Minister of Energy and Transport the Hon. JoBeth Coleby-Davis said according to the latest Consumer Price Index report from The Bahamas National Statistical Institute, the monthly inflation rate in November 2024 was the lowest that it has been in years.
“In fact, the rate in November was lower than the rates reported in May and July 2021 – periods under the previous administration,” the Energy Minister said during her Contribution to the 2024 – 2025 Mid-Year Budget Debate at the House of Assembly on Wednesday, March 5, 2025.
She added that in the recently released Monthly Economic and Financial Developments Report for January 2025 by the Central Bank of The Bahamas, average consumer price inflation— as measured by the All-Bahamas Retail Price Index—slowed to 0.6 per cent during the 12 months to November 2024, from 3.4 per cent in the comparative 2023 period.
She said the decrease was driven by a decline of 3 per cent in average prices for transportation services and a moderation of average inflation in the housing, water, gas, electricity, and other fuels sectors of 0.9 per cent.
The Energy Minister explained that this is a significant development and one that the Government hopes to continue through sensible leadership and sound public policies.
She also noted that the Government successfully implemented the Equity Rate Adjustment, better known as 14 ERA at Bahamas Power and Light (BPL). Through the ERA, the base rate tariff for the first 0 to 200 kWh has been reduced to zero.
The Minister said this adjustment has created a more equitable balance in the tariff structure as households no longer subsidize large commercial consumers.
She explained that BPL has approximately 94,500 residential customers. “According to the latest analysis provided by BPL, approximately 9,636 households received electricity bills between $5.00 to $19.99 in January 2025.
“Going further, approximately, 41,014 households received bills between $20.00 to $99.99. Approximately, 8,283 households received bills between $100.00 to $124.99.
“This means that approximately 58,933 households or 62 per cent of residential customers received bills under $125.00 during the month of January.”
The Minister said energy consumption is traditionally less during the winter months and there are other variables to consider such as the fuel charge, however, it cannot be denied or ignored of the impact of the ERA. “It is also worth mentioning that lower electricity bills also mean less funds paid in VAT – more money in the wallets of Bahamians.”
