The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

DEPUTY Prime Minister K Peter Turnquest yesterday railed against PowerSecure’s reported performance bonus of $1.1m under the former Christie administration, calling it “inconsistent with the desire for improved results” in electricity service from Bahamian consumers.

Mr Turnquest, also the minister of finance, said while the particulars of PowerSecure’s contract to manage BPL is “out of our control,” its reported million-dollar compensation does “leave a little bit of a bad taste” in the mouths of disgruntled consumers.

The East Grand Bahama MP further said that Bahamians should be “rightly upset” with the February 2016 agreement PowerSecure signed to manage the government-owned utility provider, saying “there is nothing in it for the Bahamian people.”

Mr Turnquest could not say whether the Minnis administration has plans to renew PowerSecure’s contract when it expires, but said the government is “moving towards a comprehensive strategy to reform the energy sector in the country.”

As to whether or not PowerSecure fits into that “overall strategy,” Mr Turnquest said: “I’m sure we’ll have a conversation.”

Mr Turnquest’s statements were in response to an article in The Nassau Guardian stating that PowerSecure benefited from a performance bonus of approximately $1.1m under the former PLP government.

Previously, sources familiar with the initial talks between the former Christie administration told Tribune Business that PowerSecure’s compensation for managing BPL had been capped at $5m per annum.

They added that $2m was guaranteed, with the remaining $3m contingent on the US energy services provider hitting a series of performance-related goals — such as reliability, efficiency and profitability.

PowerSecure’s five-year management services agreement, reportedly worth as much as $25m, was promoted by the former Christie administration as being the answer to sub-par electricity service and high electricity bills. It was signed in early 2016.

Since taking the helm, however, PowerSecure’s efforts at restructuring the cash-strapped utility provider has been marred by island-wide power outages in the capital, and on some Family Islands. Light bills have also increased under PowerSecure’s management.

When questioned on the reports of PowerSecure’s performance bonus, Mr Turnquest told reporters yesterday: “It is inconsistent with the desire for improved results when the management company can be rewarded for what I think most Bahamians or most Nassauvians would say is an inadequate service, and that’s all I can really say about that.

“Now there are contractual terms that I’m sure that exist that govern whatever has happened. That is out of our control. But certainly, it bears looking at and certainly like you I live here, I pay that bill too, and you see that kind of compensation and we experience the results that we have, it does leave a little bit of a bad taste if you will.”

When asked if the Minnis administration will seek to renew PowerSecure’s contract when it expires, Mr Turnquest said: “We are moving towards a comprehensive strategy to reform the energy sector in the country. You would have heard the prime minister talk about his focus on alternative energy being in the mix, and so to the extent that they fit into that overall strategy, I’m sure we’ll have a conversation.

“But our focus is to bring down the cost of electricity to the lowest extent that we can by providing a reliable service. And we certainly want to focus on green technology, as we believe that it is the future and it is the most cost-effective way in the long term to achieve the kind of results that we want.”