Tuesday, October 4, 2022
Prime Minister Philip ‘Brave’ Davis has announced that there will be an increase in the monthly fuel charge from Bahamas Power and Light.
“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,” the Prime Minister explained. “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. I want to note here that we will raise the VAT ceiling from $300 to $400, so going forward, no VAT will be due on any electricity bills under $400, which will take some of the sting out of the 4.3 cent increase for a great many BPL consumers subject to the larger increase.”
Mr Davis said prices have increased everywhere and global inflation hits small island nations particularly hard.
“On top of that, in February, the Russian-Ukrainian war began, disrupting global trade and raising oil and gas prices sharply,” he added.
The Prime Minister said the government has worked to minimise the impact.
“We have worked to minimise the impact in multiple ways: First, those who consume less, and a great many households fall in this category, will see a lower increase – 2 cents instead of 4.3 cents per kilowatt hour,” he said. “Second, the increases are phased in over time, allowing consumers to plan ahead. And third, the VAT ceiling for electricity will now be raised from $300 to $400, so no VAT will be due on bills up to $400.
“And most importantly, these increases are short-term. After implementing price increases in stages, over the next four quarters, BPL calculates that the fuel charge will begin to come down.”