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.
- 2014 Average Fuel Charge: 15.49¢/kWh
- 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.
Customer Rate = Base Rate + Fuel Charge
The rate that is paid by Grand Bahama Power customers is calculated in two parts:
The base rate reflects GBPC’s operating expenses, depreciation of capital assets, and a return on capital investment. 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.