ADDRESS BY HON. BRADLEY B. ROBERTS, MP
MINISTER OF WORKS & UTILITIES
WITH MEMBERS OF THE BAHAMAS HOTEL ASSOCIATION
AT THE HILTON BRITISH COLONIAL HOTEL
THURSDAY, 25 SEPTEMBER, 2003
President, Bahamas Hotel Association
Executive Chairman, Mr. Al Jarrett and other Board Members
General Manager, Mr. Bradley S. Roberts and other executives of BEC
Ladies and Gentlemen:
I am extremely pleased to be here tonight and to be able to share some of the new initiatives that are presently in the pipe line at Bahamas Electricity Corporation (BEC) with you.
The Government of the Commonwealth of The Bahamas of which I am a part is committed to ensuring that the Tourism Industry maintains its competitive advantage in the global market place.
Mindful of these factors, my Government will only make important decisions that will impact your livelihood after careful deliberation and open consultation with all stakeholders as I am so doing with you this evening.
To this end, my Government, since coming to power has taken serious note of the Bahamas Hotel Association’s inputs especially those related to economic realities, operational costs, and in particular, the high cost of utilities. To this end as indicated in my address to Parliament last week, the Government has moved to implement an across the board tariff reduction to all of BEC’s customers inclusive of Nassau/Paradise Island and the twenty- eight supply areas throughout the Commonwealth of The Bahamas effective 1 October, 2003. Further, for the first time in the history of BEC interest on security deposits will be paid at the rate of 3% per annum effective October 1st, 2003.
I should also note that there are several recent Family Island touristic developments that have resulted in BEC having to upgrade the existing plant and power transmission lines, and in some instances to install new infrastructure.
A few of these islands are:
EXUMA
ﾷ Emerald Bay, Four Seasons project, the first phase which is scheduled to be opened in November.
ﾷ The Crab Cay project where ground-breaking ceremony was recently held.
In Abaco
ﾷ The Cherokee Sound Peter De-Savory’s Carnegie Club at Winding Bay which is the initial stage of construction.
ﾷ The Guana Cay – Bullock Mannelly Partners Project.
Additionally projects have been announced:
ﾷ Eleuthera
ﾷ Rum Cay
ﾷ Bimini
ﾷ Mayaguana
ﾷ Crooked Island
I am therefore very pleased to have this opportunity to be a part of this meeting this evening, particularly to reaffirm the good news I announced in Parliament last week.
I also wish to thank you for the compliments paid to the Government headed by the Hon. Perry Gladstone Christie. I would be remised if I did not express my surprise at the statement attributed to the Manager of this hotel, Mr. Michael Hooper, who suggested that BEC’s electricity rates were four (4) times higher than those paid by Hilton Hotels internationally. I could only assume that that was an incorrect statement. Further, I provided an immediate considered response to the report prepared by Mr. Ralph Massey for the Tourism Task Force on the sector’s response to trade liberalization, and the beliefs of a so called Bahamian businessman on what a well managed power producer in the Bahamas could achieve on electricity rates.
The proper comparison for BEC’s rates has to be the countries of the Caribbean. It is unreasonable and unfair to compare large countries like the United States with a small island country like the Bahamas.
I wish to assure you that my Government has taken note of the other major concerns of your association, and in this regard we also intend to work very closely with you, the Hoteliers, and indeed all our stakeholders to ensure the efficient and reliable delivery of electricity. For example, our effort to inform the public through energy conservation tips will be intensified, and we also intend to set a unit to specifically deal with Demand Side Management, which includes various initiatives that will enable the consumer to conserve energy.
There is also the question of some consideration for compensation for persons who may be called upon occasionally to run their standby generation to assist BEC in meeting their demand. (Of course, this may necessary, in the foreseeable future because of the corporation’s recent initiative to install new generating plant).
As regards the Maximum Demand Charge this was taken into consideration, and the Corporation has decided to maintain the existing Maximum Demand Charge, however the Maximum Demand charge will be applied twice during the course of the year, as opposed to the current practice of applying it once per year.
With respect to the fuel surcharge volatility, we are still open to suggestions as how best to address this issue as this is influenced directly by World Wide Fuel Prices. However, we will continue to examine options, which will enable us to obtain more stable fuel prices. One such option is the benefits available to the Bahamas under the Caracas energy cooperation agreement which was signed on the 19 October, 2000. Just recently, the Government of the Republic of Trinidad and Tobago has kindly agreed to process crude oil supplied under that agreement by the Republic of Venezuela which will be available to the Government of the Bahamas at reduced prices for the benefit of public entities like the Bahamas Electricity Corporation.
I am pleased to announce that the Honourable Minister of Trade and Industry, Mr. Leslie Miller, will be traveling next week to Trinidad and Tobago in pursuance of putting in place the necessary mechanisms for the Bahamas to access the benefits under the Caracas Energy Cooperation Agreement. We look forward to making public the specifics of the benefits that will impact the cost of electricity rates for BEC’s customers.
Finally, I would like to state that during the course of the past year, BEC has done much to positively impact the quality and cost of electricity, but I will hasten to add that if the Corporation is to maintain the quality and price of electricity, it is very important for all customers to pay their electricity bills on time.
This will enable the Corporation to maintain the necessary cash flow, which will result in even better customer service, and the generation of funds to invest in new initiatives.
