The Electricity Sector
The electricity sector brings together the activities required to generate electricity and deliver it to consumers.
In the Bahamas, Electricity is produced by generators powered by fossil fuels, such as diesel, fuel oil and natural gas, or by renewable energy sources, such as solar and wind.
Once electricity has been generated, it must be transmittted from the generating station to the areas where it will be used. To reduce energy losses, a transformer increases, or “steps up”, the voltage so that the electricity can travel efficiently over long distances through high-voltage power lines. This stage is known as transmission.
When the electricity reaches towns and neighbourhoods, transformers reduce, or “step down”, the voltage to a level suitable for local delivery of the electricity. In some instance this step down process is an intermediary step. The electricity then travels through distribution lines where in certain circumstances it is further stepped down to a voltage that can be used in homes, businesses and other end users This stage is known as distribution. For larger bulk users such as large hotels the electricity can be delivered at the transmission voltage and stepped down to an appropriate voltage by the end user..
Electricity Supply has an administrative component that is customer-facing and manages the process through which which electricity is sold to consumers. It includes managing customer accounts, metering electricity usage, issuing bills, collecting payments and responding to customer enquiries and complaints.
Under the Electricity Act, 2024, URCA is the independent regulator of the electricity sector. URCA regulates the generation, transmission, distribution and supply throughout The Bahamas in addition to other ancillary activities including technical and economic regulation.
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:
The role and function of URCA in the electricity sector
URCA’s primary role is to regulate the electricity sector in accordance with the goals, objectives and principles underpinning the national energy policy and the electricity sector policy. URCA’s principal role and functions are set out in sections 13 and 14 of the Electricity Act, 2024, with additional responsibilities established elsewhere in the Act. These activities include but are not limited to :
- Licensing and overseeing persons engaged in generation, transmission, distribution and supply (GTDS);
- Establishing and enforcing consumer-protection standards, including standards relating to service connections, property damage, billing, credit and collections;
- Reviewing and determining electricity rates and scales of charges (i.e. tariffs);
- Monitoring the performance of contractual commitments by licensees and public electricity suppliers;
- Resolving disputes within its statutory jurisdiction, including disputes involving licensees and third parties;
- Establishing rules and approving competitive procurement processes for generation and other GTDS resources;
- Issuing technical rules and standards relating to safety, reliability, grid efficiency and the operation of the electricity system;
- Representing the Government in regional and international organisations and activities, where responsibility has been delegated to URCA;
- Promoting energy efficiency and the adoption of renewable energy;
- Regulating the use of artificial intelligence in the electricity sector;
- Exercising competition functions relating to anti-competitive agreements, abuse of a dominant position and merger control; and
- Monitoring and enforcing compliance, including through inspections, investigations, enforcement measures, penalties and, where appropriate, prosecutions for breaches of the Electricity Act, 2024.
The Electricity Sector Policy and National Energy Policy
In addition to the statutory electricity sector policy, URCA must have regard to the Government’s national energy policy. Section 5(2) of the Electricity Act, 2024 requires the national energy policy to be revised every five years. The current policy is The Bahamas National Energy Policy 2025-2030 (NEP), which was developed by the Government in consultation with URCA.
The mission of the NEP is “to create an energy sector that enhances quality of life”. Its vision is a financially and environmentally sustainable sector that supports a high quality of living through the availability of energy at developed-world standards and complements the Government’s wider national development objectives.
The NEP established 12 broad energy-sector goals for the period 2025 to 2030. Those most directly relevant to URCA’s regulation of electricity include independent regulation with opportunities for stakeholder participation, private investment and innovation, environmental protection and increased renewable energy use, energy security, the safe supply of electricity, efficient transmission and use of energy, universal service, protection of vulnerable consumers and the least-cost supply of energy.
Section 3.2(1)(v) of the NEP provides that one of its purposes is to guide URCA in discharging its functions under the Electricity Act, 2024 and the Natural Gas Act, 2024. This is intended to ensure that URCA’s regulation of the energy sector aligns and is consistent with the Government’s strategic aims and policy objectives.
For the electricity sector, the NEP calls for:
- Diversification of the generation mix and reduced reliance on imported petroleum products, including the use of natural gas as a cleaner transitional fuel while supporting greater renewable energy penetration;
- Liberalisation and unbundling of the electricity sector, particularly generation, with a target of increasing the proportion of generation capacity owned and operated by independent power producers to 55% by 2030;
- Increasing renewable energy to 30% of total electricity generation by 2030 through utility-scale and small-scale projects, photovoltaic microgrids, battery storage and the sale of excess electricity to the grid;
- Modernisation of the grid to accommodate renewable energy, reduce transmission and distribution losses from 15% to 10%, and decrease network-related outages by 30% by 2030; and
- Introduction of smart meters and advanced communications infrastructure to improve consumption monitoring, demand-side management and grid reliability.
