Energy Law at Bahamas
Energy law in The Bahamas is undergoing significant transformation, driven by the government's commitment to modernize the energy sector, enhance sustainability, and promote private sector participation.
⚡ Electricity Act, 2024
The Electricity Act, 2024, which came into effect on June 1, 2024, supersedes the 2015 Electricity Act. Key provisions include:
Regulatory Oversight: The Utilities Regulation and Competition Authority (URCA) now oversees the electricity sector, including licensing system operators and transmission/distribution systems.
Private Sector Involvement: The Act allows the creation of subsidiaries or joint ventures by Bahamas Power and Light (BPL) to manage specific functions, facilitating private-public partnerships.
Renewable Energy Integration: Public Electricity Suppliers are mandated to develop plans for incorporating sustainable energy technologies into the electricity supply system.
Emergency Tariff Adjustments: The Minister of Energy can adjust tariff rates temporarily during national emergencies or for vulnerable consumers.
🔥 Natural Gas Act, 2024
Effective July 1, 2024, the Natural Gas Act regulates the importation, regasification, storage, transportation, and retailing of natural gas. Objectives include:
Environmental Goals: Promoting natural gas as an environmentally friendlier energy source.
Regulatory Framework: Establishing licensing requirements and safety standards for natural gas operations
In March 2025, the government introduced regulations under this Act to
Emissions Reduction: Empower citizens and businesses to participate in emissions reduction programs.
Incentives for Clean Technologies: Offer incentives for adopting low-to-zero carbon, energy-efficient technologies.
Monitoring Progress: Establish systems to track and report national greenhouse gas emissions, aiming for a 30% reduction by 2030.
📋 Regulatory Oversight by URCA
URCA's expanded role includes:
Fuel Tariff Audits: Conducting audits of BPL's fuel tariffs to ensure compliance with the law.
Consumer Protection: Reviewing and updating BPL's Consumer Protection Plan and Customer Contract Documents.
Efficiency Audits: Assessing BPL's performance to identify areas for improvement in energy efficiency.
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