The Tribune

By LYNAIRE MUNNINGS  

Tribune Staff Reporter  

lmunnings@tribunemedia.net

PRIME Minister Philip “Brave” Davis recently criticized the Grand Bahama Power Company’s (GBPC) request for a 6.3 percent increase in base electricity rates, calling it unreasonable and lacking justification.

In a recent press statement, the Grand Bahama Port Authority, said it has not yet approved GBPC’s rate increase request but will review the matter and engage with stakeholders during a 45-day consultation period. The authority noted it would make a decision on December 1 as the “sole licensor and regulator” for utilities in the Port Area under the Hawksbill Creek Agreement (HCA).

The matter has set the stage for a clash with the central government as it purportedly conflicts with the Utilities Regulation and Competition Authority’s (URCA) regulations. In July, the Davis administration amended the Electricity Act to clarify that URCA is responsible for regulating utilities nationwide. 

The GBPC claims the rate adjustment could result in a "small all-in" decrease for most customers. The Davis administration has firmly rejected the proposal, asserting that it violates the law. Meanwhile, the port authority indicated that related conflicts are currently being addressed in the Supreme Court. 

Mr. Davis, speaking on the sidelines of a recent event, said: “We do think this is on the face of it rather unreasonable. I don’t know what case they are making for it, but from what I can say, there is no basis for any further increases in electricity.

Mr Davis added: "In fact, if anyone notes what is happening in New Providence, electricity rates are going down. Consumption is up, but rates are down.”

The Ministry of Energy and Transport has also strongly objected to the proposal, arguing that it has not undergone proper regulatory review.

The ministry is urging URCA to use its authority under the Electricity Act to block the proposed rate increase by the Grand Bahama Power Company.