These objectives may inform URCA’s approach to licensing, tariffs, grid interconnection, infrastructure investment, service standards, energy efficiency and consumer protection, within the scope of its statutory powers.
The revised NEP (2025-2030) aligns with the new provisions of the Electricity Act and the Natural Gas Act and can be found here: The Bahamas National Energy Policy (2025-2030) and by clicking on the link below:
Regulatory Measures and Consultation
The rules governing the electricity sector are found primarily in the Electricity Act, 2024. The Act also empowers URCA to issue regulations, guidelines, rules, notices, technical standards, decisions and determinations. These instruments are collectively referred to as regulatory and other measures.
Some regulatory measures apply to a particular person or licensee, such as a determination imposing a fine, while others apply more broadly to the sector and its participants, such as regulations or technical standards.
Where a proposed regulatory measure is of public significance, URCA must give persons with sufficient interest a reasonable opportunity to comment, including by raising concerns or objections. URCA must consider those comments before issuing the measure. This consultation process is governed by sections 19 to 21 of Part IV of the Electricity Act, 2024.
Goals 1 and 2 of the NEP similarly emphasise independent regulation, stakeholder input and engagement. These goals support public participation and collaboration among the Government, URCA, regulated entities, the private sector and the wider public.
For measures requiring consultation, URCA generally publishes a consultation document setting out the proposed measure and inviting comments. After considering the submissions received, URCA normally publishes a Statement of Results and Final Decision or Final Determination, together with the final regulatory measure.
Electricity-sector documents published by URCA are generally identified by the prefix “ES”.
The table below lists the regulations, guidelines and other regulatory measures currently in force:
| Document Title | Reference | Publication Date | Description | |
| Public Electricity Supplier Licence | ES 03/2016 | 5 August 2016 | Standard conditions of the Public Electricity Supplier Licence | |
| Fees for the Electricity Sector | ES 03/2016 | 26 September 2016 | URCA’s final determination on the types of fees it will levy in the electricity sector | |
| Regulatory Fees for the Electricity Sector in The Bahamas | ES 03/2017 | 7 April 2017 | URCA’s methodology for calculating the annual fees for the electricity sector | |
| Types of Licences and Exemptions for the Electricity Sector in The Bahama | ES 02/2018 | 1 May 2018 | Sets out the types of licences URCA will issue in the electricity sector and provides the standard conditions to be included in the Public Electricity Supplier (PES), Authorised Public Electricity Supplier (APES) and Independent Power Producer (IPP) licence types. | |
| Guidelines for the Approval of Renewable Energy Self-Generation Projects – Small Commercial and Government | ES 03/2020 | 28 February 2020 | Contains guidelines and application forms in relation to Renewable Energy Self-Generation (RESG) – small commercial and government | |
| Procurement Regulations for Electricity Sector Licensees, 2020 | ES 07/2020 | 15 July 2020 | Regulations for procurement by licensees of generation resources, transmission, distribution, storage and supply asset | |
| Public Electricity Supply Licensees Reporting Obligations Procedures and Guidelines | ES 10/2020 | 26 August 2020 | Contains URCA’s determination on requirements for PES in relation to information and data in relation to their performance including templates | |
| Consumer Protection Regulations for the Electricity Sector in The Bahamas | ES 13/2020 | 9 December 2020 | Consumer protection regulations applicable to PES and APES | |
| Tariff Review Framework, Guidelines and Procedures for Public Electricity Suppliers | ES 07/2021 | 1 July 2021 | Framework guideline of the principles, methodologies and procedures that URCA will use in the rate setting exercise | |
| URCA Alternative Dispute Resolution (ADR) Scheme for Disputes between Licensees and Independent Power Producers for the Electricity Sector in The Bahamas | ES 10/2021 | 1 October 2021 | Contains URCA’s ADR scheme in relation to disputes between licensees and IPPs | |
| Cost effectiveness tariff policy for Renewable Energy Self-Generation Projects Proposed Policy Options RESG and SSRG | ES 01/2022 | 18 March 2022 | Contains URCA’s decision as it relates to the compensation model based on URCA’s cost based pricing study for grid-tied renewable energy installations under the RESG and SSRG frameworks. | |
| Definition and interpretation of a major outage in public electricity supplier and authorised public electricity supplier licenses | ES 01/2023 | 3 March 2023 | Contains a schedule of definitions applicable in URCA regulatory documents as it relates to defining inter alia a customer base, geographic area, island-wide blackout, outage, interruption, significant customer base and major outage. | |
