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Miller: BPL deal was a mistake

Leslie Miller

Leslie Miller

By RICARDO WELLS

Tribune Staff Reporter

rwells@tribunemedia.net

TALL Pines MP Leslie Miller yesterday admonished the Christie administration for surrendering the day-to-day management of Bahamas Power and Light (BPL) to PowerSecure, insisting that the move could hurt the Progressive Liberla Party (PLP) in the next general election.

Mr Miller spoke to The Tribune as thousands of Bahamians were left without electricity yesterday due to “outage rotations” by BPL to help offset the fact that corporation could not meet customer demand.

“They criticised us when we were there but we had it right,” Mr Miller said, referring to his time as chairman of the Bahamas Electricity Corporation, which was later renamed BPL.

“We had a plan for these summer blackouts and were executing it; by June we were going to have the cost of electricity down to 26 cents per kilowatt-hour. We had a agreement in place to purchase oil at $30 per barrel but we got stopped dead in our tracks because these foreigners thought they knew better.

“We had a plan in the works to have a fully operational 128 megawatt plant up and running by June of this year, we had the financing and a guaranteed loan from the National Insurance Board.”

Mr Miller said these plans were halted once the government decided that it would be better served by passing off the management of the corporation to the American firm.

“And they say they ‘believe in Bahamians’. The (management transition) was not necessary, the corporation is moving backward, but that’s ok, God don’t sleep. Election coming,” he told the Tribune.

Band-Aid approach

BPL, in a statement around noon yesterday, acknowledged that it was experiencing “generation challenges” at its power stations.

As a result, the corporation implemented a two-hour outage rotation schedule.

The move was also meet with contempt by former State Minister for Environment Phenton Neymour who suggested that the “Band-Aid like” fix has brought no resolution to the long-standing issues at the corporation.

Mr Neymour told The Tribune the government has intentionally misled the public on matters relating to BPL, despite knowing from the onset that the energy generation area of the corporation was operating on a “wing and a prayer”.

In addition to accusing the PLP of shamelessly adopting a scheme it had previously criticised, the former South Beach MP suggested the Christie administration was being disingenuous over what was spurring the recent rate reduction in power bills across New Providence.

Mr Neymour revealed that sources within BPL have noted the failure of one of its major generators at the corporation’s Blue Hill Road Power Station.

He alleged that the government, through the management of BPL, has entered into leasing agreements with foreign companies to rent out additional generators to offset the loss.

The Free National Movement (FNM), during its last stint in office, rented a number of generators to help with the load demands of New Providence.

In August, 2014, Mr Miller, then BEC chairman, said the FNM paid $750,000 a month to rent the generators, lamenting that the party would have been better served constructing a new plant at Clifton Pier.

“Instead, they spent money on that and on putting up plants in Family Islands like Abaco, Eleuthera and Bimini when those islands didn’t need them. If (Mr Neymour) was on top of everything like he tries to seem, he would have made some effort to try to put up a new plant in New Providence where it was necessary,” Mr Miller was quoted as saying.

Meanwhile, Mr Neymour yesterday scoffed at the fact that less than two years later this administration is in a similar situation.

“When I was in charge of BEC I went to the public, I was honest, I explained detail by detail why BEC need to raise its rates. I was ridiculed by the entire PLP. If they had stuck to the plans we had implanted at that point BEC would have been on a better footing,” Mr Neymour said.

“They are being deceitful on multiple fronts at the moment. Essentially BPL is relying more on rental generators now, than it is on the generators it owns because those generators (the ones owned BPL) are in such poor condition.

“That is why I stated it two years ago, the way in which the government is running BEC/BPL was unsustainable. They got breaks on fuel, dropping from $100 per barrel when we were in office to $30 per barrel recently and it has stabilised at $50 per barrel.

“They should have come honestly and told Bahamians as I attempted to do. Instead, the PLP perpetuated that the rate decreases were because of them. Attempting to deceive the people.

