By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

Bahamas Power & Light (BPL) yesterday responded to criticism over the rise in energy costs reported by a large business that it declined to name.

In a statement, the state-owned utility argued that it is normal for consumers to see increased bills during the peak summer season and large retailers can sustain higher consumption due to lowering the temperature on coolers and air conditioners.

This, BPL said, will leads to higher bills, and it suggested that merchants use energy efficient appliances and ensure all equipment is serviced to reduce electricity consumption and increase efficiency.

“It is common to see seasonal increases in electricity consumption during the summer months, particularly for commercial operations that rely heavily on air conditioning and refrigeration. Even when business hours remain the same, these systems often operate for longer periods and with greater intensity to maintain set temperatures, which can lead to higher energy usage. This higher consumption directly results in higher billings,” said BPL.

“BPL wishes to remind and encourage its customers to employ energy efficient equipment and to ensure that their equipment is properly maintained and serviced - particularly going into the summer months-  to reduce consumption and maximise efficiency as much as possible. This may include activity such as cleaning of refrigeration coils and ensuring proper airflow for such equipment.”

BPL maintained its base rate has not changed in recent months, and the increase in June’s bills was due to “fluctuations in global fuel market prices” which were passed on to consumers via the fuel charge.

“It is important to note that BPL’s base rates did not change over the past few months. In fact, the most recent change to BPL’s base rates was as a result of the implementation of the Equity Rate Adjustment programme in July 2024 which saw the rates lowered for residential and commercial customers, and for those customers on temporary supply,” said BPL.

“BPL’s fuel charge in June reflected an upward adjustment of $0.017 per unit due to fluctuations in global fuel market prices, specifically the cost of diesel used for electricity generation. This charge is reviewed monthly and passed directly to consumers without any markup.”

Last week, Super Value’s president, Debra Symonette said the supermarket group’s overall light bill increased by 29.3 percent month-on-month and costs at some locations doubled.

She said the 13-store chain will not increase consumer prices despite sustaining a $74,000 rise in energy costs following the unexpected and unwelcome increase in Bahamas Power & Light (BPL) bills that is hitting the private sector as well as residential consumers.

While Super Value’s business-wide solar power roll-out has enabled it to contain the impact, she added that such sudden and significant cost hikes worsen the effects of government-imposed price controls that restrict the margins food stores earn and result in some produce being sold at a loss.

“We went over the bills yesterday actually, and we are experiencing a significant increase,” Ms Symonette told this newspaper. “When we calculated, we had an increase of 29 percent overall. Certain stores were up.

“Our warehouse was up like 165 percent, a certain portion of it - there ate two sections to it. Our office went up significantly, 92.7 percent, but the average overall increase was 29.3 percent. In terms of dollars we’re paying $74,000 more. Just think: We have solar at all of the locations now, as well as the warehouse and the office. Imagine the people who don’t have solar.”

BPL, however, said its records indicated the cause for the bill increase was due to the company’s electricity usage and the fuel charge increase.

“While we understand the particular customer’s concerns, our records indicate that the primary cause for the increase in their bill was a significant increase in the entity’s usage of electricity compounded with the fuel charge increase,” said BPL.

“Our customer service team is actively communicating with this and other customers to ensure that any concerns are addressed, and that any questions regarding billings are resolved with direct engagement and transparency.”