| Guidelines for the Electricity Sector on the Assessment of Fines for Breaches | ES 04/2022 | 7 March 2023 | Guidelines on how URCA calculates fines for breaches | |
| Competition Guidelines | URCA 02/2024 | 3 May 2024 | Guidelines for URCA’s exercise of its Competition Law powers under inter alia the Electricity Act | |
| Generation Licence | ES 11/2023 | 21 December 2023 | Standard conditions for URCA’s generation licence for standby generation only[JEE1] . | |
| Electricity System Operator Licence | ES 08/2024 | 30 September 2024 | Introduces new licence type and contains standard conditions for the System Operator Licence | |
| Electricity Transmission and Distribution Licence | ES 09/2024 | 30 September 2024 | Introduces new licence type and contains standard conditions for the Transmission and Distribution Licence |
Disclaimer: This page and the table below are provided for general information and convenience only. They do not amend, replace or supersede the Electricity Act, 2024 or any regulation, licence, decision, determination, notice, standard or other regulatory measure officially issued or published by URCA. If there is any inconsistency between the information on this page and an official publication, the official publication takes precedence. While URCA seeks to ensure that the information is accurate and current, errors, omissions or delays in updating the page may occur. Users should therefore consult the relevant official publication.
Electricity Sector Applications and Forms
Applications for licences issued by URCA must be submitted through URCA’s online licensing portal in accordance with the Licensing Guidelines [link].
Consumer complaints must be submitted using URCA’s Consumer Complaint Form [link].
The following forms are available below:
Competition Guidelines, Ex Post Complaint Form
Competition Guidelines, Merger Notification Form
Alternative Dispute Resolution, Notification of Dispute Form
Alternative Dispute Resolution, Response to Dispute Form
Renewable Energy, Small-Scale Renewable Generation (SSRG) Commercial System Application Form
Renewable Energy, Renewable Energy Self-Generation (RESG) Application Form
Frequently Asked Questions
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.
What activities require a licence from URCA?
A licence is generally required to generate, transmit, distribute and supply electricity within, into, from or through The Bahamas. Any entity that manages the operations of a licensee must also be licensed. Certain activities may qualify for a statutory exemption or permit. Persons should confirm the applicable requirements with URCA before commencing operations.
The current URCA licences are as follows:
- Public Electricity Supplier/Authorised Public Electricity Supplier licence – Authorises the generation, transmission, distribution an supply of electricity;
- Transmission and Distribution licence – authorises the transmission, distribution and supply of electricity;
- Generation licence – authorises the generation of electricity over 1MW for standby use only;
- Independent Power Producer Licence – authorises the generation of electricity for sale/export to the grid (no customer sale permitted);
- System Operator Licence – authorises a company to manage the activities of an entity to which URCA has issued another licence type
How do I apply for a licence?
Applications must be submitted through URCA’s online licensing portal using the applicable form. An applicant must provide all required supporting documents, an executed application and the applicable application fee.
What factors does URCA consider when reviewing a licence application?
URCA considers whether the applicant satisfies the Electricity Act, 2024,can comply with the standard conditions of the relevant licence as well as any relevant regulation. This includes whether the applicant is a fit and proper person and has the financial strength, resources and technical capability to provide the proposed service safely, effectively and in an environmentally sustainable manner.
How long does URCA take to process a licence application?
URCA must, within 30 calendar days, approve the application, reject it with reasons or request further information. The processing period does not begin until URCA receives a complete, executed application, the required supporting documents and the applicable application fee.
What happens if URCA requests further information?
URCA may request any additional information necessary or desirable to assess the application. Once the requested information has been received, URCA has a further 30 calendar days to evaluate the application.
Can I begin operating while my application is being considered?
No. A person must not undertake a licensable electricity-sector activity until URCA has issued the required licence, unless the activity is subject to a statutory exemption or other written authorisation from URCA.
Can URCA amend or revoke a licence?
Yes. URCA may amend, restrict or revoke a licence in the circumstances permitted by the Electricity Act, 2024. These include repeated or material non-compliance, material misrepresentation in an application, insolvency or a failure to provide the licensed service.
