ago
Que Sera, Sera
sheeprunner12 1 year, 6 months ago
Davis continues to betray Bahamians with BPL.
Only Snake wins with this situation
realfreethinker 1 year, 6 months ago
It's a "NEW DAY" LMFAO
ted4bz 1 year, 6 months ago
Maybe I would have been better off and did what my neighbor did years ago, get someone in BPL to rig my meter to get free electricity. But then again, my neighbor is not the only one. There are many people in this town especially those in the Cowpen Road area who are also getting free electricity and never have to be bothered with any of this, because no one bothers them. Instead, it is more convenient and easier to just simply pounce on those dedicated to paying the bills. This is what government for the people looks like. What people they keep talking about tho?
John 1 year, 6 months ago
Bahamians and BPL must strongly consider SOLAR ENERGY. Every new construction should be required to have a minimum solar system that can power a fridg, tv and basic lighting. The system should be tied into the grid so that when the house occupants are mostly away during the daytime, the excess energy their system produces can be used to reduce the load on BPL. Persons who can afford to should be encouraged to install even larger solar systems and ‘sell’ excess power to BPL. In the US the plan is to totally eliminate gas powered vehicles in 10-15 years. And home will be designed not only with charging systems to power vehicles but vehicles to power homes in the event are f police wee outages. My prediction is that eventually vehicles built for countries like The Bahamad will be imbedded with solar panels in the roof hood and trunk top. These vehicles will not only be able to charge themselves when parked during the sunlight hours, but can feed power back to homes or businesses when there is a power outage. Imagine every vehicle parked at LPIA over a long holiday weekend connected and feeding power into the grid. Instead of getting a $40-50 ticket for parking when they return, the vehicle owners get a $10-$29 rebate for their home electricity bill. Imagine how much this will cut down on power outages even.
1voice 1 year, 6 months ago
I totally agree...but first the government needs to get rid of the stupid requirement that every building MUST have an electrical meter. If a home can sustain its own power without BPL then that home should be given an occupancy permit. There are many individuals and businesses that would keep their places off the grid if they could as they are able to.
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