The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

AN announcement on the strategic partner for the Bahamas Electricity Corporation will come “shortly,” Prime Minister Perry Christie said yesterday.

Mr Christie said BEC has instituted 12 per cent billing reductions for residential consumers, proof of which should be available on January’s bills.

Mr Christie spoke at the Bahamas Business Outlook at the Melia Nassau Beach Hotel yesterday morning.

This comes just days after Deputy Prime Minister Philip Davis said the government decided to defer the announcement until after Mr Christie’s return from an energy security summit held in Washington, DC, earlier this week.

However, Tribune Business reported on Monday that the BEC reform process had been delayed because the government wanted to ensure that there was no truth to unsubstantiated “integrity concern” rumours that have been raised over its preferred bidder.

Mr Christie said yesterday: “We should be completing a critical part of the BEC restructuring exercise shortly with the selection of a successful bidder.

“BEC has instituted billing reductions in the range of 11 per cent to 12 per cent for residential consumers over a specified period of October 2014 to January 2015. I’m advised by BEC that we should see in the January billings the beginning of reductions in the cost.”

Mr Christie first announced plans to reform BEC in August 2013. At that time, Mr Christie said two separate companies would take over the management and power generation at BEC and that the contracts would be signed at the end of 2013.

However last December, 16 months after Mr Christie’s initial announcement of the plans for BEC, Mr Davis added further confusion and speculation over the matter when he confirmed a Tribune Business report that the government had abandoned its previous plans for a split.

He said the Christie administration was opting to select a single private sector “manager” for all of BEC’s operations. It came amid his repeated promises to reporters that the process surrounding BEC’s reform was drawing to a close.

“First of all, it is a monumental step we are taking and I think we want to ensure that what we are doing is in the best interest of the Bahamian people,” said Mr Davis last Friday about the delays.

Mr Davis also said that the government consulted extensively, assessed and evaluated inputs and advice from civil society and industry experts before making a final decision.

The current cost of electricity is around 40 and 44 cents per kilowatt hour for residential and non-residential customers, respectively, according to Mr Christie. The restructuring of BEC is intended to reduce this cost to consumers by 30 per cent to around 31 cents based on current fuel and other input costs.

“In addition, our energy infrastructure is outdated,” Mr Christie said yesterday. “We also recognised that reducing the cost of energy is paramount to reducing the cost of living and doing business for both domestic and business consumers. It would cause sustained economic development by both domestic and foreign investors.”