What types of consumer matters does URCA regulate?
URCA regulates matters including service quality and safety, billing, credit and collection practices, complaints, disconnection and reconnection procedures, and the protection of vulnerable consumers.
What should I do if I have a complaint about my electricity supplier?
You should first submit the complaint directly to your electricity supplier and allow it an opportunity to investigate and resolve the matter. Keep copies of your complaint, bills, correspondence and any response received.
When may I refer a complaint to URCA?
You may refer the complaint to URCA if the electricity supplier has not resolved it within 30 calendar days or if you remain dissatisfied after completing the supplier’s internal complaints process.
What information should I provide when submitting a complaint to URCA?
You should provide your name and contact information, account number, the name of the electricity supplier, a clear description of the issue, the steps already taken and the outcome sought. Copies of relevant bills, correspondence, photographs and other supporting evidence should also be included.
Does URCA investigate every complaint?
URCA will review the information submitted to determine whether the matter falls within its statutory jurisdiction and whether the electricity supplier has been given a reasonable opportunity to resolve it. URCA may request further information from the consumer or the supplier before determining the appropriate action.
Does URCA set electricity bills?
URCA does not prepare individual electricity bills. However, URCA reviews and determines the rates and scales of charges that comprise approved electricity tariffs and may address complaints concerning compliance with those tariffs and applicable consumer-protection requirements.
What types of anti-competitive conduct are prohibited?
The Electricity Act, 2024 prohibits agreements, arrangements and understandings that have the purpose or likely effect of substantially lessening competition or creating a new monopoly in the electricity sector. It also prohibits the abuse of a dominant position.
Is it unlawful for an electricity-sector business to hold a dominant position?
No. Holding a dominant position is not, by itself, unlawful. The prohibition applies where a person abuses substantial market power, including by restricting market entry, preventing competitive conduct or eliminating a competitor.
Who may submit a competition complaint?
Any person, including a licensee, business, consumer or member of the public, may submit a complaint concerning suspected anti-competitive conduct. The complaint should identify the conduct, the persons involved, the relevant market, the effect on competition and the supporting evidence.
Will URCA investigate every competition complaint?
URCA considers the seriousness and potential effect of the alleged conduct, the evidence provided, the resources required and whether another dispute-resolution process is more appropriate. URCA is unlikely to investigate a complaint that is frivolous, vexatious or unrelated to competition in the electricity sector.
Must a change in control of a licensee be approved by URCA?
Yes. A change in control of an electricity-sector licensee must receive URCA’s prior written approval before it is implemented. The acquirer or licensee must notify URCA within seven calendar days of concluding an agreement or announcing a public bid that would result in a change in control.
What happens if a transaction is completed without URCA’s approval?
The acquirer and licensee may be subject to enforcement action, prosecution, a fine or an order requiring the transaction to be reversed or the relevant interest to be divested.
How does URCA assess a proposed change in control?
URCA considers whether the transaction is likely to substantially lessen competition or operate against the public interest. It may approve the transaction, approve it subject to conditions, prohibit it or commence an in-depth investigation.
What fees may be payable to URCA?
Depending on the application or activity, fees may include licence application and renewal fees, annual URCA fees, change-in-control review fees, administrative charges and the Tribunal Fee.
When must the licence application fee be paid?
The applicable fee must be paid when the application is submitted. URCA will not begin processing the application, and the statutory processing period will not commence, until payment has been received.
How are annual URCA fees calculated?
Annual fees are calculated in accordance with URCA’s published Fee Schedule. Depending on the licence, the fee may be a fixed amount or may be calculated by reference to the licensee’s relevant annual turnover.
When must annual fees be paid?
Annual URCA fees must be paid within the period stated in URCA’s invoice, generally within 30 calendar days. Interest accrues daily on overdue amounts in accordance with section 39 of the Electricity Act, 2024.
What is the Tribunal Fee?
The Tribunal Fee funds the Utilities Appeal Tribunal. The amount is determined through the statutory process applicable to the Tribunal, while URCA invoices and collects the fee from relevant licensees.
Where can I find the applicable fees?
Current application, annual and change-in-control fees are set out in URCA’s published Fee Schedule. As fees may be revised, applicants and licensees should consult the latest Fee Schedule before making payment.
Can an electricity licensee set its own rates?
No. A licensee may charge only the rates and scales of charges approved by URCA. This applies to electricity sold in bulk or directly to consumers and to additional services provided by the licensee.
