The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

THE issue of the planned reform of the Bahamas Electricity Corporation is “before Cabinet now” with an announcement on which private company will manage the utility provider expected shortly, Deputy Prime Minister Philip “Brave” Davis said yesterday.

Mr Davis’ statements come almost two weeks after he told The Tribune that the government would ultimately commit to a “management company that can guarantee reduction of the cost billed to the customer to an average of less than 30 cents per kilowatt hour”.

At the time, he said three companies were bidding to manage the corporation. He said an announcement on which company would win the bid would be made by this week.

When questioned for an update on the matter yesterday, Mr Davis said: “A recommendation is going to be made to Cabinet in short order and hopefully an announcement will be made right after that. It is before Cabinet now.”

While speaking at an energy reform workshop at the Hilton on December 4, Mr Davis said the government had opted to select a single private sector “manager” for all of BEC’s operations, confirming a Tribune Business report that the government had abandoned its previous plans to split the corporation into two components – generation and transmission/distribution.

He said the government was setting up a “Nassau Airport Development Company model” by identifying a “strong, reliable, experienced energy company” that is “already in the business to manage BEC on certain management terms.”

However, he said the government would retain 100 per cent ownership of the corporation.

Mr Davis also said the government was collaborating with the Office of the Attorney General and BEC in drafting a new Electricity Act that would “provide for new innovations at BEC” and cover the corporation’s transition to being privately managed.

Such legislation, he said, would “enable the energy policy and empowers the utilities regulations and competitions authority that will serve as the regulator of the sector.”

He said it would also “bring in some capital” to assist in the construction of a new plant to “assist in all of the issues that impact the cost of electricity.”

According to sources, the three remaining bidders are thought to include Power Secure, China State Construction and Inter-Energy.

Mr Davis said the government’s establishment of a “new, strong and vibrant BEC” would result in customers experiencing “great improvements in the reliability of the system,” including a “great reduction” in the frequency of power outages.