Prime Minister Philip Davis announced today that Bahamas Power and Light will increase its monthly fuel charge.
Bahamians can expect to see the increase reflected on their November bill, officials said.
“For a large majority of BPL customers, who consume less than 800 kilowatt hours (kWh), the fuel charge is increasing by two cents per kWh, which will result in an increase this quarter of less than $20 per month,” he said during a press conference at the Office of the Prime Minister.
“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.
“BPL will provide additional details of these changes, which phase in over time. The bottom line is that monthly bills will go up over the next several quarters, before they begin to come down, in 12 to 18 months,” Davis added.
In a press released BPL outlined when the increases will take effect: October 1 to November 30, 2022; December 1, 2022 to February 28, 2023; March 1 to May 31, 2023; June 1 to August 31, 2023; and September 1 to November 30, 2023.
During each phase of the implementation, customers can expect an increase of two cents per kWh up to 800 kWh and 4.3 cents for all units over 800 kWh, BPL said.
The prime minister explained that the government made the decision to delay the increase given the hardship that Bahamians were facing for the last few years.
He said during the interim period, the government provided support to BPL.
“Now that we are past summer, and moving into a period of lower electricity usage, the government has approved BPL’s request for this phased-in increase,” he said adding that it is a short term measure.
“For too long, high energy costs have hurt households and businesses alike,” he said.
“I know the short-term increases announced today are very unwelcome news. I wanted to be the one to tell you. And I ask you to hang in there just a little longer. Our country is finally on a path to a very different energy future.”