At present under the Electricity Act, 2024 section 38 licensees may continue to charge the tariff they charged prior to 1 June 2024 and are required to submit their fist tariff change application by 1 December 2026. Additionally, the Minister of Energy may by Order set the tariff for Public Electricity Suppliers and Authorised Public Electricity Suppliers up to 31 May 2027.
What does URCA consider when reviewing a proposed tariff?
URCA considers whether the proposed tariff is reasonable, reflects efficiently and prudently incurred costs, and is consistent with the Electricity Act, 2024. URCA also considers affordability, reliability, necessary investment, consumer interests and the electricity-sector policy objectives.
What is a cost-reflective tariff?
A cost-reflective tariff is designed to recover the efficient cost of providing electricity, including reasonable operating and fuel costs, debt obligations, maintenance, depreciation and necessary system investment. It does not mean that every cost incurred by a licensee must be passed on to consumers.
Does an approved tariff guarantee a licensee a return on its investment?
No. An approved tariff should provide an efficiently operated licensee with a reasonable opportunity to recover approved costs and earn a return on prudent investment. It does not guarantee a profit or rate of return, as the licensee’s actual financial performance will depend on matters such as demand, operational efficiency, financing decisions, cost control and compliance with its licence.
Can different customers be charged different rates?
Yes. Subject to URCA’s approval, different rates may apply to different customer classes, including residential, commercial and general-service customers. The differences must be objectively justified and must not give an undue preference to a particular class of customer or locality.
What is the difference between the base rate and the fuel charge?
The base rate generally recovers non-fuel costs associated with providing electricity, including operations, maintenance and infrastructure. The fuel charge reflects the cost of fuel used to generate electricity and may change as applicable fuel costs change.
Can the public comment on a proposed tariff?
Yes. URCA provides interested persons with an opportunity to comment on tariff proposals of public significance. The consultation process may include written submissions, public meetings and town halls at which consumers and other stakeholders may ask questions, raise concerns and present their views.
Does a town hall determine whether a proposed tariff is approved?
No. A town hall is part of the consultation process and is not a vote on the proposal. URCA must consider the comments and evidence received, together with the statutory requirements, before making its determination.
Am I allowed to have an off grid renewable energy system?
Off-grid renewable energy systems are permitted by section 54(13) once it does not exceed the capacity as established by URCA. Notwithstanding, prior to installing an off-grid system URCA should be notified and the individual should obtain building approval from the Ministry of Works.
What are the SSRG and RESG programmes?
The Small-Scale Renewable Generation (SSRG) and Renewable Energy Self-Generation (RESG) programmes allow eligible consumers to generate electricity from renewable sources for their own use and, where authorised, send excess electricity to the grid. The applicable capacity limits, approval requirements and technical conditions are established by the relevant programme and grid-interconnection requirements.
Small Scale Renewable Generation (SSRG) grid-tied PV (solar) and wind applications for system sizes between 0 kW and 100 kW. Renewable Energy Self Generation (RESG) applications for off-grid systems sized less than 1000 kW (1 MW), and grid tied systems sized between 100 kW and 1 MW.
How are SSRG and RESG participants compensated for electricity sent to the grid?
Under the applicable net-billing framework, excess electricity sent to the grid is purchased or credited at a rate equivalent to the public electricity supplier’s prevailing non-hedged avoided fuel cost. The credit and the units exported should appear on the consumer’s electricity bill.
What is the avoided fuel cost?
The avoided fuel cost is the fuel expense that the public electricity supplier avoids when it receives electricity from a consumer’s renewable energy system instead of generating that electricity using fuel. It is not the full retail tariff because the supplier continues to incur other costs, including grid, infrastructure, maintenance and customer-service costs.
Is the avoided fuel cost a fixed rate?
No. The avoided fuel cost is variable and may change as the public electricity supplier’s applicable fuel costs change. Consequently, the value credited for electricity exported to the grid may vary over time.
Is electricity used on the premises treated differently from electricity exported to the grid?
Yes. Electricity generated and used on the premises reduces the amount of electricity the consumer must purchase at the applicable retail tariff. Excess electricity exported to the grid is credited at the applicable avoided-fuel-cost rate.
Does participation in the SSRG or RESG programme guarantee a return on investment?
No. Neither URCA nor the public electricity supplier guarantees that a renewable energy system will produce a particular return. The return will depend on factors including the system’s purchase and installation costs, financing and maintenance costs, energy production, the amount consumed on the premises, the amount exported and changes in electricity and avoided-fuel-cost rates.