By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The Bahamas Electricity Corporation’s (BEC) executive chairman has slashed its projected 2013 financial year loss by over 50 per cent to $22 million, adding that half its disconnected customers owed less than $2,000.
While BEC is seeking to reconnect some 7,000 disconnected customers, Leslie Miller said 50 per cent of those owed BEC less than $2,000.
“When you look at it, 3,500 out of the 7,000 people that may be off owe BEC less than $2,000,” he added. “Their average light bill per month is less than $200. That means they are the people at the lowest spectrum of the economic ladder.”
Mr Miller, meanwhile, said the financial hemorrhaging at BEC “has to stop”, noting that in its 2012 financial year the Corporation suffered an $18 million net loss.
He added that, for the current year to end-September 2013, BEC could suffer an increased loss of $22 million. This, though, is much less than the $50 million he had projected several months ago, after BEC lost around $12 million in the first quarter.
Mr Miller yesterday said the Bahamas imports 99 per cent of its petroleum products, with BEC using turbines and diesel engines at its power stations.
The Corporation, which purchases its fuel from Shell West, spends $385 million on this per year, said Mr Miller.
He added that he would urge the Government to increase taxes on Esso for its lease of the seabed, noting that the company pays roughly $10,000 annually. Mr Miller said BEC would also look to purchase its own jetty for the unloading of its fuel.
The BEC executive chairman said the Government’s decision to exempt the Corporation (BEC) from Excise Tax on its fuel imports will likely save the monopoly energy supplier $35-$40 million a year.
Speaking with Tribune Business at an energy security seminar hosted by the Corporation yesterday, Mr Miller said: “That exemption is very significant. That saves us about $35-$40 million a year.
“That is significant for the Bahamian people. We are passing that on directly to the consumers. The Prime Minister mandated that whatever savings the Government gives to the Corporation should be passed on directly to the consumer.
“Over the next three years I think that you are going to see a significant reduction in the cost of electricity to the average Bahamian.”
The Government estimates that removing the Excise Tax on BEC’s fuel imports will lead to a reduction in electricity costs of 6.6 percent.
Comments
Collin 11 years, 6 months ago
The PLP are funny, they keep putting out this rather large amounts and then when the numbers come in lower than they said that it would be they cal it a savings. All of this to hide their incompetence.
The last two years are the two largest in Bahamian history, a fact that is undeniable. So they tell everyone in the mid year budget some ridiculously high amounts. So that the story line would be savings or coming under the budgeted amount; as oppose to another loss or worse deficits ever.
The PLP the party that invented smoke and mirrors.
John 11 years, 6 months ago
At least Leslie Miller has the gumption to take on the union and fight or the Bahamian people. Disconnecting and having a large segment of your custmer is no way for BEC to row its revenue. Work with the deliquent customers and try to recover the funds andbring them back on line is the sesible thing to do. BEC must also work towards establishig commercial and indusria rates forcustomers involved in business and manufacturing and/or allow them to generate a portio of their electricity to become competitive. Apla should be put in place where every traffic signalis solorised over the next 5 years (if drivers would only stop knocking them down) and every street light is solar within 20 ears. This can put a good dent in te emand for fossilfuels as te collector panels can feed the grid durng the daytime and the lights can run of solar charged batteries at night. Mr. Miller seems to have more energy than (no not BEC) but a lot of his MP collegues put together.
Reality_Check 11 years, 6 months ago
This twit (Miller) will be Christie's legacy when Bahamian's learn the extent to which electrical metres of the favoured run slower than those of the unfavoured, and the extent to which credit privileges followed by later significant writeoffs of receivables in arrears are afforded to the favoured at the expense of the unfavoured. Word on the street has it that BEC continues to leak sensitive internal information to well connected persons who now have a mountain of "explosive" dry powder to be used when the time is right.
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