NASSAU, The Bahamas -- Minister of Energy and Transport the Hon. JoBeth Coleby-Davis said the main legislation governing the energy sector in The Bahamas is the Electricity Act, 2024.
“The Act was passed in May 2024 and came into force on June 1, 2024. The Electricity Act, 2024, repealed and replaced the Electricity Act, 2015,” the Energy Minister said during the University of The Bahamas Legal Week, at UB on Monday, January 27, 2025.
“A major feature of the 2015 Act was the management arrangement between the Bahamas Power and Light (BPL) and Power Secure, which was proposed and subsequently abandoned. Further, there was the statutory introduction of a rate reduction bond. However, neither the management company framework nor the rate reduction bond ever materialized.”
She explained that the objective of the Act is to modernize and consolidate the law relating to the supply of electricity and to repeal the Electricity Act, Chapter 194 and for connected matters.
“The Act makes provisions for National Energy Policy and Electricity Sector Policy Objectives, Functions and Powers of BPL in the Electricity Sector, Regulation of Electricity Sector, Renewable Energy in the Electrical Sector, Authorised Public Electricity Suppliers in the Family Islands, Appeals to the Utilities Appeal Tribunal, and Offenses, Fines and Penalties.”
The Minister said, ”Specifically, the Electricity Act, 2024:
- Removes the obligation to have a system operator (management company),
- Removes references to the rate reduction bond,
- Permits a licensee to engage a system operator for the management and operation of any or all generation, transmission, distribution, and supply services; such system operator must be a licensee,
- Encourages the transmission to an environmentally sustainable manner,
- Enables the Minister with responsibility for Energy to temporarily adjust tariff rates in the event of national emergencies, hurricanes, and natural disasters, and for the benefit of a vulnerable class of consumers,
- Enhances competition in the electricity sector,
- Promotes energy efficiency programmes among licensees,
- Bolsters consumer protections,
- Facilitates alternative dispute resolution among licensees,
- Better oversight of off-grid solar systems,
- Allows for Utilities Regulation Competition Authority’s (URCA) right to inspection of licensees for compliance with the Act,
- Provides for hurricane reserves, and
- Regulation of artificial intelligence in the electricity sector.”
The Energy Minister said several renewable energy projects are expected to start this year. The Government’s focus is on renewable energy, because the country must diversify its energy generation sources and do so in a cost-effective manner. “The Electricity Act, 2024 will help us achieve this goal.”
She said, “In many respects, the Electricity Act, 2024 is comprehensive and provides a regulatory framework that is relevant. As Minister of Energy and Transport, I was proud to have overseen and led the update to the Electricity Act.”
(BIS Photos/Anthon Thompson)
