BPL bill rise ‘a nightmare’

By NEIL HARTNELL 

Tribune Business Editor 

nhartnell@tribunemedia.net

An Opposition senator last night branded escalating Bahamas Power & Light (BPL) costs “a never-ending nightmare” as homeowners began to receive August bills showing 25-30 percent increases.

Michela Barnett-Ellis, who is understood to be seeking the Free national Movement’s (FNM) Killarney nomination, said in a voice note she had been “shocked” by her latest BPL bill and challenged the state-owned energy monopoly’s previous assertion that energy costs would “level off” by early 2024.

Pointing out that it is now mid-2025, and Bahamian households and businesses are still enduring rising electricity prices “with no explanation and no relief”, she added that BPL’s fuel charge had risen by at least 70 percent from the fuel-hedged 10 cents per kilowatt hour (KWh) that the Davis administration inherited when it took office in September 2021.

“When they took office, the fuel charge was around 10 cents,” Ms Barnett-Ellis blasted. “Today, it’s over 17 cents. That means it’s 70 percent more before your usage and VAT. BPL said prices would level-off by early 2024 but it’s now mid-2025 and the bills are still rising with no explanation and no relief, so where’s the cheaper electricity we were promised because from where I stand this is not a new day; it’s a never-ending nightmare.”

Tribune Business received its BPL bill, for the June-July period and payable in early August, at 1am yesterday morning based on the e-mail. Following the near-doubling of its previous bill, which was paid earlier this month, the August bill has increased by a further 38.4 percent month-on-month or several hundred dollars.

This is close to the all-time high of August 2023, after BPL increased its fuel charge by 163 percent over an eight-month period to recoup under-recovered fuel costs caused by the failure to continue supporting the utility’s existing fuel hedge. The bill is also akin to a second mortgage.

Other contacts spoken to by this newspaper reported similar increases, with one source revealing their latest bill was even higher than August 2023. “Somebody told me people are already complaining about their bills on social media,” they said, speaking on condition of anonymity. “My bill is the highest it’s been since 2019.

“This bill is ridiculous. It’s a high, high bill. Unbelievable. This bill is even worse. It’s 30 percent higher this month than it was last month, and last month was ridiculous. It’s crazy. It’s really unbelievable.” Another source added: “We just got our bill and it’s 25 percent higher come to think about it. The fuel charge seems to be pretty elevated. There’s something really fishy going on there.”

BPL has previously blamed the sudden summer 2025 bill hikes on increased energy consumption and the hot weather. It added that increased load demand has forced it to rely more on rental generation units that operate on automotive diesel oil (ADO) - the most expensive of the fuels that BPL uses.

And, while Ms Barnett-Ellis is correct that BPL’s current fuel charge is 17.4 cents per kilowatt hour for consumption that is less than 800 KWh, it is actually 21.4 cents per KWH for the bill portion above 800 KWh. The latter rate would thus represent a doubling, or around 100 percent increase, from the hedged fuel charge of September 2021.

Following last month’s BPL bill outcry, the Government introduced a taxpayer-funded Summer Energy Rebate to lower BPL’s fuel charge by 1.1 cents per KWh for both portions of the bill - under and over 800 KWh.

The fuel charge below 800 KWh was to be lowered from the 18.5 cents that appeared in Bahamians’ July bills to 17.4 cents, representing a 6 percent discount, while for over 800 KWh it was to be lowered from 22.5 cents to 21.4 cents. While that has been done, it appears to have made little difference for many customers given their increased energy consumption.

The move came after social media lit up in outrage as consumers received their bills due for payment in July. Almost all questioned the sharp month-over-month increases, with posts seen by Tribune Business showing all-in cost increases ranging from 38.6 percent to almost tripling via a 199 percent jump.

Higher BP bills represent a drain on the economy by inflicting higher expenses on Bahamian businesses and households, reducing investment and hiring dollars while also impacting families’ disposable incomes and consumer demand.

The latest bills emerged just as the Government yesterday tabled in the House of Assembly an Order that appears to both give legal effect to BPL’s new base tariff rates that were unveiled in summer 2024 and pave the way to reinstate the fuel hedging that was previously abandoned.

The Electricity (Tariff Rate for Electricity Services) Order 2025 implements the base tariffs set out in BPL’s Equity Rate Adjustment, including the 14.9 percent increase for the first 900,000 KWh consumed by the utility’s largest customers - the likes of hotels and food stores.

This tariff is being increased from 8.7 cents per KWh to 10 cents, while the rate for “all remaining units” is to jump by 45.2 percent - from 6.2 cents per KWh to 9 cents. All other BPL customer classes, including households and commercial, as well as temporary supply, will see their base rates either decrease or remain constant.

