By SYANN THOMPSON
Tribune Staff Reporter
sthompson@tribunemedia.net
BAHAMAS Power and Light has reminded customers about an upcoming change to bills in 2020, saying that in the midst of this the company is committed to correcting their many challenges.
A statement issued by BPL read: “We are confident in the long-term plans to improve BPL’s operating performance and our service delivery to our customers. However, in the short term, we must address the failures and neglect that have plagued BPL for many years.”
By March 2020 customers will see a new line labelled ‘National Utility Charge’ on their monthly bills.
The power provider said it hopes that the new fee structure that comes along with an increase for customers will help in reducing energy costs in the future.
“By our initial estimates, however most, if not all of any cost increase to consumers will be offset by savings resulting from our new cheaper energy generation within the next year. Meanwhile, this fee will allow BPL to service a bond that restructures about $321 million in debt while allowing us to invest in new and more efficient generation capacity,” the statement read.
In rectifying what BPL is calling ‘legacy issues’, the company said it is already preparing for the high peak seasons. BPL said that they will continue to update customers on their progress and answer any concerns.
BPL's statement also said: "In order to invest in the future and deliver more reliable energy that is less costly over time, BPL must service this debt now to make investments for the future. The summer load shedding was a prime example of what happens when a company fails to maintain existing equipment or invest in new, more efficient generators. Doing nothing will only make things far worse as we have already seen. The best way to restructure the debt while continuing to upgrade our generation capacity and modernise our control systems is through the National Utility Investment Bond.”
The House of Assembly passed the Electricity Rate Reduction Bond Act 2019 last month that allowed BPL to be bailed out by customers paying a rate reduction bond fee in monthly bills.
In November, Works Minister Desmond Bannister told parliament that the government is seeking to raise $650 million dollars for the cash-strapped corporation. “We will safeguard the stability of BPL by refinancing existing legacy debt owed by BEC and BPL to commercial banks of approximately $320 million dollars which falls due in December 2019. This permits the debt to be repaid on more flexible terms over a period of 20 to 30 years as opposed to the current short-term rolling debt,” he said.
Mr Bannister continued: “We will fund critical infrastructure investments of approximately $220 million which will stabilise the electricity system of The Bahamas, expand generation capacity, reduce the cost of fuel, help meet government solar objectives, and improve metering collections.”
Comments
TheMadHatter 4 years, 4 months ago
"BPL's statement also said: "In order to invest in the future and deliver more reliable energy that is less costly over time, BPL must service this debt now to make investments for the future..."
Nonsense. The new generators are already hooked up and running. Keep the power bill rates the same, and use the savings from these new generators to pay down the debt over time. Meanwhile, if Shell sees the opportunity here to make money by building a new plant - then LET THEM come and build it. Don't charge us to build a plant for them.
Why is it that Bahamians have to spend over 50% of their income on just 3 items? Electricity, Car Fuel, and Vaseline ?
Clamshell 4 years, 4 months ago
🤣🤣😎
stillwaters 4 years, 4 months ago
Oh Lordy.....say vaseline...
The_Oracle 4 years, 4 months ago
The mindset that creates this kind of Money grab aught to be studied in some laboratory. Once added to the power bill it will never go away, nor will it fix any short term or long term problem. Management bonuses will improve no doubt.
Well_mudda_take_sic 4 years, 4 months ago
These Rate 'Increase' Bonds are nothing but a massive fraud perpetrated by the corrupt Minnis-led FNM government on the Bahamian people. Just think about it for a moment. All of the reasons why BPL/BEC could not generate the cash flows needed to sustain its operations over the long term remain the same and include among many other things:
1) Incompetent board directors and equally incompetent executive management team;
2) An insufficient number of adequately trained engineers, technicians and field personnel;
3) Pervasive corruption instigated by corrupt union leaders and union members, e.g. Paul Maynard's gestapo squad of saboteurs;
4) Political interference by the PM and the Minister of Works in significant contractual arrangements, often involving the unjust enrichment of politically connected cronies, e.g. rental of generators, buying of new vehicles, etc., etc;
5) Political interference in issuing 'do-not-disconnect' orders for politically connected cronies, especially financial supporters of the FNM party;
6) Outrageously generous defined benefit retirement and bonus plans for management personnel and workers;
7) And so on, and so on.
And now we have the Rate 'Increase' Bonds added to this all too obvious gloom and doom mix of foolishness which will result in not only soaring electricity costs for all consumers but no doubt many business failures with rapidly escalating unemployment. The rate increase bond holders have been promised that the rates we will be charged for electricity will always be high enough to ensure the interest and principal amounts due on the bonds get repaid. This means URCA will have no say when the electricity rates charged are much too high for the vast majority of consumers to afford.
And once the rate increase bonds are issued with the approval of the corrupt Minnis-led FNM government, we will quickly see Tweedle-Dumb Minnis, Tweedle-Dee Turnquest and that incompetent bozo Desmond Bannister all genuflecting to the wishes of the bond holders and seeking to blaming them (rather than themselves) for all of our misery with unaffordable electricity bills. And just think, the majority of the bonds could end up being held (owned) by another government, like Red China, without any regard to the national security issues that would arise from a foreign government effectively having control over the pricing of electrical power for all consumers in our country. Yes indeed, Minnis has lost all his marbles, not that he ever had many to lose to begin with.
The_Oracle 4 years, 4 months ago
Good list, forgot Fuel theft, both in bulk and petty from probably all fuel tanks on all islands.
proudloudandfnm 4 years, 4 months ago
LOL...
Did you guys have to be reminded?
LOLOLOL!!!
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