“How is it that they found a way to lower the rate and now there are rumblings about a rate increase? If this goes through, when one would have added all the smaller aspects of their bills - base rate, fuel charge, Value Added Tax and this new bond fee - electricity would be more expensive than it ever was under the FNM.”

Earlier this month BPL CEO Pamela Hill wrote a letter to customers detailing the need for a rate increase, suggesting that the company was unable to meet its responsibility due to the lack of finances to expand and develop its services.

It was later reported that Cabinet denied this request.

Comments

B_I_D___ 7 years, 10 months ago

He nervous he gonna have to pay!!

“She made the comment that they’re really clamping down on friends, family and lovers,” Mr D’Aguilar told Tribune Business.

“Those who have political connections and insider contacts, and are simply not paying their bill because they don’t have to. They’ve clamped down on that.”

Tribune Business understands that BPL’s ability to cut off non-paying customers with significant arrears, especially government departments, agencies and buildings, was one of the ‘sticking points’ that held up the signing of PowerSecure’s management contract.

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Well_mudda_take_sic 7 years, 10 months ago

Will someone (Christie?) please put this looney tune musical monkey back in his box? We've all had quite enough of this "woman slapper". We can only hope and pray that Miller and his family enterprises are disconnected by BPL for non-payment of their electricity bills. Christie originally put this a_ _ hole Miller at BEC so that he could buy votes for the PLP by providing free electricity to favoured PLP supporters and their family and friends.

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John 7 years, 10 months ago

PISS ON THIS GOVERNMENT! While this government is bragging about how much additional taxes they are collecting, do you realize that more than half the anchor projects that received tax breaks and government concessions are at a stand still or are shut down. Start with Bah Mar in Nassau, Ginn in Grand Bahama, the project in South Eleuthera, the Mayaguana project, Bimini is pulling back its throttle, just to name a few. So where is all the additional taxes coming from? Struggling Bahamians! Bahamian businesses are being taxed out of existence and poor Bahamians are being taxed in to starvation, not to mention BPL! And the foreigners who have gotten all the concessions and all the tax breaks have taken the high road or are sitting on their hands. Chilling. How can a government justify even thinking about giving Bah Mar additional concessions when they have already received gifts of land and taxes in excess of $1 billion? How can this government justify extending the agreement with the port authority in Freeport when there has been no major development in Freeport in 10-15 years? No new infrastructure. And the cost of living for poor black Bahamians on Grand Bahama is higher than most places in the Bahamas. And most of them are unemployed. The foreigners are taking the tax breaks to enrich themselves and are disenfranchising legitimate Bahamians. This country cannot progress while this cock-eye, pocket stuffing government continues to give away the country to foreigners and continue piling tax after tax after VAT on poor struggling overburdened Bahamians! Now we have to contend with this BPL scam where they cannot keep your lights on and where they are coming around every two weeks to disconnect your power. Cry shame

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Reality_Check 7 years, 10 months ago

Very well said my friend. Many of us share your anger and frustration and its all getting ready to boil over....and we know what that means.

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Regardless 7 years, 10 months ago

....what credibility The Bahamas had is now gone. Investors and resort operators would rather deal with a communist regime in Cuba. Get used to it. When Brookfield finds a buyer for Atlantis, they will cut their losses and catch the first flight out.

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Calypso 7 years, 10 months ago

If we keep politicizing these situations we will get NOWHERE. When will Bahamians learn that the only way to facilitate meaningful progress and change is through COOPERATION. It does not matter who comes up with the idea so long as the idea advances all Bahamians together. Our MP's act like children and it is a sickening reality that cannot continue!

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watcher 7 years, 10 months ago

Miller is being disingenuous when he says that this was a mistake. We all know that the infrastructure at BEC is old and decrepit, something Miller would have been very well aware of when he was Chairman. Blaming Bpl is like me having a 1989 Hinda Civic, and when I lend it to my brother to drive, it breaks down. Should I get mad at him, who just happened to be driving my 27 year old car when it finally konked out, or should I blame myself for not getting a more recent vehicle?

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John 7 years, 10 months ago

Bull$hyt watcher!!! BPL had the opportunity to do due diligence and, in fact they charged us, the Bahamian taxpayer $1million to do it. They are greedy dogs who have raped Bahamians in Grand Bahama for over 30 years, now their thirst for (blood) has brought them to New Providence. New innovations, new fuels and new technology have power companies around the world producing so much energy that they have to give it away. But the greedy dogs prey on the Bahamian consumer. And our politicians invite them, support them and entertain them here, to grease their pockets, at the expense of the Bahamian taxpayer and consumer...and ignorant sympathizers, like you, encourage them

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Economist 7 years, 10 months ago

Note: "we had the financing and a guaranteed loan from the National Insurance Board"

There will be no money (cash) in NIB because these pirates have looted it all.

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Publius 7 years, 10 months ago

I didnt bother reading his comments since he will be retracting them soon no doubt. Why waste the brain space I say.

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dstewart242 7 years, 10 months ago

This man is full of hot air. He always has something to say. At least this company has the decency to tell its customers that there will be blackouts and which areas will be off at which times. Although it is not ideal during the summer we all will know when are area will be without power and so we can go somewhere else until the power comes back on. The problem is those generators are outdated. It is 2016 we have been dealing with this problem for years. How can Leslie miller say he has the solution when during his time as chairman, we were still facing the same problems. Those generators need to be replaced. We need to look at alternative methods to producing electricity and not depend on those old, outdated diesel generators

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John 7 years, 10 months ago

The major expense to BEC is fuel. Over the past three years the price of fuel has gown down from $160.00 a barrel to $40.00 a barrel. In face by Leslie Millers' admission BEC had an agreement to buy bunker at $30 a barrel (people probable giving it away because is is becoming an obsolete fuel and even being banned in some countries. So since BEC never reduced its prices to consumers until recently, they should have realized enough savings on fuel and enough surplus revenue to pay off all its debts and upgraded its plant, at least in New Providence with more efficient and more eco friendly and more reliable equipment. So why did this not happen? Is this BPL plan to increase power rates and the government claim "o but we stopped them, just another game of smoke and mirrors. What short term plan was put in place to avoid load shedding this summer? What if Bah Mar was up and running ? Is there sufficient power even after all the delays? A company that realizes a 75% reduction in the cost of its major input cannot fix itself after three years? And is looking for a price increase? Please lower the Bahamian flag and let's start over!

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DreamerX 7 years, 10 months ago

BEC has ran on a consistent loss for the past 4-5 years. Fuel costs are not largest expense. it is the largest P&L item due to presentation. Fixed Assets and non-write off but functionally written off assets understate expenses.

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ThisIsOurs 7 years, 10 months ago

Why did the price of oil take so long to go down but then suddenly, almost before we had a chance to realize it was down, it's going up again?

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Required 7 years, 10 months ago

Of course if they had left Leslie in charge, all would be good now. And should BEC have ever quit on us again, Leslie would have given every household a treadmill that creates electricity, powered by unicorns.

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banker 7 years, 10 months ago

Anyone know how his bowling alley is doing?

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John 7 years, 10 months ago

@ Deremer X. So what are you saying is BEC's largest annual expense...we're waiting

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John 7 years, 10 months ago

The price of oil is a phenomen that is a result of economic manipulation. There is a glutton of oil on the market because non of the oil producing nations are willing to cut back on production. Countries like Venezuela have gone bankrupt because of $30.00 a barrel oil. So what the oil companies (refiners and distributors) are saying is that it is costing them more to refine and distribute gasoline and gas products hence the increase in the prices. So while Venezuela and other countries and receiving little or nothing for their oil, gas companies are trying to push gas prices up to what they were when oil was $160 a barrel. If they are successful, getting gas up by even one dollar a gallon, Companies like Exxon make record breaking profits again at the expense of the consumer and the oil producing nations.

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SP 7 years, 10 months ago

............ Trusting the PLP "Bahamians First" promise was the "REAL MISTAKE".........

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