The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

THE government has acquired all outstanding shares of the Grand Bahama Power Company in a deal Prime Minister Philip “Brave” Davis said will cut electricity bills for Grand Bahama customers by an average of 37 percent, a major intervention announced one week before the general election.

Mr Davis said the company will adopt Bahamas Power and Light’s tariff schedule, bringing Grand Bahama’s electricity rates in line with those paid elsewhere in The Bahamas. He said customers should begin seeing savings in 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,” Mr Davis said.

“Grand Bahama Power Company will adopt the BPL tariff schedule for services provided to customers in Grand Bahama. You have heard that adoption could result in savings of an average of 37 percent savings in your electricity costs.”

“As I said, it's going to bring down the cost of living in Grand Bahama and make businesses here more competitive, because families will pay less electricity.”

The acquisition was made through a special purpose vehicle called Grand Bahama Electricity Company. The transaction was funded by a loan from Standard Chartered and Scotiabank, guaranteed by the government.

Mr Davis said the move would lower the cost of living, make businesses more competitive and improve Grand Bahama’s investment climate by placing the island within the government’s broader national energy strategy.

He said the acquisition protects the jobs and benefits of existing GBPC employees and that the Bahamian management team will remain in place.

The announcement lands in the final days of a high-stakes election campaign, raising questions about the timing of a major utility acquisition and promised bill reductions days before voters go to the polls.

Mr Davis rejected any suggestion that the government should have delayed the transaction because of the campaign.

“Why do I have to defend a move?” he told reporters. “First of all, 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. I would hope to bring it sooner, but it just happened to be now.”

Mr Davis said the GBPC will continue operating as is for now, with a transitional arrangement intended to avoid disruption while tariffs, costs and charges are aligned with the rest of the country.

The company is expected to be gradually folded into the government’s broader national energy reform programme. Mr Davis said GBPC will also have the capacity to tap into international assistance.

The acquisition ends Emera’s ownership of the company. Emera first acquired holdings in GBPC in 2010.

Mr Davis thanked Emera for managing and developing the utility over the years and said more details on the transition will be announced in the coming days.

Karen Hutt, Emera’s executive vice-president of corporate development in The Bahamas, called the transfer a “watershed moment” for the company and Grand Bahama.

“This is an exciting time of transition for Emera, for the Grand Bahama Power Company and for Grand Bahama,” he said. “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.”

Nikita Mullings, GBPC’s chief operating officer, said the company remains committed to safety, reliability and service as ownership changes.

“Today's announcement is a big one for us here at Grand Bahama Power, but it does not change what defines us,” Ms Mullings said. “Our commitment to safety, reliability and service excellence, and it does not change our shared responsibility to our customers and this community.”

Energy Minister Jobeth Coleby-Davis said the acquisition would benefit more than 17,000 households and more than 1,500 small and medium-sized businesses on the island. She framed the move as a step toward fairness, oversight and regulatory consistency.

“For the first time, Freeport is being brought fully into line with the rest of the country on electricity, oversight and pricing,” she said.

Mrs Coleby-Davis pointed to what she described as wide disparities between GBPC and BPL bills.

She said a household in Pineridge paid $200.09 for 495 kilowatt hours, compared with $121.38 for the same usage in Long Island under BPL, a difference of $78.71. She said tariff uniformity would produce a 39.3 percent saving in that example.

She also said a household in West End using 1,424 kilowatt hours paid $700.21, compared with $481.50 for a household in New Providence using the same amount, a difference of $218.71. She said tariff uniformity would bring savings of 31.2 percent in that case.

“When we introduced the equity rate adjustment program initiative at BPL, which realigned electricity rates, households which use under 200 kilowatt hours of electricity, saw a zero rating of the base rate,” she said.

“Because of the new rate, 1000s of households throughout The Bahamas have seen their bills decline, allowing families to do more with their income. It's the same approach that we will implement in Grand Bahama. In the coming days, more details will be shared and we pledged to keep Grand Bahamians informed as we move forward.

Grand Bahama Minister Ginger Moxey said the acquisition responds to years of complaints about high electricity costs on the island.

“For too long, families and businesses have carried the weight of extremely high electricity costs,” she 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.”

Mr Davis said no thought had been given to changing the company’s name and that the government would take advice from Grand Bahama residents.

He also linked the acquisition to his broader promise to revive Freeport and Grand Bahama.

“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,” he said. “You just need to look around, and you'll see I've not used that word here, because you might say I'm politicking, but you can see what's happening.”