Electricity

The Bahamas National Energy Policy

The Government of the Bahamas, in its National Energy Policy 2013–2033, sets forth the following strategic goals, among other things, for the electricity sector:

• to foster dynamic and appropriate governance, institutional, legal and regulatory framework advancing future developments in the energy sector underpinned by high levels of consultation, citizen participation, and public-private sector partnership.
• to build a modern energy infrastructure that enhances generation capacity and safely, reliably and affordably distributes electricity to consumers on a sustainable basis;
• to promote the availability of sustainable energy opportunities. The Government’s aim for renewable energy is that it should make an increasing contribution to the Bahamas’ energy supplies moving forward;

URCA’s activities in the electricity sector will be guided by the overarching objectives as set out in the National Energy Policy. As the designated regulatory authority for the sector, URCA work involves the following key projects:

1. development of the framework for the ES Licensing Regime;
2. monitor the implementation of the Renewal Energy Supply Obligation;
3. amalgamate the Public Consultation Guidelines for the ECS and ES; and
4. oversee the development and implementation of the Consumer Protection Policy

Licensing

The Electricity Act of 2015 prohibits individuals from engaging in activities such as generation, transmission, distribution, retail, import, export, or wholesale trading of electricity in The Bahamas without obtaining a license from URCA.

On 1 June 2024, the new Electricity Act, 2024 came into effect, expanding URCA’s regulatory remit of the electricity sector to include licensing of System Operators and Transmission and Distribution systems, among many other changes.

On 1 June 2024, the Natural Gas Act, 2024 came into effect, making URCA the regulator of all aspects of the value chain of Natural Gas operations in The Bahamas.

Renewable Energy

The National Energy Policy and Electricity Sector Policy prioritize the creation of sustainable energy opportunities and improving energy security in The Bahamas. URCA believes that advancing this objective is crucial to the government’s climate change strategy. Incorporating a percentage of electricity from renewable sources will aid The Bahamas in achieving both national and international targets for reducing carbon emissions and greenhouse gases.

Part V of the Electricity Act requires Public Electricity Suppliers (PES) to develop and submit to URCA a plan for the introduction of sustainable energy technologies into the electricity supply system.

Consultation

One of the strategic goals outlined in the Bahamas National Energy Plan, and mirrored in Part VIII of the Electricity Act 2024, is to encourage extensive consultation, citizen participation, and collaboration between the public and private sectors. This practice is currently upheld in the Electronic Communications Sector (ECS) regarding consultation and publication of documents by URCA. URCA has observed the connection between the consultation provisions within the Electricity Act and the related provisions of the Communications Act. URCA will persist in consulting with stakeholders on significant energy matters. Accordingly, URCA is reviewing its procedures for consultation.

Consumer Protection

The Consumer Protection Plan (CPP) for the electricity sector, required by the Electricity Act 2015, was created in collaboration between licensees and URCA in 2017. It underwent public consultation, as with other regulatory documents. URCA prioritizes consumer protection and plans to update the Quality of Service Framework to address consumer concerns in the electricity sector. This aligns with the goal of providing safe, affordable, reliable, and environmentally sustainable electricity in The Bahamas.