A BPL truck out on the road.
By SANCHESKA DORSETT
Tribune Staff Reporter
sdorsett@tribunemedia.net
WORKS Minister Desmond Bannister said while it is unfortunate that consumers have seen a significant increase in their Bahamas Power and Light bills because of “faulty machinery,” the government cannot continue to absorb the cash strapped utility provider’s expenses.
Mr Bannister told The Tribune that BPL has a “huge legacy debt” and unfortunately the cost will have to be passed on to the public “directly or indirectly”.
He was responding to the Central Bank of The Bahamas’ monthly report that revealed that BPL’s fuel charge increased by 8.3 per cent to 13.7 cents per kilowatt hour (kWh) on a monthly basis, and by 49.7 per cent when compared to May 2016.
In a statement, BPL explained that an increase in bills for the month of May was also caused by its reliance on engines at the Blue Hills Plant, which uses more expensive fuel than the Clifton Power Station.
“I could understand consumers being angry at the increased cost because the service is unreliable and the price is high but that is the reality of what is happening at BPL,” Mr Bannister said when asked for comment.
“BPL has to pay their way by whatever means necessary, which means the cost has to be passed on to customers. The government cannot afford to continue to subsidise electrical power but we have to be able to provide reliability and to ensure the machinery is working. In order to do that the cost has to be passed on.”
Mr Bannister said he understands that “times are hard” but whether Bahamians understand it or not, either “you pay BPL directly or you pay through our taxes.”
“We have not upgraded our equipment in a long time and now it is telling on us. We need customers to bear with us because we have a plan and we will put systems in place,” he said.
“These are difficult and hard times but the question is, do you want to pay it now to the company or pay it later through taxes? So, no matter how you look at it, the customer will still pay for it. You pay one way or another, this time you are paying directly and it is easier because this way you are paying for only the electricity you use and not for someone else’s. “BPL has a huge legacy debt and it is difficult to operate the corporation with that hanging over its head. Hopefully with this new board, we can find a way to lower the price to consumers and get BPL to run efficiently.”
On Monday, Mr Bannister revealed that the new BPL board would be in place on Wednesday and said the group’s first priority is tackling the utility provider’s “inability to keep the lights on.”
In an interview with The Tribune, Mr Bannister confirmed that the new board was selected, but said Cabinet will have to release the full list of names to the press. The Tribune understands the board’s new chairman is Darnell Osborne.
Mr Bannister has repeatedly said he is “extremely troubled” that BPL has not been able to keep the lights on and provide reliable consistent electricity.
American company PowerSecure was contracted to take over management at the government-owned utility provider in early 2016.
The new management deal was promoted by the former Christie administration as being the answer to sub-par electricity service and high electricity bills.
However the country has still been plagued with repeated power outages, especially in the summer months.
Comments
ohdrap4 7 years, 4 months ago
i have no problem paying more now, but make the fat cat bec employees pay for it too by reducing their ridiculously high benefits.
DDK 7 years, 4 months ago
YOU may have no problem but there are many Bahamians living in homes with no electricity now because of the high power costs and taxes.
ohdrap4 7 years, 4 months ago
that might well be, but nothing is free. just like nhi.
austerity is required and expenses are required to fix the electricity.
the plp govt was acting like caligula.
MassExodus 7 years, 4 months ago
Most of those Bahamians living without power can thank the PLP, who they likely voted for. Many of these issues Baha Mar BEC would not have reached this point under the FNM. The PM is finally talking about solarization! It may be the countries saving grace.
Greentea 7 years, 4 months ago
Stop this FNM- PLP bull shite. This is way beyond party and is the result of failure of governance on a national level- EVERY leader we have had, EVERY Government who have stepped to the plate have failed miserably. ALL our leaders had a desire to be loved rather than do what they needed to do in real terms to get this runaway train under control. Stop trying to pin blame on one party. We need to take responsibility for this mess as a country and move forward. Enough is flickin' enough.
Well_mudda_take_sic 7 years, 4 months ago
Mr. Bannister does not seem to appreciate that blood cannot be had from a stone. Already there are way to many Bahamians who cannot afford to pay a light bill of any amount and no doubt many of them will not be disconnected for political reasons, as was the case with the previous corrupt Christie-led PLP government. And as for that so called huge 'legacy debt' that remains unpaid (about $500 million), we, the Bahamian people, in the interest of the transparency promised by Minnis, deserve to know just how much of that debt is owed to enterprises in which Sir Snake has a significant beneficial ownership stake.
