Statement from the Chairman of Bahamas Power and Light

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Contrary to statements made in the press by the Leader of the Opposition, the Government of The Bahamas has not canceled the BPL fuel hedge arrangement which it has met in place. The current agreement remains in action but is not producing the results expected as the effectiveness of the current hedge arrangement is directly related to the mix of fuel, which existed before the current administration took office. However, because of issues with power generation the optimal fuel mix has not been adhered to and the
effectiveness of the hedge arrangement has diminished.

The effectiveness of the hedge going forward was greatly exaggerated in the press. It was clear from before the change in the political administration last that the savings the company expected would not follow.

The net effect of this is when the Government assumed office in September 2021, BPL was near insolvency. Clearly this position had nothing to do with any decision of this administration, but it better reflects the stewardship of the previous Government. Transitioning to a lower cost fuel for generation and increasing renewable energy in the generation mix would lead to a lower cost of energy in a climate friendly manner. The Government is working actively on providing real solutions in these two areas.