The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Less than 1 percent of the 16,000 Bahamas Power & Light (BPL) customers threatened with disconnection have yet to pay-off their arrears or agree a payment plan, it was revealed yesterday.

Quincy Parker, the state-owned utility's spokesperson, confirmed in an e-mailed response to Tribune Business that just 78 clients had visited BPL and agreed payment plans across all three categories facing loss of their electricity services.

He confirmed that disconnections had already begun for customers who were $500 or more in arrears, and 90 days past due, prior to April 1 and the full onslaught of the COVID-19 pandemic plus associated lockdown.

"Disconnections began on July 6," he wrote. "[There were] 362 total up to Friday, July 17. Across all three categories, 78 persons have come in and made payment plans." The reference to "three categories" reflects that BPL has segmented its delinquent customers into three groups.

Besides those who were $500-plus in arrears for 90 days or more pre-April 1, there is also the group who accumulated the same level of debt during the three-month COVID-19 lockdown. The final category are customer who applied, and were approved, for the three-month BPL bill deferral programme implemented at the Government's request.

By far the largest group, though, is those who were struggling prior to April 1. They account for 11,399, or 71.2 percent of the 16,000 total customer delinquencies, and are also those at risk of immediate disconnection if they do not settle or agree payment plans immediately.

The other two groups, featuring a total of nearly 5,000 households and businesses, now have less than a week rectify their situation after being given until July 28 to come in and settle their arrears or make payment plans.

The fact that less than 1 percent of disconnection-threatened customers have moved to preserve their energy supply indicates the depth, and breadth, of the COVID-19 pandemic's impact on Bahamian businesses, jobs and corporate and household incomes.

However, rather than economic hardship, in some cases it could also reflect the failure to heed BPL's warnings and take them seriously. But, whatever the cause, the potential disconnection of more than 15,000 customers would represent a disaster for those impacted given that they and the economy are so energy-reliant.

Dr Donovan Moxey, BPL's chairman, yesterday said BPL's Board was due to meet on Thursday where the issue of collections, disconnections and customer arrears was among the items up for discussion.

"There is a Board meeting on Thursday, and as part of that agenda we're going to really look at our collection effort and where that stands," he told Tribune Business. "In terms of what we're going to do, I will not have anything further to say until after the Board meeting on Thursday."

The COVID-19 pandemic's economic crisis was given further focus yesterday by the John Bull Group of Companies' confirmation that is permanently terminating 103 staff members, or 15 percent of its group-wide workforce, as part of a cost-cutting measure to ensure its survival.

The group, which also operates the Starbucks franchise, and office products division and brands such as Gucci, said in a statement: "With over 60 percent of our locations still closed for business, and a devastating blow to the company’s revenue, it is with a heavy heart and great regret that we must now move to reducing our staff complement by 15 percent.

"This action is extremely difficult, however very necessary, in order for John Bull to continue to be able to function now, as well as on the other side of this pandemic, by way of a healthy employer and place of empowerment."

It added: "As the economic downturn continues with the announcement of delayed cruise ship arrivals to the port of Nassau, along with uncertain reopening dates for local resorts, some very tough decisions are necessary to secure the company if we intend to have a future in retail beyond our 91-year legacy.

"We had hoped to be in a position to retain all of our staff, but given the current and foreseeable future state of affairs it is impossible. Despite every effort to secure employment for each of our team members throughout this pandemic, the economic fall-out has been greater than we could have ever imagined."

John Bull has been hit especially hard by both Atlantis and Baha Mar electing to remain closed into the fall/winter season at least, as it has an especially strong retail presence at both mega properties. And the cruise industry shutdown has also impacted its flagship Bay Street outlet.

Many other employers, influenced by Atlantis' extended closure and the Government's move to cut-off commercial air and sea transport with this nation's largest tourist market, the US, are thought likely to follow the likes of Cable Bahamas and John Bull in making similarly tough decisions regarding permanent employee terminations in the coming weeks.

The impending end to the extended furlough period, which will arrive at month's end, is also thought to be a factor although both the Government and private sector have talked about further extending the temporary lay-off window for another 60 days to end-September.

Such events are also forcing BPL into making hard decisions, given that it needs customers to pay their bills on time to ensure it can keep the power on. However, many disconnections may be akin to trying to obtain blood from a stone, given that COVID-19 related business closures, job and income losses mean many simply lack the ability to pay or agree a plan.

Desmond Bannister, minister of works, previously justifying the state-owned utility's to resume disconnections, said the monopoly power provider "cannot continue to exist" if households and businesses fail to pay their monthly bills.

He told this newspaper that the Government was forced to pump "millions" into Bahamas Power & Light (BPL) during COVID-19's peak due to customers' inability to pay, while BPL's "shaky" financial position meant it cannot continue the "across the board" COVID-19 bill deferral initiative that was in place for three months during the lockdown.

"I think the first thing to understand is there's a tremendous amount of empathy for people that genuinely cannot pay their bills," Mr Bannister said. "The Government appreciates that.

"There's also the challenge that BPL cannot continue to exist if bills are not paid because the Ministry of Finance had to fill the deficit..... At one stage the Ministry of Finance was putting millions of dollars into BPL because of persons not paying their bills, and that's not fair.

"That was in the months of April and May. That meant you and I [and all taxpayers] are paying bills for some people who are not paying. BPL has to find out who can pay and who cannot, and require people who can legitimately pay to pay. It's a huge obligation that you and I have had to pay, and we cannot continue to do that."

Emphasising that BPL would only cut customers off as a last resort, Dr Moxey also previously urged both businesses and residential customers in difficulty to contact the utility and work out a payment plan.

“We understand everyone is having a challenging time,” he said. “We need electricity. It’s a necessity, not a luxury, so we want to work with you. Come in and sit down, and let’s determine what’s an appropriate payment plan. We’re very conscious of that. Don’t leave it to chance and hope you don’t get cut off.”