Bahamas PM hails GB Power takeover as path to 37% electricity cost cut

What's the deal? The Bahamian government has taken over Grand Bahama PowerDealroom has a profile for this one. Try Dealroom → Company (GB Power) in a move that Prime Minister Philip Davis says will lead to a 37% reduction in electricity costs for Grand Bahama residents. The takeover marks a significant shift in the island's energy landscape, bringing the private utility under state control.

Davis framed the acquisition as a critical step toward delivering cheaper, more reliable power to Grand Bahamians, who have long faced some of the highest electricity rates in the country.

Why now? Grand Bahama has struggled with energy affordability and infrastructure challenges, particularly in the aftermath of Hurricane Dorian in 2019, which devastated the island's power grid. The government sees the takeover as essential to modernising the system and transitioning toward renewable energy sources that could drive costs down.

The promised 37% cost reduction would provide meaningful relief to residents and businesses on an island still working to rebuild its economy.

What could go wrong? State-run utilities in the Caribbean have a mixed track record. The Bahamas' own national power provider, Bahamas Power and Light, has faced persistent criticism over outages, billing issues, and financial losses. Taking on another utility adds operational complexity and financial risk to the government's balance sheet.

Delivering a 37% cost cut will depend on successful execution of infrastructure upgrades and renewable energy integration — both capital-intensive, long-term projects. If the government can't follow through, the takeover could become a political and fiscal liability.

The signal: Grand Bahama Power is classified as an "early growth" stage utility on Dealroom, underscoring how underdeveloped the island's energy infrastructure remains even after decades of private operation. The government's decision to nationalise rather than attract fresh private investment signals waning confidence in market-led solutions for small-island energy systems — a pattern increasingly visible across the Caribbean as governments bet that state control can accelerate the renewable transition faster than incumbent operators have managed.

Read more: ewnews.com