The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Utilities Regulation and Competition Authority (URCA) acceded to Bahamas Power and Light’s (BPL) request that its annual fees to the regulator be based on turnover - with the exclusion of fuel charge - while dismissing the electricity provider’s request for the licence fee to take the place of the annual business licence fee.

URCA noted in its Statement of Results and Final Determination on Public Electricity Supplier Licence that a fee change was beyond its “regulatory power or statutory remit”.

“URCA does not have the regulatory power or statutory remit to accede to the replacement of the Business Licence fee with the URCA licence fee,” the regulator said. “URCA considers that the two are dissimilar in nature and purpose to the extent that the URCA licence fee is specific for the functioning of URCA in accordance with the Electricity Act, 2015, and set out (and explained) in URCA’s Fee Schedule, as published annually.

“The Business Licence fee is a tax imposed by the Government of the Bahamas on all businesses carrying on business in the Bahamas for public good and interest. URCA accepts BPL’s proposal that annual fees should be based on turnover, with the exclusion of fuel charge, and will amend the Licence accordingly,” said the regulator.

URCA announced on Monday that it had awarded the first Public Electricity Supplier Licence to BPL, authorising the company to engage in the generation, transmission, distribution and supply of electricity in the Bahamas. On January 28, 2016, the Electricity Act along with a compendium of related legislation came into effect, thereby establishing the Authority as the regulator for the electricity sector in the Bahamas. As regulator, URCA is authorised to grant a licence with terms and conditions consistent with the National Energy and Electricity Sector policies, as it considers appropriate.

As part of its licence, BPL must “provide an adequate, safe and efficient service based on industry standards”, and “at approved rates so as to meet the electricity demand and to contribute to national economic development”. BPL must also, “to the extent that it is technically feasible and economically reasonable, employ modern and leading edge technological solutions to secure optimal efficiencies in its operations”.

As its licence states: “The Licensee shall take all reasonable steps to prevent and resolve unplanned interruptions to the provision of its Licensed Business. Subject to technical and economic constraints, the Licensee shall take all reasonably practicable steps in accordance with prudent utility practice to maintain, to the greatest extent possible, the proper and effective functioning of its Generating Facility and Licensed Business provided by it at all times.”