National

BPL on Financial Cliff

NASSAU, BAHAMAS – The minister responsible for Bahamas Power and Light laying all cards on the table in parliament today, explaining the power company is financially strained.

Published

3 years ago

October 5, 2022

Berthony McDermott

NASSAU, BAHAMAS – The minister responsible for Bahamas Power and Light laying all cards on the table in parliament today, explaining the power company is financially strained.

While that’s not a new issue, Sears says it’s only getting worse. If the recently announced increase didn’t come now, he says it may result in the collapse of BPL.

The revelation explains the reason behind BPL’s decision to hike up power bills.

On Tuesday, Prime Minister Philip Davis announced consumers could expect to see an increase in their November power bills, adding that it’s a move that could no longer be delayed.

Sears explained the fuel hedging strategy implemented under the former administration was working, but then things changed.

The works minister also told parliament there seems to be no sign of relief in the market.

The ongoing war between Russia and Ukraine and the exit from the pandemic caused fuel prices to skyrocket with no sign of a decline shortly.

In his address Tuesday, the prime minister announced measures to mitigate the increase like the removal of value added tax from power bills under $400 among other things.

Sears contends that while the move may not be popular, it is necessary.