Regulatory Framework

About Grand Bahama Port Authority Regulatory Division

The Grand Bahama Port Authority (GBPA) is the regulatory authority with responsibility for the power sector in Grand Bahama. Under its regulatory jurisdiction is oversight of the Grand Bahama Power Company (GBPC).

The legislative framework which grants the authority for regulation is set out in both the Hawksbill Creek Agreement and The Operating Protocol & Regulatory Framework Agreement (Regulatory Framework) implemented in 2013. The Agreements establish the GBPA as the independent regulator of the power sector with responsibility to approve the rate structure for the utility and to ensure operational standards are in line with international prudent utility practice, throughout the industry.

Legislation

In 2013, a Regulatory Framework Agreement was established for the GBPC. The Regulatory Framework documents how electricity rates will be set for Grand Bahama and how GBPC meets its obligation to provide a appropriate level of service to its customers. The Agreement enables the GBPA to establish Performance Targets and Customer Service Standards against which the utility is measured. 

Tariffs

GBPC is required to submit an application for rate approval to the GBPA every three years, in accordance with the Regulatory Framework. 

The “All-In” rate paid by Grand Bahama Power customers is comprised of two parts:

i) The Base Rate reflects GBPC's operating expenses, depreciation of capital assets, and return on capital investment.

ii) The Fuel Charge is the actual cost of fuel used to generate electricity and is a full pass-through mechanism which generates no profit to the utility.

The Grand Bahama Power Company has four classes of customer tariffs:

  • Residential
  • Commercial
  • General Service Large/Industrial
  • Temporary

Service Standards and Operating Protocols

As part of the established Regulatory Framework, GBPA has authority to establish Performance Targets and Customer Service Standards for the utility.  GBPC is required to report to GBPA on the Performance Targets and Customer Service Standards on a monthly, quarterly and annual basis.

Reports

Fuel Charge

GBPC is required to submit its Fuel Charge calculations with all supporting data by the 15th of the subsequent month to the Regulator.

Efficiency

GBPC is required to report the utility’s heat rate and system losses performance on a monthly basis to the Regulator.

Heat Rate refers to the amount of energy (measured in BTUs) required to produce one KWh of electricity; the lower the heat rate, the greater the efficiency. 

System Losses refers to the total of all energy lost or wasted on a system due to line loss and other forms of energy loss, unaccounted energy use and theft, among other factors.

Reliability

GBPC is required to report the state and performance of its Generating and Transmission & Distribution assets, on a monthly basis to the Regulator. Additionally, documentation is required to be provided on a monthly and quarterly basis.

Reliability is measured with three indicators:  SAIDI, SAIFI & CAIDI reports.

SAIDI means "System Average Interruption Duration Index".  It measures the total duration of all power interruptions (in hours) that the average customer experiences during the year.

SAIFI means "System Average Interruption Frequency Index".  It measures the average number of times that a customer experiences a power outage during the year.


CAIDI means "Customer Average Interruption Duration Index". It measures the average duration per power interruption that a customer experiences during the year.

Customer Service Standards

GBPC is required to report quarterly to GBPA on the Customer Service Standards. In cases where the utility fails to satisfactorily meet the established service metrics, customers will receive written communication and a subsequent credit on their account.

Customer Service Metrics:

  1. Restoring power after a fault, for a single customer (Target within 12 hours of being reported)
  2. Responding to customer complaints, billing and payment queries (Target within 21 days)
  3. Connect or transfer a service (Target within 3 working days)
  4. Reconnecting service after disconnection at the meter (Target within 1 working day after payment of the bill)
  5. Meter inspection
  6. Meter reading
  7. Meter testing

Note: Monetary compensation is associated with items 1, 2, 3 and 4 if the target service level is not met. 


Residential Tariff

Available in all territories served.

Application

For all domestic purposes in private residences, multi-family units, condominiums and apartments.

Character of Service

Continuous alternating current of approximately 60 hertz, single-phase, 3-wire, at a nominal service voltage of either 120/240 volts or 120/208 volts as available at the point of delivery.

Limitation of Service

All service required by customer for domestic purposes, including air conditioning or electric space heating shall be supplied through one meter. This service may not be used for other purposes.

