The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A sustainable energy plan is needed to transform the industry, a prominent environmental attorney yesterday suggesting the Bahamas has a “long way to go” with regards to much-needed reform.

Romauld Ferreira, partner at Ferreira & Company, and a director at the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), during a presentation at the National Conclave of Chamber of Commerce in the Bahamas reiterated calls for an Environmental Protection Act, arguing that in many instances developers were “getting away with things in this country that they can’t get away with anywhere else”.

Highlighting the energy sector, Mr Ferreira argued that the Bahamas Electricity Corporation’s (BEC) fuel charge was not reflective of the market price of fuel, which suggested that there was another reason for the high charge.

“No other utility in the region serves as few customers per staff members as BEC,” said Mr Ferreira. Referencing data contained in a 2012 report produced for the Inter-American Development Bank (IDB), entitled ‘Action Plan for transforming the electricity sector in the Bahamas’, he noted that the fuel charge rose by 170 per cent from February 2010 to October 2012, but the price of fuel on the global markets between February 2010 to August 2012 rose by only 23 per cent.

Mr Ferreira further said that between 2009-2012, BEC’s average tariff rates for residential users increased by 44 per cent, while those for business consumers appreciated by 76 per cent. “These increases were above what would have been required to cover the cost of increases in the price of fuel, suggesting that there were other reasons for the increase,” said Mr Ferreira.

“Another issue is the use of high cost plants to generate a high percentage of their electricity, and poor maintenance on their part at the Clifton Plant, where instead of generating electricity by using Bunker C, they have to rely on diesel from the Blue Hills power station, which is considerably more expensive.”

“BEC produces no energy from renewable energy resources, even in places where it would be viable, in Acklins and Crooked Island and Long Cay, where you have remote populations, lots of sun and lots of wind,” said Mr Ferreira.

He added: “What we need is a sustainable energy action plan to transform the energy sector, and that will mean such a greater difference in the bottom line of business. In terms of energy we have a long way to go. We need a transformation in the sector.”

Addressing environmental issues, Mr Ferreira reiterated calls for an Environmental Protection Act. “The Bahamas is where the US was in 1970, where they could no longer ignore the degradation. You can’t ignore it. We need a serious approach to our environmental legislation,” said Mr Ferreira.

The attorney and environmentalist said a three-tiered Environmental Protection Act was needed, one which addressed land use planning, zoning and industry specific regulations

“We need regulations that are specific for industry, and encourage industry as well as sustainability over time,” said Mr Ferreira. He added that it was prudent for this nation to manage its assets, nemely the coasts, and argued that updated enforcement of environmental laws were needed, with fines against developers who commit infractions too low.

Mr Ferreira said a $5,000 fine against a major investor spending tens of millions of dollars created no incentive to comply with environmental laws.