The Order also specifies how BPL’s fuel charge is to be calculated, and the items to be included in these sums, such as “upper cylinder lube oil”; fuel additives required by generation engine manufacturers;

foreign exchange and bank fees incurred with fuel purchases; and “relevant and reasonably incurred” expenses associated with purchasing power from renewable and other independent power producers.

Also eligible to be included in the BPL fuel charge are “costs and fees” associated with fuel hedging. The Order also paves the way to segment BPL’s customer base and levy different fuel charges linked to what is termed “equitable distribution”, as well as hold the fuel charge “constant for a period of 12 months in order to provide price stability to the consumer”.

The latter can only be done as part of a fuel hedging strategy, and the Order also provided for the creation of an “over and under recovery account” to monitor any fuel hedging, compare this to global spot market prices and what is charged to BPL customers, and make any adjustments as necessary.

Comments

whatsup says...

Yet, the cost of Crude Oil has come down $10 per barrel in the last six months. I don't understand why businesses are not demanding the cost of gas to go down considering the cost of gas for them to make deliveries and service calls. Why are not workers demanding that Gov decrease the cost of gas for them to drive to and from work every day. No damn need for gas to cost us $5.50 a gallon.

Posted 24 July 2025, 9:32 a.m. Suggest removal

IslandWarrior says...

BPL is not a utility anymore. It is a state-sanctioned shakedown. What landed in Bahamian inboxes this week is not a “summer spike”, it is a systematic transfer of household and business cash flow to cover years of political cowardice, bad fuel policy, and a tariff architecture written to protect the monopoly first and the consumer last.

Here is the cold arithmetic from my new bill:

> Usage: 1,372 kWh for the period.
>
> Base energy charge: $157.21 ( $71.70
> on 201-800 kWh @ 11.95¢ + $85.51 over
> 800 kWh @ 14.95¢).
>
> Fuel charge: $261.61 (800 kWh @ 17.4¢
> + 572 kWh @ 21.4¢).
>
> VAT (10% on the whole lot): $41.88.
>
> Current charges this cycle: $460.70.
>
> Total due with past-due balance:
> $591.38 by August 11.
>
> Effective tariff this month:
> ~33.6¢/kWh on current charges alone;
> ~43.1¢/kWh if you include the past-due
> they’re dragging forward. More than
> 56% of your subtotal (before VAT) is
> fuel. The Government then taxes that
> fuel pass-through.

So, after promising that prices would “level off” by early 2024, we are in mid-2025 paying 70%+ more on the fuel line than the hedged ~10¢/kWh they inherited in September 2021 — and 100% more once you cross 800 kWh. Meanwhile, Government trumpets a 1.1¢ “Summer Energy Rebate” while your bill still jumps 25-40% month-over-month because the structural problem (diesel dependence, abandoned hedge, rental engines burning ADO, and VAT on top of it) is untouched.

The Government just tabled an Order to (1) lock in BPL’s new base tariffs (remember the 14.9% hike on the first 900,000 kWh for the biggest customers) and (2) re-enable fuel hedging—the very tool whose lapse detonated this crisis. They’re also authorizing BPL to stuff into the fuel charge everything from “upper cylinder lube oil” to FX and bank fees, IPP purchase costs, and even the costs and fees of hedging itself. In plain language: we pay for their mistakes coming in, and we pay for their “solutions” going out. That is not regulation; that is organised extraction.

Bahamians should not whisper it:

Bahamian households and businesses are being shot in the back by a Government-owned utility that failed to protect consumers with competent fuel risk management, then taxed the fallout, then congratulated itself for shaving off 1.1¢ while effective bills exploded by 25-40% in a single month. This is not a “never-ending nightmare”; nightmares end when you wake up. This is a policy choice: tax the fuel, abandon the hedge, rent the most expensive engines, bury the true numbers, then lecture the public about consumption and weather. BPL’s fuel line is now a fiscal pipeline, and VAT on top of it is the State dipping twice. Enough.

Posted 24 July 2025, 10:44 a.m. Suggest removal

IslandWarrior says...

What must happen immediately (not in another consultation, not in another press release):

* Zero-rate VAT on electricity up to a defined social floor (e.g., 800 kWh/month) and on all fuel pass-throughs. Stop taxing inefficiency.

* Publish the full hedge book, forward curve assumptions, and the “over/under recovery” account monthly. URCA must compel it.

