The Tribune

EDITOR, The Tribune.

Please permit me to comment on an article appearing in your newspaper on the Prime Minister’s comments regarding the delay it is taking the government to make a decision on the restructuring of BEC.

This delay, he says, is due to his desire “to make sure that any government decision made is in the best interest of the country.” He added that “any company that takes over management of BEC is expected to have the capacity to provide electricity for the Family Islands. This involves the use of alternative energy methods, including solar, wind and wave technology”.

In the same article, he indicated “that there is EMERA in Grand Bahama and FOCAL (Freeport Oil Company) who have expressed an interest in the proposal and who have indicated that they could match any offer.”

Is he suggesting that after 18 months delay, the government is willing to delay this crucial initiative further to entertain these two companies who presumably, after all this time is just now expressing an interest?

And is he suggesting that, after all proposals have been considered, EMERA and FOCAL would like to have an opportunity to match the best offer submitted by other participants? What a privilege.

This exercise has been conducted with such a lack of transparency and has been delayed so many times that one is left to wonder whose interest the government is really seeking to serve.

Is the delay in making a decision due to the government being distracted by selfish political interest?

Looking out for the country’s (national) interest

If the government is truly interested in ensuring that the country’s interest is best served in this undertaking, I find it difficult to rationalise how such will be achieved if FOCAL is considered to be the preferred group.

As far as I am aware, they are in the business of operating service stations.

I am not aware of any experience or expertise they possess in managing and or distributing electricity on behalf of any electricity generating company.

If selected, they more than likely would go out and partner with or sub-contract a company to provide the service. In other words, they will go out and purchase the expertise. This in and of itself is not unusual for an organisation to do.

But, if FOCAL can purchase the expertise and form a partnership, so can the Government as was done at the airport under the arrangement with NAD. (This is not to suggest that I find the entire arrangement with NAD to be without some concern).  

Unless they (FOCAL) can find a more attractive arrangement than the government, and I would be surprised if such is the case, selecting (FOCAL) adds little or no value to the final product.

Furthermore, considering that FOCAL is heavily invested in the gasoline business which is derived from fossil fuel and fossil fuel being the main source of fuel consumed by BEC, the government ought to be concerned that they (FOCAL) may not be sufficiently motivated to explore other forms of alternative energy methods at the expense of their other gasoline interests.

This is potential conflict that ought to be considered in determining the suitability of any proposal by FOCAL.

EMERA

In Grand Bahama, there have been complaints by residents and businesses due to the high cost of electricity and the billing practices of EMERA. These complaints mirror that which is made about BEC here in New Providence.

There have also been complaints about excessive pay executives at the EMERA are receiving. In response to these complaints, however, EMERA have indicated that no portion of their executives’ compensation, including salary and incentives, is paid for by Grand Bahama ratepayers.

Whatever the case may be and wherever the truth lies any relationship with EMERA should be pursued with caution as they too have had their share of problems in providing Grand Bahama with electricity at rates consumers find palatable.

Conclusion

The Government is fully aware of the negative impact BEC’s unreliable service and the high cost of its electricity is having on residents and businesses.

To delay this exercise further for the apparent reason being, to talk to these groups (EMERA and FOCAL), does not speak well of how this exercise is being managed or the government’s desire to bring about improvements.

By now, the Government ought to have been beyond the stage of having to entertain new entrants and should now be in final discussions with the selected managing group with the relevant expertise and experience.

If it is truly the Government’s intention to make a decision in the best interest of the country all it needs to do is make a decision based on the information and recommendations presented for its consideration.

And, if the proposals received thus far are unacceptable to the Government, they ought to reject them and advise the public accordingly, and move on.

For the benefit of the Prime Minister and his Government, I end with a quote by Theodore Roosevelt: “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing and the worst thing you can do is nothing”

CLAUDE B HANNA

Nassau,

March 7, 2015