The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A former Cabinet Minister has called for a set retail price at which Bahamas Power & Light (BPL) will compensate consumers under its small-scale renewable generation proposal.

Phenton Neymour, a former minister for the environment under the Ingraham administration, told Tribune Business: “There are a number of initiatives that need to be made very clear.

“The first thing that is not made clear is at what retail price BPL will purchase energy generated by consumers for. For instance, we are paying a price for BPL’s service, but when one feeds back into the grid, what will that price be, because that price determines the profitability of one using a renewable source or the benefits. It affects significantly the benefits to the customer.”

As previously reported by Tribune Business, Bahamas Power & Light (BPL) will initially be allowed to “undervalue” the price it pays to purchase renewable energy generated by its residential customers.

The Utilities Regulation and Competition Authority (URCA), in unveiling the public consultation on BPL’s plans to facilitate small-scale renewable generation, said the utility monopoly is proposing to purchase power via a ‘net billing’ arrangement, although renewable energy providers have expressed a preference for net metering.

Consumers will be allowed to sell excess renewable energy to the BPL grid, but at a price that is lower than the utility’s retail tariff rates. While agreeing that net billing was “preferable” to the other option, net metering, URCA said the standard practice is for energy utilities to base the price they pay for renewable energy on their ‘avoided cost of generation’.

URCA proposes to commence a review of BPL’s avoided cost of generation, and once completed (including necessary consultation), the regulator will determine the net billing tariff based on the outcome of that review. URCA said it planned to complete its review by November 2017, which is when BPL is due to launch phase two of its small-scale generation programme.

Mr Neymour, though, argued that the retail price should be set upon initiation of the programme - not in November 2017.

He said: “That is one thing that needs to be determined. I have always promoted the fact that individuals should have the right to be tied to BEC’s grid, and get a fee for feeding back into the system.

“I have always stated that for private residents and small energy producers to begin to produce energy through alternative sources would be a benefit to BPL in the short term.”