Barbados Light & Power Company Limited (BL&P) has acknowledged that electricity affordability is a genuine concern for many Barbadians, but it says Barbados is competitive regionally in terms of actual electricity prices.
The utility company issued a statement yesterday in response to, and to give context to, the new Caribbean Energy Price Index conclusion that Barbados has the thirdmost burdensome electricity cost in the region, while having “a mid-range electricity price that resembles the Caribbean average”.
“Based on the information cited in the media, Barbados’ electricity tariffs are below the Caribbean average. This means Barbados is competitive regionally in terms of actual electricity prices,” BL&P said.
The index, published by Caribbean economist Marla Dukharan and SOL Ecolution, assessed the average nominal price of electricity relative to the cost of living, including food prices and taxes, to determine how affordable electricity is, and concluded that, in that context, Barbados’ electricity cost was the third highest in the Caribbean after Bermuda and Turks and Caicos Islands.
BL&P acknowledged the electricity affordability concern for many Barbadians and said this issue was “one we take seriously”.
“We understand that rising costs across the economy can make electricity bills feel burdensome. In light of recent coverage of the Caribbean Energy Price Index, we want to offer clear context so customers understand what the findings mean for them,” the company stated, adding that, in the context of the index, there was a clear distinction between affordability and actual electricity prices.
“The Caribbean Energy Price Index measures affordability, not electricity prices alone. Affordability reflects broader national economic conditions, including household income, food prices, taxation, cost of living, and purchasing power,” BL&P noted.
“It is a measure of how electricity costs fit within overall household expenses and not a ranking of utilities’ electricity rates. In simple terms, the study is not saying that Light & Power charges the third-highest electricity rates. It is saying that electricity can feel expensive when compared to what people earn and what everything else costs.”
BL&P said these were “broader national economic realities, not utility pricing decisions”.
Regarding its commitment to reliable, affordable electricity, the company said it “continues to perform strongly by regional standards, delivering among the highest reliability levels and lowest system losses in the Caribbean”.
It attributed these outcomes to “ongoing infrastructure investment, disciplined system planning and operations, independent oversight by the Fair Trading Commission, and engagement with policymakers in the Ministry of Energy”.
“Our teams work every day to deliver reliable electricity at competitive rates while protecting service quality and long-term system stability,” the company said. (SC)
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