Turnquest: Electricity rate reduction bond will be palatable for consumers

As consumers brace for an additional charge from Bahamas Power and Light (BPL), Acting Prime Minister Peter Turnquest said he’s sure the cost for consumers will be palatable.

BPL intends to restructure its $321 million legacy debt by the end of this year with the introduction of an electricity rate reduction bond, which would be applied to every customer’s bill.

BPL has not revealed how much that charge would be.

“They will do their best to ensure they maintain the level of cost that they have to pass on to the Bahamian people,” Turnquest told reporters yesterday.

BPL’s legacy debt has stifled the company for decades.

The rate reduction bond is expected to help BPL raise $350 million in new funding to invest in new power generation.

“There’s no secret that in order for BPL to turn around to meet its commitment, there’s going to have to be some participation from the public, we’ve been very transparent about that. The reality is that BPL allowed itself to get into a very serious financial mess, which has manifested itself in the manner of service that it is providing to the Bahamian people,” Turnquest said.

“To fix that is an expensive proposition. But again, the government is committed to a permanent fix and we are well on the road to that and we expect some very significant improvements very shortly.”

The Electricity Rate Reduction Bond Bill, 2019, was tabled in the House of Assembly last week.

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Paige McCartney

Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas. Paige started working as a business reporter in August 2016. Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News

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