The Tribune

By FAY SIMMONS 

Tribune Business Reporter 

jsimmons@tribunemedia.net

RESIDENTS in Grand Bahama have “had enough” of rising costs on the island, especially with the island’s economy not being as “robust” as anticipated, according to the local chamber of commerce president.

Speaking to Tribune Business after dozens of Grand Bahama residents protested the Grand Bahama Power Company’s proposed 6.3 percent rate hike on Monday, James Carey, of the Grand Bahama Chamber of Commerce, said a potential electricity rate increase would have a damaging effect on the local economy as it would increase the cost of doing business.

Mr Carey said implementing a rate increase would propel the island into a “vicious cycle” of increased costs as businesses would be forced to increase the prices of their goods and services to maintain their bottom line.

“The residents and businesses are taking the view that they’ve had enough. It’s not simply a direct rate increase that affects them in their own power bill. It affects a lot of other things. If the supermarkets are paying more for electricity, the cost of food will go up a little bit. Its adding up and it’s a vicious cycle,” he said.

He highlighted that the timing of the proposed increase is particularly problematic as Grand Bahama has recently been “plagued” with frequent power outages and some residents have lodged complaints about damages to appliances damages due to power surges.

Mr Carey also noted that after Hurricane Dorian, the Grand Bahama Power Company was granted permission to apply a surcharge for restoration work, and there has been no update on when this surcharge will be removed.

“In Freeport particularly, we’ve been plagued with a lot of power outages, unusually so in recent times. So, to talk about a rate increase, it’s certainly not the best timing given the number of power outages and persons’ claims of having lost equipment,” said Mr Carey.

“After Hurricane Dorian, the power company had permission to add a surcharge for restoration of the outside power plant, laying poles and lines to East Grand Bahama. That’s still in effect, I believe, and there’s no talk about when that comes off. So, the impact is there, obviously.”

He said although the Grand Bahama Port Authority and the Davis administration have boasted of the $2bn worth of investment slated for the second city its impact is not being felt by the community.

He explained that most of the investments such as the Grand Bahama Shipyard expansion will not result in direct spend on the island and the economy is not as “robust” as expected.

“Persons have just had enough and Grand Bahama although there are promises of things moving ahead, and it was moving a bit, but it’s just not resonating where it is impacting the economy that much all at once,” said Mr Carey

“I hoped that things would be more robust by now. There was a promise of things being robust. The Port Authority continues to talk about the 2bn in investment that they have secured. A lot of that 2bn won’t be spent on the ground in Grand Bahama. Things like the Shipyard included in that were a substantial part of that investment is the acquisition of new dry docks, which will be spent elsewhere.”

He argued that although the Prime Minister, Philip Davis has indicated that the ongoing dispute between the government and the Grand Bahama Port Authority has not had an effect on investor confidence it has affected the island’s growth.

“I don’t think this spat between the government and the Port Authority is helping any. I think the Prime Minister indicated the other day that it’s not making any difference. I beg to differ. I think it is caused some persons who may have been thinking Grand Bahama to pause. I don’t think they’ve gone away, but it all impacts the economic trending upwards that we hoped would be taking place by this time.”

Grand Bahama’s electricity supplier managed to unite politicians of both parties in opposition to its application for approval by the Grand Bahama Port Authority (GBPA), its regulator, despite asserting that light bills for 75 percent of its customers will either remain unchanged or enjoy a slight decrease due to the base rate hike being offset by reductions in the fuel charge.

The matter has set the stage for a clash with the central government as it purportedly conflicts with the Utilities Regulation and Competition Authority’s (URCA) regulations. In July, the Davis administration amended the Electricity Act to clarify that URCA is responsible for regulating utilities nationwide.

The Davis administration has firmly rejected the proposal, asserting that it violates the law. Meanwhile, the port authority indicated that related conflicts are currently being addressed in the Supreme Court.

Fred Mitchell, minister of foreign affairs, PLP chairman and Fox Hill MP, said yesterday it is “very curious” that the Grand Bahama Port Authority is considering the request as they are currently engaged in court proceedings.

Mr Mitchell asserted that central government is the only “sovereign power” and is within its rights to pass laws for all entities within the Bahamas to follow.

He said: “It’s very curious to me that people who have lawyers who instruct them should know better. There’s a case which is before the courts right now. That case the judge has to decide the issue of jurisdiction.

“The law, from our point of view, is quite clear. The Constitution gives parliament the power to pass laws for the good order and peace of the Commonwealth of the Bahamas. There is not a sub-sovereign power. There is not a competing sovereign power.

“That issue is settled, there’s only one sovereign power. That power resides in Nassau and in the parliament in Nassau, not in Freeport, in the Grand Bahama Port Authority.”

Mr Mitchell said it is “clear” that URCA is the regulator for the electricity sector as mandated in the

Electricity Act 2024 and he is of the opinion that consumers should file an injunction against the port authority considering the rate increase.

He said: “The law has been passed. It is clear that URCA has the jurisdiction the Grand Bahama Port Authority has licensing authority, but they do not have the power meaning to give you a business licence to operate Freeport, but they do not have the power to regulate power supply and the cost of power supply, because that vests in URCA.

“Now I started out by saying there’s a court case now, they should not have commented on it. They should have declined the jurisdiction until that case is settled. My own view is some individual consumer in Freeport should simply injunct the Grand Bahama Port Authority right now from considering this matter, because it is improperly before the Grand Bahama Port Authority.”