'Poorest pay the most for electric’

Minister talks of more equitable rates - but no details on BPL plans

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

ENERGY and Transport Minister JoBeth Coleby-Davis suggested that Bahamas Power and Light’s tariff rates could be made more equitable, saying the “least able to pay” are currently “paying more than large businesses.”

She noted that BPL’s base tariff has not changed since 2010 and that a review of the power company’s rates is underway to determine effective prices and classifications.

She did not give insight into the administration’s reported plan to separate BPL’s generation, transmission and distribution elements through partnerships with private companies during yesterday’s House of Assembly debate on the Electricity Bill 2024 and Natural Gas Bill 2024.

The quick release and passage of the major bills confirmed the administration is pursuing significant plans.

Mrs Coleby-Davis said the country has grown since BPL’s tariff rates were last adjusted.

“With this growth comes an increase in demand, and at all times, BPL must find means and ways to provide access to electricity, with annual forecasted demand growth at a steady three to five per cent annually,” she said. “There is an urgent need for a tariff review and adjustments to ensure we are fairly distributing rates, that they are more flat and equitable.”

She said existing BPL rates will be maintained for the next three years while the review is ongoing.

She said if BPL seeks to adjust its rates before the end of the three years, it must make its case to the Utilities Regulation & Competition Authority (URCA). A section of the Electricity Bill noted that BPL and other electricity providers can charge different tariffs and prices to different groups of customers for a “transition period” of three years without approval from URCA. The provision prompted concern among some.

Yesterday, the administration amended that provision to “ensure that URCA’s continued role in approving tariff changes under section 38(8) remains steadfast and unaltered,” Mrs Coleby- Davis said, adding: “Some have said that URCA is being cut out as regulator, particularly regarding the approval of tariffs. This is not the case.”

“Previously, URCA’s role in regulating tariffs under the 2015 Electricity Act was mostly limited to BPL and Grand Bahama Power Company, though the role of URCA regulating GBPC became subject to legal dispute.”

“The scope of regulation regarding fuel charges was unclear, leading to ambiguities in oversight. The new bill eliminates these uncertainties by explicitly stating that URCA regulates all rates and scales of charges for all licensees.”

She said the bill allows URCA to set the guide- lines for how tariffs are calculated to ensure a more standardised and transparent approach to pricing electricity.

She said the enhancement of URCA’s authority includes approving all major renewable energy projects, calling this “significant.”

The Natural Gas Bill will also expand URCA’s oversight to include the natural gas sector, she added.

“This is particularly relevant as liquified natural gas (LNG) is likely to become a significant fuel source for electricity generation,” she said. “URCA’s oversight in this area could lead to more efficient and potentially lower-cost electricity production, benefiting the entire energy sector.”

She said the government’s plans to reform BPL demonstrate its commitment to energy transformation.

She also insisted that BPL is not for sale and that there will be no layoffs or union- busting tactics.

Opposition MPs did not support the passage of the bills, saying they were rushed through Parliament.

East Grand Bahama MP Kwasi Thompson criticised the Davis administration for not widely consulting the public on the bills.

“The government is attempting to change the law on regulating electricity and introduce the law regulating natural gas without first telling the public what is their plan or strategy,” he said. “The public is left to guess what the government has in store. We cannot support the changes in the law without knowing what is the plan and who are the players. We will not blindly follow this government down a black hole.”

Former Prime Minister Dr Hubert Minnis said the passage of the Electricity Bill would be “the biggest hoax that was ever perpetuated on the Bahamian people”.

He called for further consultation regarding a section of the bill that allows BPL to transfer assets to subsidiaries created through joint ventures. He said the bill requires Bahamians “only partially own” subsidiaries.

“To add insult to injury, BPL will be allowed to transfer their assets to these companies, so the equipment and the land that the Bahamian people now own will be transferred to private companies,” he said.

National Security Minister Wayne Munroe later countered that a provision in the Natural Gas Bill calls for Bahamian ownership.

Comments

bahamianson says...

The poorest are humans just like the richest. What iy boils down to is sacrifice , discipline, and making better decisions. Also, the poorest buy gucci, a new weave every month, new nails every month, new bikinis to go to church every month, new eyelashes every month, new handbags every month, large money pendants, exp3nsive rims, $200 on alcohol and cigars every month. Stop talking fooñishness. The "poorest people" in the country are the ones spending the most on nonessensials. The ones whom think about how to save a.dollar are the ones whom have a dollar. So, I guess the dumbest students are the ones who cant get a C on national exams. So, it is the smart students fault because the dumbest students do not have priorities. Is this the same minister whom could not pronounce a number?

Posted 2 May 2024, 8:40 a.m. Suggest removal

moncurcool says...

So how the hell will this bill help the poorest ay less? Will they charge poor people less per Kwh? So they will be adjusting each persons bill separately?

This is one of the most ridiculous things I have heard from these talking heads in cabinet. Makes no sense.

How about telling people not to waste electricity? And turn off things when not in use?

Posted 2 May 2024, 8:57 a.m. Suggest removal

Sickened says...

