The Tribune

BY NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Electricity Corporation (BEC) is having to put the “squeeze” on its customers by reinstating its Fridaydisconnection exercises, in an effort to slash its bloated $187 million accounts receivables and pay its fuel bill on a timely basis.

BEC executive chairman, Leslie Miller, speaking outside Parliament yesterday, said the Corporation’s debt over its fuel bill currently amounts to $120 million.

“We believe that this will assist our customers who are finding it difficult to pay off large account balances in full, while also improving BEC’s bottom line,” the Corporation’s said of its latest plan.

Mr Miller admitted yesterday he personally was not in support of this move, although admitting it resulted from BEC’s serious financial challenges.

And he accused the Ingraham administration’s reconnection initiative of being a key reason why BEC was facing such a significant accounts receivable challenge.

“A few months before the general election, they made a decision that Bahamians could pay their bill over a three-year period even if you have a bill that is $1,000,” Mr Miller said.

“Do you know what situation that put BEC in when BEC could not collect its bill on a timely basis? Furthermore, they should tell you why, three days before the last general election, they decided to sign a contract with Hitachi knowing that that engine consumed more diesel, 30 per cent more, than if they had purchased a slow speed engine to go to Clifton Pier.

“That cost BEC about $30 million. BEC’s accounts receivables right now is about $187 million. Thirty million dollars of that is government, the rest is the private sector. We are having a severe situation in trying to collect our funds and that is part of the problem,” said Mr Miller.

He added: “It was indicated to us strongly that because of our severe financial difficulties they have requested that we do so. I was reluctant to do that because I stopped that.

“We thought it was unfair. However, what they have put in place is that BEC’s office will be open from 9am -5pm on Saturdays to allow you to pay, because according to them they would normally get about 30 per cent of their funds on Saturday if they turn you off on Saturday.”

Mr Miller said: “I still don’t agree with it. I may have to revisit that between now and Fridaym, and probably put a stop to it. I have not supported it fully. The Board has grave reservations about it. The problem we have is we are still in this economic crisis.

“Most people who owe BEC owe a lot of money. The average homeowner owes in excess of $5,000, some as much as $15,000. How it got like that over the years, all of us are to blame - the politicians, management and everyone else who has been lax in doing it.

“We cannot now pay our bills on tim,e especially our fuel bill, which now amounts to about $120 million which we owe on fuel. We have to now put the squeeze on consumers.

“I don’t like it, I’m against it, but when you have $187 million on accounts receivable you shouldn’t have a problem collecting about $50 million of that to enable you to defray your expenses. It goes against everything the minister has given us a mandate to do, which is to turn your lights on.”