The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

More than 17,000 Grand Bahama households and 1,500 small and medium-sized businesses are set to benefit from lower electricity costs following reforms to the Electricity Act

Speaking during her contribution to the 2026-2027 Budget debate, Energy Minister Jobeth Coleby-Davis said electricity bill reductions will begin appearing on Grand Bahama Power Company bills issued this week as a result of the Government's efforts to bring the island's utility sector under the same regulatory framework as the rest of The Bahamas.

"The uneven cost of electricity was also one of the reasons the Davis administration amended the Electricity Act and made it clear that electricity regulation, including pricing, must fall within a national statutory framework and under URCA, the independent regulator," she said.

"By acquiring Grand Bahama Power Company, Freeport, Madam Speaker, is for the first time being brought in line with the rest of the country on electricity oversight and pricing. For Grand Bahama's more than 17,000 households and over 1,500 small and medium-sized businesses, this is significant."

She said customers will begin seeing the impact of the changes on bills issued June 11.

"The new bills will reflect the elimination of the base rate for the first 200 kilowatt hours of electricity, fuel charge tiers aligned to consumption tiers, and the elimination of the Storm Recovery Charge," said Mrs Coleby-Davis.

She argued that the changes demonstrate that promised relief for Grand Bahama electricity consumers has already arrived.

"As I highlight these changes, I wish to point out that a residential consumer on Grand Bahama will move from paying 22 cents for the 351 to 800 kilowatt-hour band to 11 cents.

"A commercial consumer will move from paying 18 cents for the 20,000 to 100,000 kilowatt-hour band to 14 cents.

"I point out these shifts because I want to demonstrate clearly that relief is not on the way in Grand Bahama. Relief is here."

In a statement, Grand Bahama Power Company said a recently approved Equity Rate Adjustment will deliver substantial reductions in electricity costs for residential customers beginning with the June billing cycle, which reflects electricity consumed during May and early June.

The utility said residential customers are expected to see monthly bills reduced by at least 35 percent, while lower-consuming households could realize even greater savings. Illustrative examples provided by the company show customers using 200 kilowatt hours per month seeing bills fall from $78 to $40, a reduction of almost 49 percent.

GB Power also said nearly 90 percent of residential customers are projected to fall within the VAT-free category under the revised structure, eliminating VAT charges on their monthly electricity bills.

The company said every residential customer will benefit from the changes, with the first 200 kilowatt hours of consumption carrying no base tariff. Approximately one-quarter of residential customers consume 200 kilowatt hours or less each month, allowing them to benefit from the zero-base-rate threshold while paying only fuel charges, the minimum monthly charge and other approved fees.

Among the changes approved under the new tariff structure are the elimination of the Storm Recovery Charge, substantial reductions in residential base tariffs and a revised fuel charge structure intended to encourage energy conservation.

Nikita Mullings, Grand Bahama Power Company's chief operating officer, said the changes are intended to provide meaningful financial relief for customers.

"Every family deserves access to affordable electricity. These changes are designed to make a meaningful difference in the daily lives of our customers by lowering bills, expanding VAT relief and rewarding energy efficiency," she said.

"We are proud to work alongside the Government to deliver on the national energy goals, affordability, and a more sustainable electricity system for Grand Bahama."

Mrs Coleby-Davis also sought to reassure Grand Bahama Power employees amid concerns surrounding the utility's ongoing transition.

"To the staff at GB Power, be assured that you remain our greatest asset," she said.

She said she plans to return to Grand Bahama in the coming weeks with company executives and newly appointed chairman, Parkco Deal to meet with employees, answer questions and provide additional details on the island's role in the country's broader energy transformation.