We also need for Mr. Bannister to be much more forthright in disclosing to us (we, the people) just how in the hell does the government/BPL expect to make good on its commitment to fully supply Baha Mar with a reliable source of electricity before the end of 2017 without causing frequent and lengthy load shedding blackouts throughout New Providence Island for residential and commercial consumers alike?
DDK 7 years, 4 months ago
Mudda, can you say whether BEC sold shares in BEC to Power Secure when the corporation changed its operating name to BPL?
Well_mudda_take_sic 7 years, 4 months ago
The corrupt Christie-led PLP government supposedly gave PowerSecure (a U.S. enterprise) a management contract to operate what was left of BEC after the government had assumed direct responsibility for the repayment/refinancing/securitization of BEC's legacy debts totaling $500 million. For all intents and purposes, and notwithstanding all of the smoke and mirrors, the legacy debts have been transferred to honest hardworking Bahamian taxpayers and may as well now be considered part of our national debt (This of course benefitted Sir Snake greatly as he no longer has to worry about BEC being unable to repay the 'legacy debts' owed to him as these debts are now effectively owed by the government instead). Essentially two BECs were created - the operating one with all of the assets (aged power grid and rundown generating plants) and the non-operating one with all of the 'legacy debts' the old BEC could never repay. The operating BEC, under the management of PowerSecure, was then rebranded as BPL. To the best of my knowledge, PowerSecure does not have an ownership interest in the operating BEC that is now trading under the name BPL (Bahamas Power & Light).
Reality_Check 7 years, 4 months ago
You mean to tell me that significant 'legacy debts' for fuel owed by BEC to Sir Snake's fuel supply businesses were heaved on to the backs of already overburdened Bahamian taxpayers? Why should we, the people, be responsible for bailing out the super wealthy Sir Snake from losses relating to his own private business dealings with BEC. Something is definitely not right with this picture especially given that Sir Snake is always in the press touting how amazingly profitable his fuel supply businesses have been over the years and continue to be to this day. If Sir Snake's monopolistic fuel supply businesses are always making super profits it means our light bill fuel surcharge rates are too high and we are paying much more than we should at the gas pumps. Right now in most parts of Florida, gas is under $2 a gallon!
DDK 7 years, 4 months ago
Thank you, just checking. The management fee must just have been another Bahama Give-Away. Your explanation was as I understood it, but still, something is not right (other than bills going up, surcharge going up, no removal of VAT, and service going further down) ....... If the dots lead to Chinese solar, how do the N.C. folk fit in?
asiseeit 7 years, 4 months ago
The overriding reason BEC is in the state it is would have to be POLITICAL MEDDLING, If the nasty, corrupt, self serving politicians are taken out of the equation BEC may stand a chance!
Well_mudda_take_sic 7 years, 4 months ago
Re-post: Slowly the dots are being connected on all of the solarization talk by Minnis. Red China is a major manufacturer and exporter of solar panels, solar power storage batteries and other solar related technologies. It seems a deal may have been struck by Minnis and the FNM party with Red China during the FNM's costly general election campaign for the solarization of the Bahamas, but at what great cost? Is a Solyundra in the works to make certain Bahamians filthy rich at the expense of honest hardworking taxpayers who will get stuck with the monstrous bill in the form of additional national debt. Stay tuned because something definitely does not smell good here.
TheMadHatter 7 years, 4 months ago
Yes it is in the works. People only vote FNM/PLP - so they get what they ask for. The FNM is not new to people. we've seen them before. Now we asked to see them again. Here they are. LOL
proudloudandfnm 7 years, 4 months ago
Paying more for power that goes off every stinkin day.
Damn.
And not one Nassuvian will march or protest in any way... lol...
Yinna gettin what they know you'll take sitting down...
DDK 7 years, 4 months ago
The People better march!!!!!
TalRussell 7 years, 4 months ago
Real funny Comrade DDK, The People going March led by the elite upper red chamber.
