The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Prime Minister yesterday confirmed that the Electricity Bill 2024 provides “the flexibility” to remove the Grand Bahama Port Authority’s (GBPA) ability to regulate the energy sector in Freeport.

Speaking to journalists, Mr Davis was asked if the legislation set to be debated by the House of Assembly next Wednesday “intends to take away the authority for Freeport energy from the Grand Bahama Port Authority and give it to URCA” (the Utilities Regulation and Competition Authority) based on provisions in the Bill.

Replying, the Prime Minister affirmed: “That flexibility exists in the Bill.” His words affirm that Tribune Business’s initial analysis of the Bill and its contents were correct, as it had been informed that the Government appeared to have found “a sneaky way to circumvent the Grand Bahama Port Authority (GBPA)” and its regulation of utilities in Freeport via powers bestowed by the Hawksbill Creek Agreement.

The Bill, which treats Grand Bahama as a Family Island, appears to make the Grand Bahama Power Company the “approving authority” for anyone submitting a proposal to supply electricity to the public on the island.

The Bill states that any approvals by such an “authority” must also be given the go-ahead by URCA, and it was suggested this was a neat way of circumventing the GBPA’s utilities regulatory authority in Freeport and transferring it to URCA via GB Power Company.

It thus appears the Government is eyeing a further way to squeeze the GBPA, and erode and strip it of its ability to regulate utilities in the Port area, with ten- sions already inflamed by the Government’s demand that the GBPA pay $357m to reimburse it for costs incurred in providing public services in Freeport over and above the tax revenues generated by the city.

Mr Davis said he yesterday received an “update” on the progress the Government is making with its demand, as the attorneys for both sides were due to meet this week to see if a last-minute compromise or settlement can be reached. In reality, they are also likely to be finalising the arbitration process and affirming who will be selected as arbitrators.

“The process is moving,” the Prime Minister added. “I think the lawyers are meeting. I got an update earlier that they are talking, and we will see what happens. If there’s no concrete way forward we’ll continue the process as ordained by the agreement that exists between us.” When asked what that will involve, he replied: “That’ll look like arbitration.”

The Electricity Bill, meanwhile, explicitly states that it applies to Freeport and Grand Bahama Power Company even though the latter’s 2016 Supreme Court action, where it sought an injunction to prevent URCA “from regulating, or seeking to exercise licensing and regulatory authority” over it, remains live.

GB Power’s action is founded on the basis that, as a GBPA licensee, it is licensed and regulated by the latter via the Hawksbill Creek Agreement - and not by URCA and the Electricity Act 2015.

It is arguing that the existing Electricity Act’s sections 44-46, which give URCA the legal right to licence and oversee energy providers, “are inconsistent, and conflict with, the rights and privileges vested in [GB Power] and the Port Authority” by the Hawksbill Creek Agreement.

GB Power’s statement of claim argues that itself and the GBPA “have been vested with the sole authority to operate utilities”, including electricity generation and transmission and distribution, within the Port area until the Hawksbill Creek’s expiration in 2054. Cable Bahamas, too, also has a separate legal action con- testing URCA’s jurisdiction and authority to regulate its Freeport subsidiary.

Michael Pintard, the Opposition’s leader, yesterday predicted to Tribune Business that the Government will likely run into “significant resistance” from the GBPA, GB Power and others if the Bill seeks to impose URCA’s regulatory authority on the Freeport

energy sector especially given that outstanding litigation has not been resolved.

“To the best of my knowledge, the Government went down this road previously to assert that URCA had the oversight authority in the Port area,” Mr Pintard said. “I know that caused significant resistance by attorneys on behalf of the GBPA.

“I am confident that the Government is likely to be met with the same resistance if it is taking a decision to proceed with reconfiguring what the arrangement is in Freeport. GB Power is not regulated by URCA. URCA does not provide that oversight. That’s an old argument that has not been resolved. I would leave it to the courts to determine that.

“This is not an administration given to reasonable conversations with stakeholders and trying to be transparent on what they plan to do, and have reasonable conversations with them rather than carrying on like a bull in a china shop. That’s what this administration is doing.”

James Carey, the Grand Bahama Chamber of Commerce president, told Tribune Business that URCA officials had met with him several weeks ago and expressed that they were eager for the legal battle with GB Power to end so they can take over utilities regulation in Freeport.

“I’d had a visit from URCA several weeks ago and they were waiting for the [legal] process to complete because they were anxious to participate here,” he said. “URCA must have known this Bill was coming although they made no reference to it. Legislation is not drawn up overnight.”