NASSAU, THE BAHAMAS (July 5th 2021) The Utilities Regulation and Competition Authority (URCA), the independent Regulator for the Electricity Sector (ES) in The Bahamas issues both the finalized “Tariff Review Framework, Guidelines and Procedures for Public Electricity Suppliers” as well as the “Statement of Results and Final Decision” to its preceding public consultation document.
URCA initiated its public consultation process for the new guidelines in March 2021, inviting Licensees to provide written responses by 23 April 2021. The Statement of Results provides the regulator’s analysis of the submissions made by respondents and sets forth URCA’s review and final decision.
The final Tariff Review document takes into account best practices across other jurisdictions with similar characteristics with specific consideration being given to feedback provided by stakeholders. In the document, URCA outlines the principles and procedures to be used by the regulator in a rate setting exercise.
The regulator’s stated methodology consists of estimating public electricity providers’ revenue requirements; determining a tariff that allows them to adequately recover the full cost of service; what portion of revenue must be collected from each respective customer class and ultimately designing a tariff that ensures that allocated revenue can be recovered for each of those classes. URCA intends to use this methodology moving forward to establish a transparent framework for future tariff adjustments and periodic reviews.
As the regulator, URCA’s aim is to find the right balance between the interests of the consumers, utility providers and the Government. URCA’s tariff review function aims to protect consumers, ensuring they pay a just and reasonable amount for the services received whilst ensuring that utility providers charge only that which is necessary to cover all costs and receive a fair rate of return on their investment.
URCA extends thanks to all respondents for their participation in the public consultation process. Both the Statement of Results and Tariff Review Framework, Guidelines and Procedures for Public Electricity Suppliers are available on URCA’s website at www.urcabahamas.bs
Media Contact:
Mavis Johnson Collie
Corporate and Consumer Relations Manager
Utilities Regulation & Competition Authority
Nassau, The Bahamas
Telephone: (242) 396-5201
Email: mjcollie@urcabahamas.bs
Fax: (242) 393-0153