Equity Rate Adjustment (ERA)
Understanding the New Tariff Rates
What you need to know
These changes only impact Bahamas Power and Light Company Ltd. (BPL) customers and will not affect customers of other electricity providers.
Who is affected?
The changes will have different impacts on Residential, Commercial, and General Service Customers, each benefiting or adjusting in different ways.
Benefits of the Equity Rate Adjustment (ERA)
Discover how the ERA program and fuel charge adjustments can help you save on your energy bills.
Significant Savings
The fuel charge is 2.5 cents lower than the average for the first 800 kWh each month, leading to substantial savings for low-usage customers.
Transparency in Savings
Customers can easily see their actual savings due to the ERA program on their electricity bills, promoting the benefits of the program.
Encouraging Conservation
Lower rates for the first 800 kWh encourage customers to conserve energy, benefiting the environment and reducing overall energy demand.
Social Equity
The ERA creates a fairer billing structure, reducing subsidies to large General Service users and supporting vulnerable customers.
Economic Impact
Lowering electricity bills for lower-income households boosts the local economy through increased consumption of other goods and services.
Long-term Efficiency
Planned efficiency enhancements will reduce fuel costs and benefit all customers over the long term.
ERA Rates
Explore the new, detailed tariff rates structured under ERA, aimed at better managing your energy expenses:
Why is BPL’s tariff being adjusted?
To create a more equitable balance to the current tariff structure (those who use less, pay less), provide a social safety net for BPL’s most vulnerable customers, and encourage energy conservation.
What is the new tariff rate?
| Kilowatt Hour Usage (kWh) | Current (cents) | Revised (cents) |
|---|---|---|
Commercial (including Churches & Arenas) |
||
| 0-800 | 15.00 | 14.50 |
| >800 | 15.00 | 14.50 |
General Service (Large Companies) |
||
| 0>800 | 8.70 | 10.00 |
| 800-900,000 | 8.70 | 10.00 |
| >900,000 | 6.20 | 9.00 |
Residential |
||
| 0>200 | 10.95 | 0.00 |
| 201>800 | 11.95 | 11.95 |
| >800 | 14.95 | 14.95 |
Temporary Supply |
||
| 0-800 | 16.38 | 15.00 |
| >800 | 16.38 | 15.00 |
How will the fuel charge be calculated?
The total amount BPL spends on fuel per billing period is divided among the total units of electricity consumed during that period. The first 800 units consumed will be billed at 2.5 cents less than the calculated average, while consumption above 800 kWh will be calculated at 1.5 cents above the average.
How will this impact Value Added Tax on electricity?
BPL only charges VAT on all electricity bills exceeding $400. The less paid for electricity bills, the less paid in VAT.
Does BPL have regulatory approval for the rate adjustment?
The most recent amendment to the Electricity Act, 2024 gives the Minister responsible for BPL authority to adjust the tariff with consultation with the regulator, URCA.
Resources
For more comprehensive insights: