The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A top private sector executive has urged the Government to relinquish ownership of the Bahamas Electricity Corporation (BEC) once the cash-strapped entity is turned around by its new manager.

Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, also warned that Bahamian consumers should not be given “false hope” they will see an immediate reduction in electricity costs.

The Government last week announced it had has selected North Carolina-based PowerSecure International as the new management company for the Bahamas Electricity Corporation, and will complete a five-year contract for it to oversee generation and transmission/distribution operations.

Mr Bowe told Tribune Business that with the selection process now complete, it was important that BEC’s restructuring move forward quickly. “I think the hurdles have now been cleared as it relates to the selection,” he added.

“It is important we see that all is done to ensure the management contract is signed, and that we can see that the investment and restructuring takes place as quickly as possible. I think it was stated that a certain energy cost reduction is to be expected. I think it is important to not give false hope that that is immediate because that is going to come over a period of time.”

While addressing the BCCEC’s Energy Security Forum last December, Deputy Prime Minister Philip Davis said the Government wants Power Secure to guarantee a more-than 30 per cent reduction in energy costs within 24 months.

“I think persons would be most concerned with understanding how the overall transition is going to play out as it relates to the rate reduction bond, and how that will be factored in because that has been discussed in terms of reducing the corporation’s debt,” Mr Bowe said.

“ The investment in new equipment; the use of fossil fuels or renewable energy sources; and the timeline for seeing the fruits of the labour from the perspective of what would be going down the pipe to improve quality of service and reduce the cost to the end consumer.

“Consumers and businesses alike would like to know how quickly the benefits will be seen,” he added. “I think ultimately the Government, once it has turned the actual enterprise around, should consider divesting itself of ownership.

“The airport and others are critical gateways, and you’re not really going to have competition with an airport, so the Government holding something like that makes sense. But when we talk about telecommunications, electricity and utilities, the expectation is that over time there will be an element of competition.”