Equity Rate Adjustment – About – Bahamas Power and Light Company

Equity Rate Adjustment – About

Equity Rate Adjustment (ERA)

Understanding the New Tariff Rates

What is the ERA?

The Equity Rate Adjustment (ERA) modifies the BPL base tariff and the fuel charge to create a fairer balance and promote energy conservation.

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:

Frequently Asked Questions

All your queries regarding the Equity Rate Adjustment are addressed here. Learn about the motivations behind the changes, their implementation, and how they will impact different customer groups.

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.