The Bahamas Electricity Corporation is saddled with a very heavy list of accounts receivable, which is impacting its efficiency.
The government owes BEC $65 million and BEC has receivables in excess of $100 million. Government corporations like ZNS are not paying BEC for electricity, according to a high-ranking official at the electricity corporation.
The Bahama Journal has also learnt that while the government is supposed to pay BEC a certain amount of money annually for street lights, it has not been doing so in recent times.
According to the official, “BEC was improperly managed for many years,” and it appears that the government cannot afford to pay the corporation at this time.
He said individual consumers were ensuring that the corporation remained functional because they are forced to pay their bills or be disconnected, while some larger consumers like hotels and government agencies are not paying for electricity services.
The Wyndham Nassau Resort reportedly owes BEC $3 million. Pressure is now coming to bear on the hotel’s owner Phil Ruffin and his management team to pay their bill.
The hotel’s Chief Financial Officer David Wenn said today that he was not authorized to address such matters publicly. General Manager Robert Sands was out of town.
Hoteliers have long complained that utility costs in the Bahamas are far too high.
Prime Minister Perry Christie said at a press conference to announce the new board last year that his government must find a formula to cut back on labour and utility costs to enable the tourism industry to be more competitive.
Mr. Christie said one of the largest problems facing the corporation is the failure to maintain its equipment. He said this leads to the wasting of Bahamian tax dollars.
The Atlantis Paradise Island Resort is reportedly current in its payments to the corporation, but some other hotel properties owe a whole lot of money.
The accounts receivables problem is a burden that could slow the progress of BEC’s so-called new move to efficiency.
The new chairman of the corporation’s board Alfred Jarrett told the Bahama Journal that the problem was “mundane” and needed to be addressed from an operational standpoint.
Everette Sweeting, the corporation’s chief financial officer, did not comment on the matter.
The corporation’s accounts receivable problems could hurt any efforts to privatise.
During the board announcement, Mr. Jarrett said that BEC will be privatised before the end of Prime Minister Christie’s first term.
While stating that he did not want to be the chief spokesman on government policy, Mr. Jarrett told the Bahama Journal at the time that a proper privatisation plan for the electricity corporation will be in the works within two years.
“The thrust of my mandate is to prepare the corporation for privaitzation,” Mr. Jarrett said. “The privatisation of BEC is further away than [that of] Batelco, but it will happen under Mr. Christie’s watch. I will drive the process.”
The Bahama Journal