DDK 7 years, 4 months ago
Comrade, marching is for anyone who feels inclined to stand up for the rights of The People!! Try it next time!
TalRussell 7 years, 4 months ago
Comrade DDK, but is marching still in the legs and the hipbones of our newest upper red chamber senator? Him marched his ass off - before his political appt.
John 7 years, 4 months ago
BPL has been on the job for two years now and they have yet to tell us how they plan to fix BEC and keep the lights on and bring the cost of electricity down. In facts new equipment should be in the pipe line and set to be up and running by years end. We done tired hearing about the broke down equipment that constantly fails. What are you doing about it BPL? Or was you just brought here to add to our misery level and suck up our money. At least when Leslie Miller was there you know when 'your as$ was gern sweat."
DDK 7 years, 4 months ago
"Additionally, the BPL board of directors has appointed Jeff Wallace as the new CEO of BPL, effective immediately. Mr Wallace has more than 35 years of utility experience and over the past 10 years served as the vice president of fuel procurement for Southern Company, where he was responsible for managing $7 billion in fuel procurement, planning and delivery programs for 85 power plants.
“I look forward to meeting the team at BPL and working towards creating a world-class utility delivering highly-reliable, low-cost power to the Bahamian people and fostering a culture of excellence at BPL that allows our employees to grow professionally and contribute to a thriving workplace,” Wallace said."
There is something rotten about this Power Secure/BPL 'management agreement' and I don't think it's cheese.
Reality_Check 7 years, 4 months ago
Darnell Osborne is definitely not the right pick as Chairman of BPL! A seasoned business person should have received that appointment, not a light weight bean counter!!
TalRussell 7 years, 4 months ago
Comrades! Our citizens are dropping dead under this Red Regime.
OMG 7 years, 4 months ago
As I understand it the fuel surcharge is related to market oil prices yet even having gone through the lowest oil prices in recent history the surcharge never seemed to reduce. On that note the customs duty on many many items including food have gone down yet recently on Eleuthera we have seen ridiculous increases on the cost of food items and not by mere cents either. Unless we have inspectors going around the shops and ensuring that the savings are passed onto customers , then I am pretty sure that any customs reductions will only go to line the pockets of the local merchants.
Well_mudda_take_sic 7 years, 4 months ago
The fuel surcharge is based on a formula that obviously has allowed Sir Snake's monopolistic fuel supply businesses to enjoy record profits year after year!
ohdrap4 7 years, 4 months ago
in view of vat, and vat on duty, reductions in custoMs duty DOES NOT translate in lower costs.
download the brochure from customs and see the example of importing a car.
the landed value is about the same as 85% duty on cif for 65% fob.
DDK 7 years, 4 months ago
There is that, but there is also the fact the cost of goods F.O.B. U.S.A. continues to increase drastically due to runaway global mega greed.
John 7 years, 4 months ago
TAL. How many people were murdered under the gold rush. Please respond in English so we can understand your response.
sheeprunner12 7 years, 4 months ago
Bahamians need to take out a class action lawsuit against BPL/PowerSecure on this fuel surcharge rip-off ........ They would get at least 50,000 customers to support this case ..... Just go in and pay your BEC bill and not pay the surcharge until BPL cut off your account...... then you can sue their crooked asses ............... Has Bannister found the $1million BPL bizplan yet??
MonkeeDoo 7 years, 4 months ago
Bannister must be wigging out now. BPL / BEC need to tell THE PEOPLE who owes money to them and for what periods of time. I sure as hell don't want to be paying extra because Leslie Miller never paid anything. Marguerite Pindling and the Governmnet itself never paid their bills. Probably the lady at the airport in business with Marguerite, Publish a list of defaulters please. Too much cover up going on. Time to march again.
MonkeeDoo 7 years, 4 months ago
This is a huge Bahamian problem. Bannister is saying its tough luck but because they are broke we have to pay a fuel surcharge. Horse shit. Change the basic rate set in 1945 right after the war and use the fuel surcharge for exactly that. You people always lying about what something is.
sheeprunner12 7 years, 4 months ago
Agreed ............... But BPL is broke because of Snake diesel monopoly
Greentea 7 years, 4 months ago
Wilson is a symptom of a bigger problem. Why have successive governments continued to use his services?
