One week ahead of the country’s hotly contested general election, the Bahamian government has finalized a deal to purchase all outstanding shares of the Grand Bahama Power Company (GBPC), a move Prime Minister Philip “Brave” Davis says will deliver an average 37 percent reduction in electricity bills for residential and commercial customers across the island.
Under the terms of the acquisition, GBPC will align its pricing structure with the national tariff schedule already in use by Bahamas Power and Light (BPL), bringing Grand Bahama’s electricity rates in line with what consumers pay in other regions of The Bahamas. Davis confirmed that cost savings will appear on customer bills as early as the next billing cycle.
“This decision was made with a clear purpose: to bring down the cost of electricity for the people of Grand Bahama and place this island inside our national energy strategy,” Davis told reporters. He added that the rate cut will reduce overall cost of living for local families and boost the competitiveness of Grand Bahama’s business community, supporting long-term economic growth on the island.
The government executed the acquisition through a newly created special purpose entity, the Grand Bahama Electricity Company. The transaction received full funding from loans issued by Standard Chartered and Scotiabank, with the Bahamian government serving as guarantor for the borrowing.
In addition to consumer savings, Davis outlined three core policy benefits of the move: it integrates Grand Bahama into the government’s national energy strategy, strengthening the island’s overall investment climate; it preserves all existing jobs, benefits and the current Bahamian management team at GBPC; and it lays the groundwork for GBPC to access international development support for future energy projects.
The timing of the high-profile utility acquisition, coming just days before voters head to the polls, has sparked questions about political motivations behind the announcement. Davis rejected calls to delay the reveal until after the election, arguing that governing does not pause during campaign season.
“Why do I have to defend a move?” Davis said. “Governance don’t stop because election is in the air. We still have to govern, and this transaction has been in the making for quite a while. The process just happened to be ending now. Should we abandon it when we’re going to be able to bring relief to the people of Grand Bahama immediately? We will bring relief now. I have nothing to defend, other than to say I’m bringing relief to Grand Bahama.”
For the immediate future, GBPC will continue normal operations under a transitional framework designed to avoid service disruptions while pricing structures are aligned with national standards. Over time, the utility will be gradually integrated into the government’s ongoing national energy reform program. The acquisition brings an end to Canadian energy firm Emera’s 13-year tenure as the majority owner of GBPC, after Emera first acquired a stake in the company in 2010.
Davis thanked Emera for its years of management of the utility, noting that additional details on the transitional process will be released to the public in the coming weeks. Karen Hutt, executive vice-president of corporate development for Emera in The Bahamas, framed the ownership transfer as a “watershed moment” for both the company and the island.
“This transition of ownership from Emera to the government provides a historic opportunity for Grand Bahama power and the island of Grand Bahama to play a pivotal role in the nation’s energy future under The Bahamas comprehensive and progressive national energy policy,” Hutt said.
Nikita Mullings, GBPC’s chief operating officer, reassured customers that the ownership change will not impact the utility’s core service commitments. “Today’s announcement is a big one for us here at Grand Bahama Power, but it does not change what defines us,” Mullings said. “Our commitment to safety, reliability and service excellence remains unchanged, and it does not change our shared responsibility to our customers and this community.”
Energy Minister Jobeth Coleby-Davis explained that the acquisition will deliver tangible benefits to more than 17,000 households and over 1,500 small and medium-sized businesses across Grand Bahama, framing the move as a critical step toward pricing fairness and regulatory consistency across the country. For years, Grand Bahama consumers faced drastically higher electricity rates than customers in other parts of The Bahamas under the previous private ownership structure. To illustrate the gap, Coleby-Davis shared that a 495 kilowatt-hour bill in Grand Bahama’s Pineridge neighborhood cost $200.09, while the same usage on Long Island cost just $121.38 under BPL’s tariff— a difference of nearly $79, translating to a 39.3 percent savings after alignment. Similarly, a 1,424 kilowatt-hour bill in Grand Bahama’s West End cost $700.21, compared to $481.50 for the same usage in New Providence, delivering a 31.2 percent savings for local customers after the change.
The minister added that the national policy’s low-income protection, which sets a zero base rate for households using less than 200 kilowatt-hours of electricity monthly, will now extend to Grand Bahama, putting thousands of dollars in annual savings back into the pockets of vulnerable families.
Grand Bahama Minister Ginger Moxey noted that the acquisition addresses decades of constituent complaints about unsustainably high energy costs on the island. “For too long, families and businesses have carried the weight of extremely high electricity costs,” Moxey said. “This Davis administration has heard the cry and meaningful change is here to address this vexing legacy issue, not years down the road, but with your next billing.”
Davis confirmed that the government has not yet made a decision to change GBPC’s name, and will consult local residents on any potential rebranding. He also linked the acquisition to his broader campaign promise to revitalize Freeport and Grand Bahama’s economy. “I have committed myself that while I have the ability to do it, I will try to bring back the magic to the city and I dare say we are well on the way,” Davis said.