After a mandated 12-month review, Bahamas Power and Light’s fuel surcharge will remain at about 10.5 cents per kilowatt hour through June 2022. The new low fuel charge was initially secured a year ago when BPL executed the first ever fuel hedge transaction in its history.
BPL reiterates that fuel is a pass-through cost, therefore there are no savings to the company due to the lower fuel charge: all savings go to the customer, and the average residential customer bills are down by 24% versus June 2018.
The average residential customer has saved $42 dollars on the fuel charge. Further research shows that from August 2020 to last month, customers and the public treasury saved $15 million as a result of the fuel hedge program.
BPL executives are confident that if the current trend continues, the company can project savings of about $40 million to customers and public treasury from August 2020 to January 2022.