By SYANN THOMPSON

Tribune Staff Reporter

sthompson@tribunemedia.net

BAHAMAS Power and Light has reminded customers about an upcoming change to bills in 2020, saying that in the midst of this the company is committed to correcting their many challenges.

A statement issued by BPL read: “We are confident in the long-term plans to improve BPL’s operating performance and our service delivery to our customers. However, in the short term, we must address the failures and neglect that have plagued BPL for many years.”

By March 2020 customers will see a new line labelled ‘National Utility Charge’ on their monthly bills.

The power provider said it hopes that the new fee structure that comes along with an increase for customers will help in reducing energy costs in the future.

“By our initial estimates, however most, if not all of any cost increase to consumers will be offset by savings resulting from our new cheaper energy generation within the next year. Meanwhile, this fee will allow BPL to service a bond that restructures about $321 million in debt while allowing us to invest in new and more efficient generation capacity,” the statement read.

In rectifying what BPL is calling ‘legacy issues’, the company said it is already preparing for the high peak seasons. BPL said that they will continue to update customers on their progress and answer any concerns.

BPL's statement also said: "In order to invest in the future and deliver more reliable energy that is less costly over time, BPL must service this debt now to make investments for the future. The summer load shedding was a prime example of what happens when a company fails to maintain existing equipment or invest in new, more efficient generators. Doing nothing will only make things far worse as we have already seen. The best way to restructure the debt while continuing to upgrade our generation capacity and modernise our control systems is through the National Utility Investment Bond.”

The House of Assembly passed the Electricity Rate Reduction Bond Act 2019 last month that allowed BPL to be bailed out by customers paying a rate reduction bond fee in monthly bills.

In November, Works Minister Desmond Bannister told parliament that the government is seeking to raise $650 million dollars for the cash-strapped corporation. “We will safeguard the stability of BPL by refinancing existing legacy debt owed by BEC and BPL to commercial banks of approximately $320 million dollars which falls due in December 2019. This permits the debt to be repaid on more flexible terms over a period of 20 to 30 years as opposed to the current short-term rolling debt,” he said.

Mr Bannister continued: “We will fund critical infrastructure investments of approximately $220 million which will stabilise the electricity system of The Bahamas, expand generation capacity, reduce the cost of fuel, help meet government solar objectives, and improve metering collections.”