Rate increases on the way for BPL customers

Thu, Oct 6th 2022, 10:38 AM

Business Finance

Customers of Bahamas Power and Light can expect to

see an increase in their electricity bills effective October, with the increase being

reflected in the November billing cycle. Prime Minister and Minister of Finance,

the Hon. Philip Davis made the announcement during a press conference,

October 4, 2022 at the Office of the Prime Minister. He said the decision to

proceed with the hike came after months of deliberation given the current

economic situation in the country and globally. Also in attendance at the Press

conference were: Minister of Works and Public Utilities, the Hon. Alfred Sears and

Minister of State in the Office of the Prime Minister, the Hon. Myles Laroda.

“Today, BPL is announcing an increase in the monthly fuel charge,” said Prime

Minister Davis. “For a large majority of BPL customers, who consume less than

800 kWh (kilowatt-hours), the fuel charge is increasing by 2 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. For those who consume more

than 800 kWh, the increase will be 4.3 cents per kWh.”

He noted, however, that the government has also raised the VAT ceiling on

electricity bills from $300 to $400, therefore, there will be no VAT due on

electricity bills under $400.

He said: “The increases in rate will be phased over a period of time in order to

meet the rising and fluctuating costs in fuel. BPL will provide additional details of

these changes, which phase in over time. The bottom line is that monthly bills will

go up over the next several quarters, before they begin to come down, in 12 to 18

months.”

Prime Minister Davis said that he knows that the rate increase announcement is

not welcome news for Bahamians.

“I know that these short term increases are very unwelcome news. And I know

that these increases are coming at a time when a great many families are already

struggling. As you know all too well, our country has for several years, been in a

very serious economic and fiscal crisis. We’ve come a long way over the last year.

We have started our recovery in a very meaningful way: a lot more Bahamians are

working and we are reducing the nation’s debt burden and we have stabilized our

finances.”

He said that the country has been challenged especially due to Hurricane Dorian,

the pandemic, supply chain issues and the rising costs of fuel and food items due

to the war in Ukraine.

Prime Minister Davis said there was discussion in February about increasing the

cost of fuel, however, a decision was made to postpone the increase. That is,

until now.

“We made the decision to postpone the increase and keep the charge [as] low as

possible, given the hardship Bahamian households were facing after so many

difficult years in a row, and given other inflationary pressures. Our economy is

growing adding new jobs every month, and I wanted to see more Bahamians

working before we asked families to pay a higher light bill. When times are tough,

coming up with an extra $20 a month isn’t small thing.”

The Prime Minister ended his statement by saying: “I wanted to be 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.”

Chief Executive Officer of Bahamas Power and Light, Shevonn Cambridge, said

that BPL will continue to work with its customers. It has created a customer

service line to answer inquiries and to make payment arrangements for those

accounts in arrears.

The new line is : 225-5275.

The new rates for consumption of less than 800 kWh per month:

October 1 - November 30, 2022, new charges : 12.5 cents

December 1 - February 28, 2023, new charges: 14.5 cents

March 1 - May 31, 2023, new charges: 16.5 cents

June 1 - August 31, 2023, new charges: 18.5 cents

September 1 - November 30, 2023 new charges : 18.5 cents

December 1 - February 2024 new charges - 17 cents

The new rates for greater than 800 kWh per month:

October 1 - November 30, 2022, new charges : 14.8 cents

December 1 - February 28, 2023, new charges: 19.1cents

March 1 - May 31, 2023, new charges: 23.3 cents

June 1 - August 31, 2023, new charges: 27.6 cents

September 1 - November 30, 2023, new charges: 25 cents

December 1 - February 2024, new charges: 18 cents

Customers of Bahamas Power and Light can expect tosee an increase in their electricity bills effective October, with the increase beingreflected in the November billing cycle. Prime Minister and Minister of Finance,the Hon. Philip Davis made the announcement during a press conference,October 4, 2022 at the Office of the Prime Minister. He said the decision toproceed with the hike came after months of deliberation given the currenteconomic situation in the country and globally. Also in attendance at the Pressconference were: Minister of Works and Public Utilities, the Hon. Alfred Sears andMinister of State in the Office of the Prime Minister, the Hon. Myles Laroda.

“Today, BPL is announcing an increase in the monthly fuel charge,” said PrimeMinister Davis. “For a large majority of BPL customers, who consume less than800 kWh (kilowatt-hours), the fuel charge is increasing by 2 cents per kWh, whichwill result in an increase this quarter of less than $20 per month. If your currentmonthly bill is $182 or less, you fall in this category. For those who consume morethan 800 kWh, the increase will be 4.3 cents per kWh.”

He noted, however, that the government has also raised the VAT ceiling onelectricity bills from $300 to $400, therefore, there will be no VAT due onelectricity bills under $400.

He said: “The increases in rate will be phased over a period of time in order tomeet the rising and fluctuating costs in fuel. BPL will provide additional details ofthese changes, which phase in over time. The bottom line is that monthly bills willgo up over the next several quarters, before they begin to come down, in 12 to 18months.”

Prime Minister Davis said that he knows that the rate increase announcement isnot welcome news for Bahamians.

“I know that these short term increases are very unwelcome news. And I knowthat these increases are coming at a time when a great many families are alreadystruggling. As you know all too well, our country has for several years, been in avery serious economic and fiscal crisis. We’ve come a long way over the last year.

We have started our recovery in a very meaningful way: a lot more Bahamians areworking and we are reducing the nation’s debt burden and we have stabilized ourfinances.”

He said that the country has been challenged especially due to Hurricane Dorian,the pandemic, supply chain issues and the rising costs of fuel and food items dueto the war in Ukraine.

Prime Minister Davis said there was discussion in February about increasing thecost of fuel, however, a decision was made to postpone the increase. That is,until now.

“We made the decision to postpone the increase and keep the charge [as] low aspossible, given the hardship Bahamian households were facing after so manydifficult years in a row, and given other inflationary pressures. Our economy isgrowing adding new jobs every month, and I wanted to see more Bahamiansworking before we asked families to pay a higher light bill. When times are tough,coming up with an extra $20 a month isn’t small thing.”

The Prime Minister ended his statement by saying: “I wanted to be one to tellyou. And I ask you to hang in there just a little longer -- our country is finally on apath to a very different energy future.”

Chief Executive Officer of Bahamas Power and Light, Shevonn Cambridge, saidthat BPL will continue to work with its customers. It has created a customerservice line to answer inquiries and to make payment arrangements for thoseaccounts in arrears.

The new line is : 225-5275