Report: BPL rates some of the lowest in the region

Bahamas Power and Light (BPL) is among the least expensive power utilities in the region, according to a new Caribbean Electric Utility Services Corporation (CARILEC) Electricity Tariff Report.

BPL’s charges are compared with 16 other utilities around the region, including the Grand Bahama Power Company.

“The typical electricity bills are indicative of the electricity tariffs across the key classes of electricity consumers in the wider Caribbean region,” CARILEC states in the report.

“The service classifications (residential, commercial, industrial and other) of Caribbean electricity consumers are determined by each utility and are based on various criteria such as the demand levels, distribution voltage levels, rate schedules, accounting methods, end-use applications and other social and economic characteristics.

“The tariff structure/components (the number and nature of the charges applicable to customers) for each class of service differ somewhat across island states.

“Amid some significant and wide-ranging challenges, Caribbean electric utilities have been exploring and implementing strategies to enable the fulfillment of their responsibility to provide electricity to the Caribbean people in a safe, sustainable, reliable and cost-effective manner.”

BPL implemented fuel hedging last year that led to a reduction in Bahamians’ average electricity costs, though the company continues to pursue a rate reduction bond that could lead to increased prices.

With regard to commercial customers, CARILEC has found that BPL is the third cheapest of the 16 utilities studied.

BPL announced in a statement on Wednesday that the fuel charge for its customers will remain at about 10.5 cents per for another year.

“This new low fuel charge was first secured in July 2020, when BPL executed the first ever fuel hedge transaction in the company’s history,” BPL’s statement noted.

“On July 9, 2020 BPL executed its first ever fuel hedge, which set the fuel charge at about 10.5 c/kWh from July 2020 through June 2022, subject to review after 12 months.”

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source https://thenassauguardian.com/report-bpl-rates-some-of-the-lowest-in-the-region/