This woman is truly out-to-lunch. Why on earth do the PLP's let words come out of her mouth. Such an embarrassment.
All she does is contribute confusion.

Posted 2 May 2024, 9:10 a.m. Suggest removal

mandela says...

Well, Dr. Minnis atleast they aren't sitting at a table as prime minister and allowing a billion dollar forgery to be perpetrated in plain sight.

Posted 2 May 2024, 9:40 a.m. Suggest removal

ExposedU2C says...

**CAN YOU JUST IMAGINE HER AND OTHERS LIKE HER PASSING LEGISLATION THAT WILL ALLOW THEM TO DETERMINE WHICH CUSTOMERS CAN AND CANNOT AFFORD TO PAY FOR THE ELECTRICITY THEY CONSUME, WITH THE GOVERNMENT DESIGNATED WEALTHIER HAVING TO PAY MUCH HIGHER ELECTRICITY COSTS FOR THE PURPOSE OF SUBSIDIZING THE MUCH LOWER ELECTRICITY COSTS THAT WOULD BE BILLED TO THOSE DESIGNATED LESS WEALTHY !!!!!!!**

Meanwhile the foreign owned hotels, resorts and other developments will continue to get their generous electrical power concessions and government departments, agencies and SOE's will remain BPL's biggest delinquent debtors, to the tune of mega millions of dollars.

No sane Bahamian should ever vote for any PLP party candidate ever again. The party is no longer progressive ........ it is now down right communist!

And why doesn't corrupt Davis himself not forthrightly address what he is proposing and supporting here??!! He shamelessly let's others carry all of his bad water.

Posted 2 May 2024, 10:01 a.m. Suggest removal

moncurcool says...

Davis had the next ridiculously insane comment that this act will reduce the cost of electricity. Imagine him making such a comment and providing no proof whatsoever to back up how the legislation will do that?

Posted 2 May 2024, 11:24 a.m. Suggest removal

ohdrap4 says...

They doing that in California, households declaring more than 200,000 for income tax will pay more for electricity .

But it escapes her that the poorest pay the most VAT too.

Posted 2 May 2024, 2:21 p.m. Suggest removal

ExposedU2C says...

Communist California has the highest electrical rates in the U.S.A. and is desperately seeking to find a way to reduce electrical rates across the board for all California.

California legislators have been back pedaling on the idea of income as opposed to usage based electricity rates ever since the ridiculous idea was introduced back in the summer of 2022.

Meanwhile Californians and California businesses continue to flee that state in droves for much less costly and much more business friendly states like Texas, Arizona and Florida. California is the first state to have been conquered by the ChiComs for all intents and purposes.

Posted 2 May 2024, 4:59 p.m. Suggest removal

The_Oracle says...

They know exactly what they're doing and who for. Contracts already signed, LNG locked in by a Bahamian for sure.
However, 1/2 a billion legacy debt and at least 2bn needed for infrastructure replacement and improvement, leaves little space for profit, unless higher rates coming!
Solar can reduce rates after about 10 years.....you still have your initial costs to recoup.
I also question putting URCA in control of off grid solar. by definition it is outside of their reasonable scope. The Canadian Electrical code (the one we use) lays out the technical aspects/requirements of Solar and electrical installation. So URCA can only be a political tool.

Posted 2 May 2024, 11:41 a.m. Suggest removal

TalRussell says...

I suggest that such a voice as energy Minister JoBeth Coleby-Davis, could've better used her platform to speak-out in-favor or opposed to **[social control]** over the pocketbooks of the colony's poorest of poor. --- Also, the Comrade Sister's, stance as to being for or opposed to the criminalizing of martial rape, and hangin'. --- And, is she all for the on time filings and enforcement of members of Parliament financial disclosures. --- Yes?

Posted 2 May 2024, 3:56 p.m. Suggest removal

sheeprunner12 says...

This Minister of Energy while in private practice worked for BPC ....... Foreign oil company.

She has NO loyalty to or concern for poor Bahamians.

She treats poor Bahamians with contempt. She cannot be a real Bahamian.🧐🧐

Posted 2 May 2024, 8:54 p.m. Suggest removal

The_Oracle says...

Irritating when they cannot state clearly what they mean: they he poorest do not pay the most for their power bills, they do probably pay a disproportionately higher amount of their income for power. Apparently English isn’t our strong suit.
A sliding rate based on income is as rediculous as turning on power pre-election with huge outstanding balances remaining unpaid

Posted 3 May 2024, 3:38 p.m. Suggest removal

Socrates says...

If the same people who put BPL in this mess in the first place will still own it, how does splitting it up change anything? Their decisions and directives (GoB have it where it is now, another failed socialist experiment.

Posted 4 May 2024, 7:51 a.m. Suggest removal

ExposedU2C says...

You can just hear the Snake rattling and hissing in the background waiting to strike the Bahamian people once corrupt PM Davis has paved the way legislatively for him to do so.

Posted 5 May 2024, 1:51 p.m. Suggest removal

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