BPL fuel cover still in place, says OPM communications director – Eye Witness News

NASSAU, BAHAMAS – Bahamas Power & Light (BPL) hedging program remains in place Latrae Rahming, director of communications in the Prime Minister’s Office, confirmed, noting that the as-built blanket only covered a portion of the fuel of business and will continue to do so until next year.

Latrae Rahming.

Rahming said: “It is important to note that the hedge is still in place and is saving BPL money. The as-built cover only covered a portion of BPL’s fuel cost and would continue to do so until next year. The government is not waiting for coverage to expire to find a solution and is now working on operational and financial solutions to provide long-term relief to electricity consumers.

He added: “There are a few mitigating factors that make this adjustment much more difficult than it would have been under normal circumstances. These are the fuel mix between the LFO and the HFO. While the HFO usage has increased recently, fuel usage biased from BPL to LFO (diesel) has increased fuel cost.

“Most importantly, the impact of the fire likely caused BPL to cost BPL an additional $50 million in fuel at a time when the cost of HFO was at an all-time low. This money could have been used as cushion against the impact of rising fuel costs that we are currently experiencing.

Just this week, Free National Movement leader Michael Pintard reiterated his calls for the government to provide an update on the Bahamas Power and Light (BPL) hedging program being introduced for the first time. under the Minnis administration and indicates whether the electric company will increase its fuel. charge.

Last July, BPL said its fuel charge would remain at 10.5 cents per kWh until June 2022. At the time, BPL said the fuel charge had been secured in July 2020, when the company executed the fuel hedging transaction.