Today marks the start of the financial year for The Bahamas Electricity Corporation; and it is also beginning of the promised plans to reduce the cost of electricity for some 30,000 consumers in New Providence, Paradise Island and the Family Islands.
Minister of Works and Utilities Bradley Roberts on Tuesday said since making the rate reduction announcement in the House of Assembly two weeks ago, he has received many “positive” comments and “everyone is tickled pink and elated.”
He said consumers should expect to see a decrease in their October electricity bills, whenever the “staggered” billing process is conducted.
“Those people who monitor their bills very closely would be able to go back and see a change. Those persons who are billed from the first to the end of each month, would be able to tell when the October billings come out, but those who get their bills in the middle of the month, would only see half of this (decrease) reflected during this period,” he said.
Minister Roberts further said like BEC, the Bahamas Telecommunications Company is expected to follow with a decrease of its cell phone rates. He said once BTC fully lifts its moratorium on cell phones and introduces its new $28 million GSM network sometime before the Christmas, the public would see a reduction.
The GSM network will essentially provide visitors, as well as local cellular customers with global roaming – affording them the luxury of staying connected to home and families, while travelling to and from The Bahamas.
GSM is the internationally accepted cellular standard presently deployed in over 179 countries. BTC signed a contract agreement with the Canadian based Nortel Networks on June 16 to implement a GSM/GPRS infrastructure.
Meanwhile, Minister Roberts publicly announced in the House of Assembly on Sept. 17, that today’s reduction exercise marks the first time in BEC’s history that the cost of electricity would be reduced.
At the time, he said on Oct 1, there would be a reduction in the basic rate of five per cent and further reductions would result from other initiatives related to a change in calculation of the fuel surcharge and the application of the maximum demand charges for customers with maximum demand meters.
“The maximum demand charge will be based on the adjustment and application of the maximum demand time every six months, as opposed to the current practice of once per year,” Minister Roberts said at the time.
A residential customer consuming up to 800 kilowatts per month with the tariff rate change, minimum rate threshold and fuel surcharge adjustment, will realise a 17 per cent reduction in monthly bills. He pointed out however, that the Corporation has made the decision to affect the largest percent of reduction in electricity rates for the customer at the lowest end of the income scale.
A residential customer consuming 1,200 kilowatts per month with the new tariff rate, minimum rate threshold and fuel surcharge adjustment will, realise a 12 per cent reduction in electricity bills. On average, a small commercial customer consuming 1,200 units per month with the new tariff rate change and fuel surcharge adjustment will realise an 11 per cent reduction in monthly electricity bills.
Large commercial customers will benefit from a five per cent reduction in the tariff rate, a two per cent reduction in the fuel surcharge adjustments and a five per cent reduction in the maximum demand charge.
“For example, a large commercial customer with an annual maximum demand of 20 kVA using 10,200 units per month would realise a minimum of 12 per cent reduction in monthly electricity bills,” Minister Roberts said in the House of Assembly.
Also beginning today, BEC will pay a three per cent interest on all customer deposits and the exercise will cost the Corporation approximately $700,000.00 based on current deposits held.
By Tamara McKenzie, The Nassau Guardian
