In what is being termed an ‘earth-shattering’ step for energy in The Bahamas, the government has effectively announced its intention to break up the Bahamas Electricity Corporation (BEC).
Prime Minister Perry Christie revealed the launch of a process which is intended to lead to the liberalization of the entire sector currently controlled, for the most part, by BEC.
The government will now begin the hunt for private companies to both offer power generation in The Bahamas and to gain a management contract to take over transmission, distribution and billing of customers.
In a statement issued late in the evening, Christie announced the government will immediately be issuing new requests for proposal (RFP) which will facilitate the separation of the various components of the energy production and supply process.
The government intends to sign contracts with two companies by the end of the year to move ahead with ensuring that Bahamians have access to reduced cost electricity.
The form this arrangement will take will be akin to the role played by the Nassau Airport Development Company (NAD) at Lynden Pindling International Airport, according to a source close to the matter.
The government is aiming to have all proposals in by mid-September, Guardian Business understands.
It is then anticipated that amendments to the Electricity Act will occur in February 2014 to allow for the full liberalization of the generation, transmission and distribution processes.
As with the airport, while the government will still own the infrastructure, it will give up any role in the process of producing and distributing power.
