By LYNAIRE MUNNINGS 

Tribune Staff Reporter 

lmunnings@tribunemedia.net

THE average Bahamas Power & Light residential customer will save about $460 over a year under the government’s equity rate adjustment, according to Energy Minister Jobeth Coleby-Davis.

The rate adjustments are part of the Davis administration’s energy reform plan and will take effect on July 1.

Under the plan, residents will pay nothing on the first 200kWh they use per month, as the current 10.95 cents they pay will be eliminated, resulting in a monthly savings of $21.90.

For the fuel charge, 2.5 cents will be eliminated on the tariff for the first 800kWh.

“Combining the drop in the residential tariff along with the change to fuel charges will have a lasting effect on the bills of consumers,” Ms Coleby-Davis said during her contribution to the budget debate yesterday in the House of Assembly.

 “Example one: The average residential bill is 655kWh, and they will save about $460 over a year with ERA.”

 “Example two: If your residential bill is more modest at 200kWh, so it doesn’t go over $200 at all for the month –– we have plenty of those, Madam Speaker –– then you will save $323 in a year with ERA. As your bill will be much lower than the first example, this is a relatively larger saving. This is relief, Madam Speaker, and is much needed for our marginalized population.”

 “Example three: If your electricity bill is 900kWh, you’ll still have a lower bill because you’ve had a savings on the first 800kWh, both from the base rate at zero and from the minus 2.5 cents. So, if you have 800, you would naturally pay on your full 800. Now you start your payment from 201, so you are still getting to capture the savings at that category.” 

 She added: “Fifty-eight per cent of residential consumers always consume less than 800 kWh.

 “Fifty-six per cent of regular commercial consumers, not on the general service, always consume less than 800 kWh. 

 “Sixty-nine per cent of the energy is consumed by residential consumers in the first two bands. This means that, while 42 per cent of consumers sometimes consume above 800 units, they seldom go way above.” 

 The new ERA rates will be in effect until the comprehensive tariff review is completed and approved by the government and URCA.

 Mrs Coleby-Davis said energy costs should decrease over time due to efficiency upgrades at BPL, including installing a new HFO boiler at Clifton Pier and two new 30MW LNG burning units.