The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The BAHAMAS Electricity Corporation’s (BEC) executive chairman yesterday said it could save a minimum $60 million annually in fuel costs through the procurement of three new engines for the Clifton Pier power station, telling Tribune Business the benefits would ultimately be passed on to consumers.

Leslie Miller told Tribune Business that progress was being made with his plans to reduce BEC’s costs, particularly fuel and employee overtime, the latter amounting to more than $12 million annually.

“We are trying to secure the cheapest fuel that we can. If we get a long-term contract for fuel we’ll be in good shape, and the Bahamian people will start to see an appreciable decrease in the cost of electricity,” said Mr Miller.

While noting that the Clifton Pier power station uses the cheaper Bunker C fuel, compared to the Blue Hill Road power station that has gas turbines and uses automotive diesel oil (ADO), Mr Miller said 80 per cent of the island’s power supply needed to be generated Clifton.

He said BEC was in the initial talks stages towards securing three  42-mega watt (MW) engines, which would require a significant investment of $285 million.

“It takes them about 24-30 months to be implemented, and it’s going to cost $285 million,” Mr Miller said.

“We have got a long way to go with that. We have things to do. That is expected to save the Corporation $60 million per annum, minimum, in fuel costs, and then, hopefully, that will take place in the course of 24 to 30 months, hopefully 24.

“We are going towards that end. We are discussing that now with suppliers. We are having initial discussions along those lines, and  we are trying to formulate our strategy. It’s a significant investment but it’s going to help us; we will get it back in the long run. That’s the only way we can go.”