FREEEPORT, Grand Bahama, August 8, 2024 – The Grand Bahama Port Authority (GBPA) regulatory team today advised the public that it has not approved the Grand Bahama Power Company’s (GBPC) requested rate increase, noting that the “request is currently under review.”
“GBPA acknowledges that these requests will have varying impacts on each customer class. Therefore, we will conduct a comprehensive review as well as engage with key stakeholders during a 45-day consultation period, to thoroughly understand the proposed impact before a final decision is made on December 1. Details of the application will be made available to the public via our website and local media on or before September 15,” the GBPA said in a press statement,
The statement added, “GBPA is also cognizant of the fact that this application comes in the wake of recent challenges faced by GBPC, including issues with reliability and efficiency. As such GBPA is committed to ensuring a fair and transparent review process with our primary focus being on a comprehensive evaluation of the proposed rate increase considering the current service performance to ensure that consumers receive the satisfactory reliability that they deserve.
“GBPA is aware of the significant impacts that the cost of energy has on our residents, businesses, and the broader economy. We understand that energy expenses are a critical factor in daily living and commercial operations. As such, we are committed to working diligently to ensure that energy remains affordable and accessible for all. Our goal is to support the economic vitality of Grand Bahama while maintaining the highest standards of service and reliability.”
Continuing, the statement emphasized, “As is well known, the GBPA has extensive rights under the Hawksbill Creek Agreement (HCA) to regulate the Port Area. GBPA maintains that by virtue of the powers vested in it by the HCA it has always been and still is the sole exclusive licensor and regulator for all utilities in the Port Area. It does so in relation to electrical supply with GBPC. The 2015 Electricity Act which has now been replaced with the 2024 Electricity Act which purported to give URCA the legal right to license and oversee energy providers in the entire Bahamas, including the Port Area, are inconsistent, and conflict with the rights and privileges vested in GBPA under the HCA. There is currently an action in the Supreme Court regarding the rights of the GBPA under the HCA.
“The impact of any rate adjustments will be carefully evaluated to ensure they are fair and justifiable. Key elements of the review process will include, assessing the utility provider’s rate base and operational costs to determine the necessity and extent of the proposed rate adjustment; analyzing how the proposed rate changes will affect consumers, particularly vulnerable populations, and identifying any potential mitigative measures. We will ensure that we consider diverse perspectives, and that the public’s voice is heard. Additionally, we will review compliance with established best practices and regulations to ensure the proposed adjustments align with the regulatory framework and ethical standards.”
