The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Cabinet minister yesterday said the Government’s intervention was responsible for the 47 percent reduction in Grand Bahama Power Company’s base electricity rate increase.

Ginger Moxey, minister for Grand Bahama, told reporters ahead of the weekly Cabinet meeting that the hike in the island’s energy costs would have been even higher without the pressure applied by the Davis administration to both GB Power and its regulator, the Grand Bahama Port Authority (GBPA).

The GBPA’s approval granted Grand Bahama’s sole utility-scale energy provider an average base rate increase of 3.3 percent, as opposed to the 6.3 percent rise originally sought, and Mrs Moxey said: “There was a Cabinet sub-committee that was appointed to address the rate application by GB Power.

“We did meet with the GBPA and GB Power to express our strong stance against any type of rate increase. We note in a letter that was sent yesterday that there was an approved increase, but it was reduced from 6.3 percent to 3.3 percent, and we believe that this was based on our strong position.”

Ms Moxey said she was “absolutely” satisfied with the decrease, although this represents a retreat from the Government’s original position that “Cabinet will not support a rate increase on any portion of the customer base at this time”.

“I would never be satisfied with any type of increase, but after going to Cabinet we will issue a statement on it,” she added (see article on Page 1B).

The Cabinet committee she referenced featured three ministers with strong Grand Bahama connections. Besides Mrs Moxey, they included one of her predecessors, Dr Michael Darville, now minister of health and wellness, and Obie Wilchcombe, minister of social services and urban development, who is also MP for West End and Bimini.

The committee’s other members include Alfred Sears, minister of works and utilities, who has responsibility for Bahamas Power & Light (BPL), and Ryan Pinder, the attorney general.

GB Power had initially been seeking a near-$5m increase in its annual base revenue to $66.5m due to increased insurance premiums and the need to recover costs associated with restoring its transmission and distribution network following Hurricane Matthew in 2016.

Mrs Moxey added: “At the end of the day, we continue to call for compassionate leadership, because people continue to be hurting throughout the country but on Grand Bahama in particular because of what we’ve gone through as a result of Hurricane Dorian, and the pandemic and hurricanes before that.”

Members of the Grand Bahama business community yesterday remained opposed to the GB Power rate increase. James Rolle, Dolly Madison’s general manager, told Tribune Business: “Unless the Government becomes the voice of its people, the hand of suppression by the GBPA and its subsidiaries will always operate in a profiteering mode.”

Unveiling a decision where it appeared to be trying to find a middle ground, and be all things to all men, the GBPA statement said the final approval had slashed the rate increase by 47 percent compared to the original proposal. And, trying to further appease GB Power’s customers, it said the revised electricity rate structure’s implementation has been pushed back until April 1, 2022.

“GBPA worked diligently with its utility expert consultant and GB Power, which resulted in a revision of the original application. We are pleased to say the final filing has resulted in notably decreased numbers, with a reduction to 53 percent of the original filing,” the Port Authority said in a statement.

“On January 14, GBPA communicated its approval to GB Power of the revised application and reduced base rate increase to 3.3 percent. Furthermore, the implementation of any increase has been deferred to April 1, 2022, to ease the roll-out impact for customers.

“GB Power, in their projected five-year plan has committed to [getting] 15 percent of its generation from renewable sources by 2026, and proposes to invest over $80m in capital improvements, which include a 5MW (Mega Watt) solar plant and battery storage, as well as other improvements in generation and transmission and distribution.”

The Free National Movement (FNM) last night branded approval of Grand Bahama Power Company’s base rate increase as “counter productive” by making it more difficult to attract investment.

The Opposition, which holds a majority of three out of five Grand Bahama seats in the House of Assembly, blasted the go-ahead given by the Grand Bahama Port Authority (GBPA), the utility’s regulator, as “inconsiderate” given that many businesses and residents were still struggling to recover from the devastation inflicted by Hurricane Dorian and COVID-19.

The FNM added: “Grand Bahama’s economy continues to struggle through recovery which requires new and increased investment. One of the largest impediments to investment has been the cost of electricity on Grand Bahama. This decision is counter-productive and will make it even more difficult to attract and expand investment.

“While we are sympathetic to the economic plight of GB Power, we are even more mindful of the struggling residents and businesses fighting their own economic challenges and this increase will only be another blow to the island’s recovery.”