What Happened to the Promise of Cheaper, Reliable Power?

NASSAU , BAHAMAS – The promise was straightforward, to make electricity cheaper, make BPL more reliable, and put the power company on stronger financial footing.

In its 2021 Blueprint for Change, the PLP promised to review BPL’s operations within its first 100 days in office.

The party also promised to reduce the country’s dependence on fossil fuels, with a target of at least 30 percent renewable energy by 2030.

But the road from that promise to where BPL is today hasn’t exactly been smooth.

One of the first major controversies came over BPL’s fuel-hedging program.

Then-Minister of Works Alfred Sears faced heavy scrutiny over whether recommendations to continue parts of that program had reached his desk.

The issue became even more contentious as global fuel prices climbed, BPL’s financial position worsened, and customers were eventually hit with higher fuel charges.

So while lower electricity costs had been part of the promise, for many customers, their bills were moving in the other direction.

That period would eventually give way to a much bigger government plan, not just to fix BPL, but to change how electricity is generated and delivered across the country.

In May 2024, the government announced a 25-year agreement involving Pike Corporation’s Bahamian management company, Island Grid Solutions, to manage BPL’s transmission and distribution network.

The idea was to modernize an aging grid, cut down on system failures, and make it better able to handle the country’s growing energy needs.

But that arrangement later fell apart, leaving questions over how that part of the government’s energy transformation would move forward.

And the grid was only one piece of the puzzle.

The government also turned its attention to how BPL actually produces power.

That’s where liquefied natural gas, or LNG, comes in.

The plan is to bring LNG into the energy mix at Clifton Pier, reducing BPL’s reliance on more expensive oil-based fuels.

That means new generation, new infrastructure to bring LNG into the country, and the equipment needed to get that fuel to the power plant.

And alongside LNG, the government has been pushing solar and battery storage as it works toward that 2030 renewable energy target.

The Davis administration says when all of those pieces come together, customers should eventually see a power system that’s cheaper, cleaner, and more reliable.

There have also been changes to what customers pay.

The government introduced its Equity Rate Adjustment, which it says has reduced electricity costs for most residential customers.

But while the government has been working on the long-term fix, customers have still been dealing with a very present problem.

The outages.

This summer, New Providence was again hit by repeated power cuts and load shedding, leaving some homes and businesses without electricity for hours.

And the problems weren’t limited to the capital.

Grand Cay, Abaco, Long Island and other Family Island communities have also dealt with extended outages.

Homes were hit.

Businesses were hit.

Even critical facilities felt the impact.

And that came despite Energy Minister Jobeth Coleby-Davis previously expressing confidence that BPL was ready for the summer.

As the outages continued, Coleby-Davis acknowledged the challenges, even saying this week she has learned not to give “too much assurance” when it comes to BPL.

BPL, for its part, has pointed to extreme summer heat and higher demand putting pressure on the system.

The company has even raised the growing use of electric vehicles and the impact charging them during peak hours can have on the grid.

But for the opposition, those explanations haven’t been good enough.

Opposition Leader Michael Pintard has continued to hammer the government over its handling of BPL, from the fuel-hedging controversy, to electricity costs, to the continued outages.

And that brings the story back to where it started in 2021.

The government says the transformation of the energy sector is happening and points to LNG, new generation, solar, battery storage, rate reform and grid modernization as evidence of that.

But many of those projects are still either being developed, built, or rolled out.

Meaning nearly five years after the promise of cheaper and more reliable electricity, the final verdict may still be some time away.