The Tribune

By KYLE WALKINE

Tribune Staff Reporter

kwalkine@tribunemedia.net

CABINET is set to discuss fundamental decisions regarding the future of the Bahamas Electricity Corporation next week, according to Deputy Prime Minister Philip Davis. 

The minister of works, who also has responsibility for BEC, told The Tribune that the government has several crucial decisions to be made on the state-owned power company. He said those decisions cannot be made without careful consultation, which would explain the reason why the government has not finalised the BEC break up deal. 

“Some fundamental decisions are being made in respect to the energy reformation,” Mr Davis said yesterday. “We don’t intend to rush that decision. All of the pieces, we think, for an informed decision are now in place. Next week, it is scheduled that we meet with all our advisers to discuss those before Cabinet.”

Last August, Prime Minister Perry Christie announced the government’s plans effectively split BEC in two, by allowing one company to run the transmission, distribution and customer billing, while another company would offer power generation. 

Two weeks ago, Mr Davis told reporters the government would make a decision on proposals within two to three weeks as to who the two companies would be. 

“Nothing has changed,” he said yesterday, speaking of the companies in the running. “Those four companies are still in the running and we will be discussing those before Cabinet next week. Whether we are satisfied with our advice or not satisfied, then a decision would be made.”

It was reported this week that the US State Department’s 2014 Investment Climate Statement on the Bahamas noted concerns about BEC.

In that report, BEC was described as “challenged” and is “seen by potential local and international investors as an impediment to diversification and development of an alternative energy platform.”

The report said: “The corporation is the largest State Owned Enterprise (SOE) in the country and has recently accumulated losses of more than half a billion dollars. This debt has hampered its ability to independently fund the replacement of its decades-old plants and the necessary expansion to meet the needs of the country. These factors combined with the increase in global oil prices have resulted in energy prices in the Bahamas being among the highest in the hemisphere.”