Prime Minister Philip Davis said yesterday the increase in Bahamas Power and Light’s (BPL) fuel charge was the “last resort”.
In March, Davis stepped in to prevent a rise in the fuel charge for electricity consumers and promised to “brainstorm” ways to avoid it altogether.
When asked about his reversal, the prime minister said yesterday, “We reached that point where we’re at the last resort.”
Asked if Bahamians should be concerned about the financial stability of the power company, Davis replied, “Not as long as I’m in charge.”
Minister of Works and Utilities Alfred Sears said that BPL is on the edge of “financial fallout” and action is necessary.
The increased prices come as many Bahamians already struggle to make ends meet as a result of inflation.
Davis acknowledged the concerns of struggling Bahamians.
“I understand the plight but, unfortunately, this is what the facts of life are,” he said.
“The law requires us to pass through the high cost of electricity onto those persons who are users and we’ve been holding off on doing. But we have chosen this time to do it because we think less electricity will be used now. We’re going into the winter months.
“We’re doing so now because we see that the economy is rebounding and we see that more people are at work so they can better afford what is coming upon them.
“But, at the end of the day, it’s a short-term measure and, hopefully, we will be able to reverse this sooner rather than later.”
The projected incremental increases extend into late next year.
The current fuel charge is 10.5 cents per kilowatt hour (kWh). As of October 1, it increased to 12.5 cents per kWh for consumers using less than 800 kWh and 14.8 cents for consumers using more than 800 kWh.
It will increase to 14.5 cents on December 1 for consumers using less than 800 kWh and 19.1 cents for consumers using more than 800 kWh.
The fuel charge will stand at 16.5 cents for usage under 800 kWh and 23.3 cents for usage over 800 kWh from March 1, 2023 to May 21, 2023.
It will peak at 18.5 cents and 27.6 cents from June 1, 2023 to August 31, 2023.
After that, it will start to decline, according to officials.
It will decrease to 25 cents for consumers using more than 800 kWh between September 1, 2023 and November 30, 2023.
It will then drop to 17 cents for usage under 800 kWh and 18 cents for usage over 800 kWh from December 1, 2023 to February 28, 2024.