* Independent forensic audit of BPL’s fuel procurement, rental generation contracts, and hedge unwind/expiry decisions from 2020-2025. Name the losses.

* Cap the percentage of generation allowed on rental ADO units and publish the per-kWh cost of every generation block on a rolling basis.

* Fast-track 150–200 MW of utility-scale solar + storage under transparent PPAs, with publicized levelized cost of energy (LCOE) and take-or-pay terms.

* Real net metering with bankable credits for households and SMEs; end the fiction of “self-generation encouragement” without a tariff that pays.

* Time-of-use tariffs so consumers can actually shift load and see a price signal—otherwise “use less” is just rhetoric.

* Legally bind BPL to a fuel charge stability band for 12 months, backed by a properly governed hedge program (not a political promise).

* Consumer restitution mechanism for provable over-recoveries during periods when BPL mis priced or misapplied the fuel rider.

Until these steps are executed and verified, every press conference about “heat” and “consumption” is an insult. Bahamians are not paying for electricity; they are paying for institutional failure, opaque fuel math, and government take on top of both. Call it what it is: a shakedown. And it ends when we force transparency, strip the tax off the fuel line, rebuild a professional hedge with public oversight, and replace the diesel addiction with real, measured renewables—not promises.

*The bottom line*

At ≈ 34 ¢/kWh, Bahamian households now pay twice the world average, 75 percent more than the U.S., and neck‑and‑neck with Britain’s crisis‑era cap—without Britain’s subsidies, winters, or wage levels. That is not the price of electricity; it is the price of chronic mis‑hedging, diesel addiction, and a tax regime that turns every kWh into a revenue stream for the Treasury.

In plain language: BPL has manoeuvred The Bahamas into an elite club no country wants to join—one defined by punitive power costs that strangle disposable income and choke investment. Until fuel risk is professionally hedged, VAT stripped off the fuel rider, and large‑scale renewables fast‑tracked, every monthly bill will keep reminding Bahamians where they rank on the global pain index.

Posted 24 July 2025, 10:57 a.m. Suggest removal

bahamianson says...

What about the bill apparently decreased the last two past months? All these party’s do is suck up the bill for a few months and increase it for the other months. The government gaslights the public. It does not solve a problem it makes it look like it is solving a problem. Smoke and mirrors.

Posted 24 July 2025, 11 a.m. Suggest removal

JokeyJack says...

PLP & FNM don't need to solve any problems for people who vote only for them or don't vote. They have a monopoly on votes.
A monopoly on votes.

Posted 24 July 2025, 4:19 p.m. Suggest removal

TalRussell says...

Twas **if to believe the eyes** of evidence captured on Vehicle's Dash Cam camera...shows a **decent amount** of movement going in and out the Mackey Street headquarters of the RedShirts'Movement. -- Most captured footage is of what looks to be clear movement of a **looking dejected, rejected** talk show host Howard Grant's **comings' and goings'** ---Yes?-

Posted 24 July 2025, 1:37 p.m. Suggest removal

JokeyJack says...

FNM know they will win. Bahamians only know two Parties and they are "the other one."
Stay tuned for more high prices ... on everything.

Posted 24 July 2025, 4:23 p.m. Suggest removal

ExposedU2C says...

All of you posting here choose, for whatever reason, to ignore the real problem.

BPL is no longer controlled by government. It is now controlled by a cabal of corrupt marauders led by the sinister and deceitful likes of the greedy Snake and Tony Ferguson who are laughing all the way to the bank.

Yup, our most corrupt and incompetent PM Davis foolishly turned control of most of our nation's energy sector over to the insatiably greedy Snake of all people. Snake and his cabal of marauders will squeeze every penny they can out of electricity consumers for years to come and, when they can no longer do so, they will simply dump BPL back on the government..

Posted 24 July 2025, 5:02 p.m. Suggest removal

truetruebahamian says...

Absolutely correct, connected thugs who operate under government approval.

Posted 25 July 2025, 8:11 a.m. Suggest removal

TalRussell says...

Left in the wake of handling general election choices. --- The movement is "devoid of "official opposition" leadership" status. -- Time **unswear** before the King's governor-general. -- Yes?

Posted 24 July 2025, 5:09 p.m. Suggest removal

Porcupine says...

The question shouldn't be who will win the next election.
It should be how we can make sure that these PLP bozos go to jail for the crimes they have committed.

Posted 24 July 2025, 6:37 p.m. Suggest removal

birdiestrachan says...

I wondered if the rates went up or the usage.went up
Many missing from the looney farm. For sure

Posted 25 July 2025, 12:13 p.m. Suggest removal

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