The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE Grand Bahama Port Authority (GBPA) has completed its initial review of the Grand Bahama Power Company’s (GBPC) controversial rate proposal and will consider sanctioning the increase despite the ongoing debate surrounding its regulatory authority.

The GBPA’s Regulatory Committee announced the launch of a 45-day public consultation to gather feedback from stakeholders on GBPC’s application. 

The application, submitted on August 1, proposes a rate plan for 2025 to 2027, which includes a base rate hike of 6.32 percent for all customers.

The plan also includes a fuel charge reduction and stabilisation and an adjustment to the storm recovery and stabilisation associated with rebuilding after Hurricane Dorian, extending until 2026.

In recent weeks, residents and political organisations voiced strong opposition to the proposed rate hike, expressing frustration over frequent outages and power surges that have damaged household appliances. There have also been demands for transparency regarding the storm recovery and stabilisation charge on power bills.

Many residents argue that the GBPA, as the regulator of utilities in the Port Area, should not regulate the power company’s rates, citing an alleged conflict of interest.

The Davis administration has also said that the Utilities Regulation and Competition Authority is the sole regulator of utilities throughout the country.

The port authority said the consultation period will end on November 4, 2024. After that, the GBPA’s Regulatory Committee will review the feedback before finalising the rate application on December 2, 2024.

“This review will fully consider all information and feedback presented to determine what is reasonable for customers at this time before issuing a final decision on the rate application on December 2, 2024,” the GBPA said in a statement yesterday.

In its filing, GBPC proposed a $8.4m in investments over the next three years to improve system reliability and efficiency, according to the GBPA. This includes upgrades to transmission and distribution infrastructure, costing $3m, and $4.5m in battery storage investments to improve energy capture from solar systems.

The GBPC also outlined the impact of the rate changes on different customer groups. The filing states that for residential, general service large, and large industrial customers, all-in costs will remain relatively unchanged in the first year, with less than a one percent increase. The all-in cost is projected to reach a maximum increase of four percent in 2026, before levelling off at a 2.5 percent increase in 2027.