The Government of The Bahamas commends Bahamas Power and Light Company Ltd. (BPL)
for its latest move to stabilize the cost of fuel in The Bahamas and deliver significant costs
savings to local households and businesses. BPL executed its first ever fuel hedge facility
that effectively sets a ceiling on the fuel surcharge for customers.

“The Government’s partnership with the Inter-American Development Bank has allowed
BPL to take advantage of low prices on the international oil market to secure affordable
crude oil coverage for The Bahamas over the next 18-months. This unprecedented step
will deliver local consumers fuel price certainty for the first time in BPL’s history,” said K.
Peter Turnquest, Deputy Prime Minister and Minister of Finance.

In the last five years, BPL reported fuel charge fluctuations that hit a high of 27.7 cents
per kilowatt hour (c/kWh) in October 2014, and a low of 8.38 c/kWh in February 2016. For
the next 18-months, consumers can expect a rate of about 10.5 cents per kilowatt hour
(c/kWh). BPL anticipates that the average customer will save upwards of 30 percent on
their monthly electricity bill.

“This move will deliver significant savings at a time when Bahamians are doing their best
to restore their lives and livelihoods in the era of COVID-19. The Government committed
to accelerating modernization reforms everywhere possible and bringing down the cost of
energy is an important component of our reform agenda. We are not only doing this with
our upcoming renewable energy projects. This initiative demonstrates that we are doing
things in the present to bring down the cost of electricity significantly to households and
business fulfilling a promise made to the Bahamian people,” said Minister Turnquest.
“This move will position the country against abrupt oil price movements and offer
protection against unexpected increases in electricity costs. It will help to protect the
Government’s limited budget resources and allow for better financial risk management in
these uncertain times,” said Minister Turnquest