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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 Freeport, Bahamas – The Grand Bahama Power Company (GBPC) is pleased that our fuel hedging program has resulted in significant customer benefits. Through diligent operation of our systems and implementation of a fuel hedging program, we have been able to create predictable and stable fuel prices for customers to manage their energy costs. GBPC remains focused on stabilizing rates for customers, improving the reliability of our service, and lessening our dependence on fossil fuels.
Over the past 5 years, GBPC customers saw the fuel charge exceed 24 cents, due in part to record oil prices, with the price swinging by as much as 13 cents from August 2010 - July 2011. To minimize the risks associated with the unpredictable fuel market, GBPC established a hedging program that allows the utility to secure future quantities of fuel at fixed prices up to four years into the future.
Our program, which is a long-term, multi-year strategy, is designed to secure small amounts of future oil requirements, at known pricing contracts. Whether the price of oil rises or falls, GBPC customers are not held hostage to volatility of the market. GBPC’s hedging programme has successfully created price stability and predictability for both residential and commercial customers. This program, combined with the lower price of oil and operating efficiencies, have led to a reduction of the fuel charge by 25% compared to 2014. The year over year trend which shows the fuel charge decrease, has taken time to implement and is clearly leading to the desired outcome.
“Customers are seeing reductions in their monthly bills as fuel prices decrease. Add to this the diligent management of our internal systems and improved operational efficiencies have resulted in savings for customers,” said GBPC Managing Director Paul Miller, “we’ve worked hard to improve our internal efficiency and make the price of electricity on Grand Bahama, among the lowest in the Caribbean.”
With the reduction and stabilization of our fuel charge, the all-in price of electricity that customers pay is returning almost to 2008 levels. These efforts will continue to directly benefit our customers.
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