Deposit

  1. For a new location, the security deposit is based upon the electrical specification. The minimum security deposit for a residential customer is $500.
  2. Where the location is not a new one but has a history, the deposit is calculated as two times the average bill.
  3. After one year, if a customer applies for a review of their security deposit based on their actual energy usage and payment history, the deposit is recalculated and if applicable, any amount over $500.00 is refunded.

Monthly Bill

Computed in Bahamian currency in accordance with the following charges:

Energy Charge

First 350 kilowatt-hours 18.39 cents per kilowatt-hour

Next 450 kilowatt-hours 21.35 cents per kilowatt-hour

Additional kilowatt-hours 25.02 cents per kilowatt-hour

Fuel Charge

The actual cost of fuel used to generate electricity. This is a full pass-through mechanism which generates no profit to the utility. 

Minimum Bill

Minimum bill $10.00


Commercial Tariff

Available in all territories served.

Application

For lighting, power and other purposes for commercial, light industrial, institutional, and other services exclusive of residential. 

Character of Service

Continuous alternating current of approximately 60 hertz, single or 3-phase, available at standard nominal secondary service voltages in accordance with the company's "General Rules and Regulations for Electric Service" for permanent accounts.

Limitation of Services

All service required by customer shall be furnished by one meter to each building, premises, property, or group of properties under one ownership or management.

Deposit

Security deposit quotes:

  1. For a new location, the security deposit is based upon the electrical specification. The minimum security deposit for a commercial customer is $800.
  2. Where the location is not a new one but has a history, the deposit is calculated as two times the average bill.
  3. After one year, if a customer applies for a review of their security deposit based on their actual energy usage and payment history, we would recalculate and if applicable, refund any amount over $800.00.

Monthly Bill

Computed in Bahamian currency in accordance with the following charges:

Demand Charge

First 5 Kilovoltamperes (kVA) of monthly maximum demand or less at $44.45 plus additional kVA of monthly maximum demand at $8.89 per kVA.

Energy Charge

First 20,000 kilowatt-hours 19.26 cents per kilowatt-hour

Next 80,000 kilowatt-hours 17.88 cents per kilowatt-hour

Additional kilowatt-hours 16.50 cents per kilowatt-hour

Fuel Charge

The actual cost of fuel used to generate electricity. This a full pass-through mechanism which generates no profit to the utility. 

Minimum Charge

The minimum monthly charge is $44.45.


Fuel Charge Calculation

Like many other jurisdictions, Grand Bahama Power recovers the amount it spends on fuel through a Fuel Charge. This is an open, transparent process that is calculated in accordance with a formula approved by Grand Bahama Power's Regulator, the Grand Bahama Port Authority.

The fuel charge is determined each month based on two factors:

  • The actual cost Grand Bahama Power paid for the fuel it is now burning; and,
  • The amount of fuel Grand Bahama Power uses in that month to produce electricity.
  • The total amount (cost x amount used) is divided by the total kWh's used on the island during that month to arrive at a cent per kWh cost (¢/kWh) that is charged to each customer.
  • 2013 Average Fuel Charge: 16.79 ¢/kWh
  • 2012 Average Fuel Charge: 20.69 ¢/kWh
  • 2011 Average Fuel Charge: 20.6981 ¢/kWh

The amount paid for fuel is based on world oil market prices. Grand Bahama Power does not profit from the price or quantity of fuel that it uses.

ABOUT GBPA


The Hawksbill Creek Agreement (HCA) gave GBPA responsibility for the development, administration and management, and provision of services within an area called the 'Port Area' (230 sq. miles). GBPA was mandated by this Agreement to build a deep water harbour, an industrial community and required infrastructure for the City.

Read More...

PRESIDENT'S MESSAGE


GBPA has achieved an astonishing amount since its inception in 1955.  When first created it was a Grand Bahamian business conglomerate charged not only with land and commercial development but also with all the regulatory and administrative functions of the Freeport/Lucaya.

Read More...

THE WAY FORWARD


Firstly, I wish to thank Joan Albury and the Counsellors for this platform enabling us to share with the Grand Bahama community, the outlook for our island! 2015 marks the 60th year of the birth of Freeport and the Hawksbill Creek Agreement; 60 years of a partnership between The Government of The Bahamas and The Grand Bahama Port Authority. I'm here to raise hopes for 2015 and to lay a few popular myths to rest - For those who don't know me, I am Sarah St George.

Read More...