Socrates 7 years, 4 months ago
we've been screwed by successive incompetent government ownership of BEC for decades.. its badly run with crisis management and no forward planning.. there is no plausible reason for such crap service.. but management can only do what crap government allows and in this respect, both PLP and FNM have failed miserably.. what rubbish about overhead lines, cable fault, etc. as though we are the only country on earth like that..
Greentea 7 years, 4 months ago
exactly!
alfalfa 7 years, 4 months ago
Would it have been too much to ask that such an increase be communicated to the public, via press releases, and TV coverage, before just dropping it into the May bill, and giving us this B/S story. In other words no matter what the problem and the costs incurred because of same, we the public will bear it, or be threatened with having blackouts. What a poor statement to come from a newly elected cabinet minister, who simultaneously should be advising the public of what steps the government is taking to replace our obsolete energy plants, produce more eco-friendly power, and exactly when we can expect the rates to fall to levels experienced in other countries. We do not need to hear about surveys, or requests for proposals. We had enough of that crap under the PLP. Make a decision to fix this problem of high costs and blackouts, and tell us what it is, and when it will be implemented. No more beating around the bush please Mr. Bannister, and since we are being charged more, keep the power on. Is that too much to ask? Or should we pay more for the same lousy service? If it wasn't a monopoly, you would lose all your customers.
sheeprunner12 7 years, 4 months ago
JUST LET BAHAMIANS IMPORT SOLAR ELECTRICITY EQUIPMENT ........ CUSTOMS AND VAT TAX FREE ............. BEC WILL HAVE FEW PRIVATE DEPENDENT CUSTOMERS BY NEXT SUMMER ....... THEN DIVEST OF THE PUBLIC ENTITY AND LET IT BE A P-P-P LIKE ARAWAK CAY PORT WITH ATLANTIS, BAHAMAR & OTHER INDUSTRIAL ENTITIES
THIS BPL MESS DOES NOT REQUIRE ROCKET SCIENTISTS TO SOLVE!!!!!!!!!!!!!!!
DESMOND SEEMS TO HAVE ONIONS ........... HE HAS TO EXERCISE THOSE ONIONS
Greentea 7 years, 4 months ago
Many men sit at Arawak Cay boasting about their onions. One only learns the truth when those onions have to perform.
Greentea 7 years, 4 months ago
I know a Bahamian who has a condo in Miami. He goes back and forth from Nassau for his work and leaves his ac on the entire time to prevent mold, and keep things comfortable and stable I guess. You know what his bill was for last month? $47.00. Why is that? Not a drop of oil in Florida as far as I know. And guess what- not a single power outage. The failure to address the country's energy crisis has been the economic noose around this country's growth since 1973. Years of prosperity have gone down the toilet because of successive governments unwillingness to ACT. When it was revealed that that Ramsey man - concerned with others who were unnamed- sold the country out and approved substandard equipment for BEC - for a flickin kickback and that governments went ahead with BIG AZZ Bahamar WITHOUT any upgrades to the electrical grid- i just about threw in the towel. THAT is ignorance and ineptitude of Herculean levels. The situation we find ourselves in is because of PISS POOR leadership for decades and too much special and personal interests involved with BEC. Energy generation is the number one problem facing the Bahamas. NUMBER ONE- Nothing works without power. NOTHING. And we pay an incredible price - in wasted revenue, poor customer service, burnt up appliances, angry visitors, angry hot Bahamians with guns, health problems from stress and the inability to pay these rising electrical bills. ENOUGH IS FLICKIN ENOUGH. Minnis- If you want to really do something for this country - deal with this albatross on the country's economy and way of life. There are a hundred reports over the years sitting on shelves at BEC- and take it from me- they tell the story- read them yourself and make some gat dam decisions. Enough is enough. The money wasted as a result of expensive inconsistent energy generated could go elsewhere in the economy instead of the bottomless outside toilet that is BPL/BEC.
TheMadHatter 7 years, 4 months ago
Excellent points - but at the end of the day the vast majority of Bahamians really don't care about anything except making babies - so nothing will change.
sheeprunner12 7 years, 4 months ago
On a positive note .......... BPL stayed on for the Clifford Park festivities last night ........ Bravo!!!!!
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