With the Bahamas Electricity Corporation (BEC) unilaterally deciding to hike its fuel surcharge to consumers effective April 2003, resulting in higher electricity costs to all, the Bahamas Coalition for Consumer Education (BCCE) sees the need to inform local consumers, consumer advocates and their groupings, the Public Utilities Commission (PUC), the Minister of Trade and Industry and the Prime Minister of The Commonwealth of The Bahamas, of the events that influenced the adoption of The Public Utilities Commission Act, 1993, by the Parliament of The Bahamas.
Go back with us if you will, to the time period 1988-1989. The late Sir Lynden Pindling, former Prime Minister of The Bahamas has recently introduced The Bahamas' first and only Ministry of Consumer Affairs, with Dr. the Hon. B.J. Nottage as its first Cabinet Minister. BEC unilaterally decides that in order to improve its cash flow it was going to discontinue quarterly billings, introduce monthly billings for consumers, and also increase its rate of electricity supply. Local consumers are up in arms, especially when their monthly billings in some instances, work out to be just as much or higher than their quarterly billings for electricity supplied by the state monopoly BEC.
The Bahamas National Consumers Union (BNCU) lead by a number of consumers advocates, including President Lavade Darling and advisors, then Senator K. Neville Adderley, Dr. Peter Maynard, and Franklyn G. Ferguson, were very instrumental in directing public displeasure with the actions of BEC. It was also during this period that suppliers of propane gas wanted to increase the cost of a 100lb cylinder from $40.00 to $50.00.
Then Minister Nottage was forced to hold town meetings to allow public debate on the unilateral actions of BEC effecting drastic changes resulting in hardship to ordinary Bahamians. The BNCU strongly advocated for the establishment of a Public Utilities Commission, mandated to regulate and oversee the operations of all public utilities operating in The Bahamas, and to see to it that interest was paid on consumer deposits being held by these public utilities.
This historical genesis of the PUC is being given principally to show that it was the actions of BEC, more so than any other public utlility, that were primarily responsible for the call by the BNCU, on behalf of Bahamian consumers, for the establishment of a Public Utilities Commission, and the passing of the Public Utilities Commission Act, 1993, by the Parliament of The Bahamas, under the former Free National Movement administration. In all fairness to the PLP administration of 1987-1992, it should be noted that this administration did draft a PUC Bill, however, it was the FNM administration that provided the appropriate statutory provisions. It is interesting to note however, that the FNM administration decided to intertwine the implementation of the Public Utilities Commission Act 1993, with that of the Telecommunications Act of 1999. And this, only after the assent of An Act To Amend The Public Utilities Commission Act, 1993, on January 31st 2000. The provisions of the PUC Act of 1993, as amended in January 2000, by the Parliament of The Bahamas, did not commence or were not implemented until March 9th 2000, and then under some very curious conditions made by former Prime Minister, the Hon. Hubert A. Ingraham.
The amendments of 2000, makes it clear, under section 2 (b) that the "Minister" means the Prime Minister. However the amendment that the BCCE has the most difficulty with, one that undermines the effectiveness of the Public Utilities Commission, frustrates the intentions of the Parliament of The Bahamas, and is a great disservice to all Bahamian consumers, is that provided for in Section 3 subsection (3), namely:
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'Notwithstanding any other law the functions of the Commission in relation to any utility service shall commence only on such date as the Minister may by Notice in the Gazette appoint.'
By only gazetting the functions of the PUC in relation to Batelco, now the Bahamas Telecommunications Company, Hubert Alexander Ingraham, has effectively transformed, contrary to the intentions of the Parliament of The Bahamas, the Public Utilities Commission of The Bahamas into a Telecommunications Commission, as the PUC has no legal jurisdiction to implement any and all other aspects of the Public Utilities Commission Act, save those related to telecommunications.
Therefore, what The Bahamas now has is a Telecommunications Commission masquerading as a Public Utilities Commission.
Judith Smith, Legal Counsel for the PUC, recently inquired of the BCCE, via letter to the editor of our official publication Consumerism Today, why the PUC had not received any input from the BCCE relative to the public consultation activities of the PUC in relation to our local telecommunications industry and operators.
Our response is simple. The BCCE has nothing but disdain for the PUC as presently structured and empowered. It is an insult to Bahamian consumers and is not the entity that the BNCU and consumers advocated for. We realize and accept that these conditions and shortcomings have nothing whatsoever to do with the competent staff and leadership of the PUC. However, the BCCE cannot give credibility to a Public Utility Commission whose mandate limits it's functioning exclusively to telecommunications issues.
BEC has unilaterally once again, decided to increase its rate of electricity supply to Bahamian consumers. Today (March 12th 2003), the General Manager of BEC, Mr. Bradley Roberts, was on a local talk show attempting to justify imminent increases in electricity to Bahamian consumers, bypassing the PUC. If The Bahamas had a fully functional Public Utilities Commission, BEC would have been required to present its case to the PUC if it wanted to increase its rate of electricity supply, not to the Bahamian people. This is the way it is done in every country of the world that has a Public Utilities Commission, except The Bahamas. Even if the PUC were to grant the request, at least a process would have been followed, and Bahamian consumers would know that their interests and concerns were considered in the final decision. Sadly, this is not now the case in The Bahamas. The PUC Act of 1993 provides for it, but Hubert Alexander Ingraham has sabotaged those provisions under section 3 subsection (3) of the amendments of 2000 previously referred to.
One other salient point that further illustrates the danger and detriment to consumers of a dysfunctional PUC especially as it relates to BEC, is the many examples of gross inefficiency at this public utility. We are of the view that the many occurrences of load shedding and blackouts are results of the inefficient functioning of BEC. Transformers seem to only be repaired when they are almost burned out due to lack of proper maintenance. We are also concerned about the environmental impact of the operations of a sub-standard Bahamas Electricity Corporation. The public has no reason whatsoever to have any confidence in any internal investigations of BEC as it relates to efficiency and best environmental practices. This is the role of the Public Utilities Commission. The Parliament of The Bahamas has provided for it. Unfortunately, the intentions of Parliament in this regard have been sabotaged.
On behalf of Bahamian consumers therefore, we appeal to Prime Minister Perry Christie, to gazette all of the provisions of the Public Utilities Commission Act 1993, with the amendments of 2000, thus giving The Bahamas a fully functional PUC of which all Bahamians, inclusive of the Parliament of The Bahamas, can be rightly proud.
Bahamas Coalition for Consumer Education (BCCE)
