The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

THE Utilities Regulation and Competition Authority will review Bahamas Power and Light’s fuel tariff in 2026, a move that could determine whether consumers have been fairly charged for fuel costs that make up a major part of their electricity bills.

URCA officials said the review and audit will examine whether BPL’s fuel cost recovery system complies with the law and whether the costs passed on to customers reflect efficient procurement and operations.

The review matters because fuel costs are passed directly to electricity consumers. If those costs reflect inefficient purchasing or weak operations, customers could be left to absorb charges that should not have been included in their bills.

During a press conference last week, officials said BPL’s fuel tariff has been a major issue in recent years amid concerns over electricity rates and the utility’s efforts to recover costs after keeping rates stable during the COVID-19 pandemic and the years immediately before it.

Following a consultancy launched in 2024, URCA said it decided to examine electricity tariffs through a more comprehensive approach in line with the Electricity Act.

Under the Electricity Act, which came into force in 2024, the Minister of Energy was granted authority to set electricity tariff rates until June 2027, including social relief and other tariff categories. The minister later exercised that authority, meaning BPL’s current electricity rates are now set by the government.

However, URCA said that before the minister’s authority expires, public electricity suppliers, including BPL, Grand Bahama Power Company, RAV Bahamas and Bakers Bay Utilities, must submit tariff plans to the regulator for review.

“The Act mandates that before the minister’s power sunsets, at least six months before, the public electricity suppliers would have to submit to us a tariff plan that we would review,” officials said.

URCA said it has already completed its review of BPL’s tariff structure and expects to release its findings in the coming months.

On the telecommunications side, URCA said reliability remains a major concern, particularly in the Family Islands. Work conducted in 2025 will help shape a broader review of its quality-of-service framework, with additional findings expected to be published later this year.

The authority also completed a nationwide assessment of universal service obligations, which will form the basis of a public consultation later this year and help guide future decisions on implementation and funding mechanisms.

URCA said it is also advancing its long-running initiative to improve information and communications technology accessibility for persons with disabilities.

Officials said the project was restarted in 2025 and that additional surveys and public consultations are planned to gather feedback from the differently-abled community and electronic communications providers.

The regulator also expects to continue overseeing the implementation of remedies arising from its review of fixed-line telecommunications and pay television markets.

Meanwhile, URCA reported total income of $10.49m for 2025, about $500,000 below budget. Actual operating expenses totalled $8.34m, nearly $2.7m under budget, largely reflecting lower-than-budgeted spending on professional services, premises costs, office services, consumer education and doubtful accounts.