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Government Mechanisms to Assist in Reducing the Cost of Electricity Explained

Wed, Jun 18th 2025, 11:26 AM
Politics

The Minister of Energy and Transport the Hon. JoBeth Coleby-Davis said one of the mechanisms that the Government introduced to assist in reducing the cost of electricity is the implementation of the Equity Rate Adjustment Initiative, better known as the ERA.

“Implemented in July 2024, the ERA has created a more equitable balance in the tariff structure and encourages energy conservation,” the Energy Minister said during her Contribution to the 2025/2026 Budget Debate in the House of Assembly on Monday, June 16, 2025.

She explained that under the ERA, the Government zero rated the base rate for the first 200 kilowatt-hours of monthly residential electricity.

“The aim of this policy decision is to lower the cost of electricity bills for households and ultimately the cost of living for Bahamian families.

“In conducting our assessment of the ERA, we have set a measurement benchmark of $125.00, which is based on an affordability analysis of average regional monthly electricity bills.”

The Minister said between January and May 2025, an average of over 63,000 households across The Bahamas received monthly electricity bills under $125.

“Specifically, 58,933 households were below this threshold in January, 63,058 in February, 64,053 in March, 67,693 in April, and 62,209 in May — reflecting a steady trend that supports the overall monthly average.”

She noted that the Government is aware that energy consumption is traditionally less during the winter months and there are other variables to consider such as the fuel charge, however, the ERA is having an impact.

The Energy Minister added that it is also worth mentioning that lower electricity bills means more money in the wallets of Bahamians.

She explained that another initiative that the Government implemented to assist Bahamians was the launch of the Merry and Bright – Turn on Your Light holiday reconnection programme.

The Minister said the initiative was launched by Bahamas Power and Light (BPL) in conjunction with the Ministry as over 4,000 households were without electricity.

“Between 1st November 2024 and 31st January 2025, disconnected residential customers paid as little as 10 percent of their outstanding balances to have their electricity turned on.  For the remaining balance, BPL offered flexible payment terms that allow the disconnected customers to repay BPL on favourable terms."

She said, “At the conclusion of the programme, approximately 2,811 households – 2,052 in New Providence and 759 in the Family Islands enrolled in the initiative.  And I am advised that the households are making their payments. This is what opportunity is all about!”

The Minister of Energy and Transport the Hon. JoBeth Coleby-Davis said one of the mechanisms that the Government introduced to assist in reducing the cost of electricity is the implementation of the Equity Rate Adjustment Initiative, better known as the ERA.
“Implemented in July 2024, the ERA has created a more equitable balance in the tariff structure and encourages energy conservation,” the Energy Minister said during her Contribution to the 2025/2026 Budget Debate in the House of Assembly on Monday, June 16, 2025.
She explained that under the ERA, the Government zero rated the base rate for the first 200 kilowatt-hours of monthly residential electricity.
“The aim of this policy decision is to lower the cost of electricity bills for households and ultimately the cost of living for Bahamian families.
“In conducting our assessment of the ERA, we have set a measurement benchmark of $125.00, which is based on an affordability analysis of average regional monthly electricity bills.”
The Minister said between January and May 2025, an average of over 63,000 households across The Bahamas received monthly electricity bills under $125.
“Specifically, 58,933 households were below this threshold in January, 63,058 in February, 64,053 in March, 67,693 in April, and 62,209 in May — reflecting a steady trend that supports the overall monthly average.”
She noted that the Government is aware that energy consumption is traditionally less during the winter months and there are other variables to consider such as the fuel charge, however, the ERA is having an impact.
The Energy Minister added that it is also worth mentioning that lower electricity bills means more money in the wallets of Bahamians.
She explained that another initiative that the Government implemented to assist Bahamians was the launch of the Merry and Bright – Turn on Your Light holiday reconnection programme.
The Minister said the initiative was launched by Bahamas Power and Light (BPL) in conjunction with the Ministry as over 4,000 households were without electricity.
“Between 1st November 2024 and 31st January 2025, disconnected residential customers paid as little as 10 percent of their outstanding balances to have their electricity turned on.  For the remaining balance, BPL offered flexible payment terms that allow the disconnected customers to repay BPL on favourable terms."
She said, “At the conclusion of the programme, approximately 2,811 households – 2,052 in New Providence and 759 in the Family Islands enrolled in the initiative.  And I am advised that the households are making their payments. This is what opportunity is all about!”
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