NASSAU, BAHAMAS — Ministry of Energy and Transport Jobeth Coleby-Davis revealed in Parliament yesterday that the government plans to implement a social tariff to mainly protect the country's most vulnerable households, a move which will reduce the cost of the first 200kWh for residents.
During her contribution to the debate on the Speech from the Throne resolution, Coleby-Davis said that a comprehensive plan has been devised to not only address the energy crisis but also pave the way for a brighter and more sustainable energy future for the country.
"Better and more affordable electricity is not just a possibility; it is our mandate, and we will make it a reality during this administration. The stakes are high, but so is our commitment to fulfilling our mandate to the benefit of all Bahamians: those who believe in our promises when facing the polling stations and all those who still have hope in our country's future and the government's drive for change," said Coleby-Davis.
She noted that her work is being founded on four pillars, namely, protecting the country's most vulnerable citizens, reforming the electricity governance structure, re-energizing of Bahamas Power & Light (BPL), and transitioning to cheaper and cleaner energy generation sources.
"The government plans to implement a social tariff to protect the particularly the country's most vulnerable households, a move which will reduce the cost of the first 200kWh for residents. This will lower bills for all residents, but it will be particularly impactful for those of modest means," said Coleby-Davis.
"Additionally, we will educate consumers on how to control their energy usage. An awareness campaign focused on energy consumption and efficiency is crucial in our efforts to safeguard our most vulnerable citizens. We need to educate and raise awareness about household practices that can collectively reduce the burden on our energy infrastructure, lower bills, and ultimately create space for us to enhance our system's resiliency. In other countries, access to and utilization of energy are considered fundamental rights."
Coleby-Davis further stated that the lack of clarity in the sector's governance is not entirely conducive to cultivating a high-performance culture in the energy sector.
"The roles and responsibilities of all stakeholders must be clearly defined for accountability and decision-making. The energy sector is complex, with numerous actors, but we currently lack a structured framework for strategic planning. As Energy Minister, one of my mandates is to bring organization and efficiency. We will redefine sector governance through an amendment to the Electricity Act of 2015, establishing clear roles in Direction, Planning, Regulation, Operation, and Control.
"We will also present a comprehensive long-term Energy Plan, one to be embedded in an updated Energy Policy."
Colbey-Davis said that the backbone of BPL's current crisis is its high debt.
"To solve this reality, we first need to clarify its numbers and understand what actions are compounding its increase. There needs to be an audit of BPL's supply chain to understand its total debt obligations and other financial arrears to various entities. The audit should also include an analysis of all rental contracts, including energy generation, vehicle, and ancillary equipment at BPL. While these business arrangements have been instrumental in helping us keep our lights on, a broader discussion is warranted on the cost and terms under which we engage in these services."
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