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WEDNESDAY, AUGUST 7, 2024
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GB Power: 75% won’t see bills increase despite base rate hike By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THREE-QUARTERS of Grand Bahama Power Company’s customers will see their monthly bills remain unchanged or decrease by up to $2 despite its bid for a 6.3 percent base rate rise, it was revealed yesterday. Dave McGregor, president of the island’s energy supplier, told Tribune Business that reductions in the fuel charge component of electricity bills will “offset” the proposed base rate hike for most should it be approved by the utility’s regulator, the Grand Bahama Port Authority (GBPA). Explaining the rationale for the increase, which was submitted to the GBPA on August 1, 2024, in accordance with GB Power’s regulatory obligations, he said the extra revenues generated by the increase will help to finance a 67 percent jump in GB Power’s annual capital investments to $20m per year between 2025-2027. The extra investment, Mr McGregor told this newspaper, would facilitate the increased integration of renewable energy into GB Power’s grid
• Pledges fuel cost drop to ‘offset’ 6.3% rise bid • Utility’s annual investment to rise 67% to $20m • PharmaChem closing eliminates 5% of demand
GRAND BAHAMA POWER COMPANY HEADQUARTERS through the deployment of a batter energy storage system (BESS) that is expected to be installed and operational by 2026. Asserting that the utility has “tightened the belt as best we
can”, he said this had enabled it to apply for a base rate increase one full percentage below the 7.3 percent inflation suffered by The Bahamas over the past three years covered by its present tariff structure.
Disclosing that GB Power had lost 5 percent of its total demand in January 2024 with the closure of PharmaChem Technologies pharmaceutical plant, while the total electricity load consumed by the island’s major industrial customers has “under-performed”, Mr McGregor voiced optimism that the utility is “out of the woods” after resolving the outages that plagued early summer. And, while the latest rate application comes at an especially sensitive time for relations with the Government, given that Parliament recently enacted an Electricity Act that seeks to circumvent the GBPA’s ability to regulate electricity in Freeport, the GB Power chief said it was best to “let the courts figure that out” in a reference to the utility’s legal action over who has the legal authority to supervise it. GB Power’s new rate application, which covers the three-year period between 2025-2027, generated opposition and criticism from both sides of the Bahamian political divide when it was unveiled yesterday, as well as provoking
SANDALS EMERALD BAY
Pintard: ‘Deep concern’ on $100m Beaches revelation By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Opposition’s leader yesterday said he was “deeply concerned” that only the Government - and not Sandals itself - has publicly confirmed specific details on the Emerald Bay resort’s $100m redevelopment. Michael Pintard told Tribune Business he and his party have been informed by “persons working on the property” in Exuma that they are not confident it will re-open as a Beachesbranded resort within the six-to-eight month timeframe given by Chester Cooper, deputy prime minister and minster of tourism, aviation and investments.
Again questioning whether there was a link between the Beaches announcement and revelations that Sandals is embroiled in a $30.844m tax dispute with the Government over the Emerald Bay property, he asserted in a statement that “there has yet to be an official reopening timeline, and the application and permitting process for the resort’s redevelopment into a Beaches Resort has not even started”. This statement, based on unidentified sources, aligns with information provided to Tribune Business by its own contacts. Speaking on condition of anonymity, they suggested that plans for the Beaches conversion have yet to be fully
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Investor needs rezone to secure $5.6m investment By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net AN INVESTOR will tonight seek to secure his $5.6m south western New Providence purchase at a hearing to rezone a property that two government agencies assured him was for commercial use. Abdoulaye Fadiga, a world-renowned Thai boxing world champion from France, and president of Rose In Atlas, is seeking
Town Planning Committee approval to rezone ten acres near the western side of South Ocean Boulevard from ‘residential’ to ‘commercial’ to facilitate the development of an outdoor fitness facility. In documents filed with the Town Planning Committee, he revealed that he acquired the site after being informed by both the Bahamas Investment Authority (BIA) and the Department of Inland Revenue, as well
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GRAND Bahama Power Company’s proposed 6.3 percent base rate increase was yesterday branded as “absurd” and “wholly ill-conceived” given the potential impact on residents and businesses. The island’s electricity supplier managed to unite politicians of both parties in opposition to its application for approval by the Grand Bahama Port Authority (GBPA), its regulator, despite asserting that light bills for 75 percent of its customers will either remain unchanged or enjoy a slight decrease due to the base rate hike being offset by reductions in the fuel charge. “It is absurd to even consider another rate increase at this time,” blasted Kwasi Thompson, the Opposition’s finance spokesman, to Tribune Business. “Let’s put it this way: The Port Authority and the Government should categorically reject it and deny it. “It is absurd for the Power Company to make the
PETER GOUDIE
Hotel chief: ‘No real difficulty’ going to fourday work week By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
application, and most certainly it should be denied by the Port Authority and categorically denied by the Government. Pointing out that Grand Bahama’s economy continues to struggle, with its economic output hitting a nine-year low of $1.53bn in 2022 before recovering slightly to $1.546bn in 2023, the east Grand Bahama MP said the move was especially ill-timed. “All the people of Grand Bahama have experienced is inflation, the high cost of living, rising boat fees, increased VAT on bread basket items and rising aviation fees,” he added. “It has been additional fee after additional fee. The application should be outright denied. It is absurd to even consider it.” Mr Thompson’s stance was echoed by Ginger Moxey, minister for Grand Bahama, who argued that GB Power should review its application based on “the hardship faced by Grand Bahamians and the unreliable performance of GB Power since the last increase.
THE Bahamas Hotel and Tourism Association’s (BHTA) president yesterday said he foresees “no real difficulty” with a four-day work week as employers generally gave mixed reactions to the idea. Robert Sands told Tribune Business much work and negotiation was required before such an arrangement is implemented in The Bahamas so as not to unduly burden the private sector with further excessive cost increases, but he did not dismiss the proposal. Pointing out that adopting a four-day work week would require employees to work four ten-hour days to meet 40 hours for the week, instead of five eight-hour days, he said one required compromise would involve trade unions agreeing not to demand pay “in excess of the standard rate” for those two extra hours per day to minimise the employer cost burden. “I think there are a number of things that have to be taken into consideration in a four-day work week,” Mr Sands told this newspaper. “In my opinion, it can work if persons work their 40-hours in ten hours per day. For quality of life issues for people with young families, having three days’ off makes a lot of sense in a world where family issues are not as strong as in the past. “I see no real difficulty with a four-day work week. It has implications in terms of the understanding of trade unions and so forth. Where there are hours worked in excess of the standard hours, you are not paying in excess of the standard rate, for example. There’s a lot of negotiated situations. “All these things have to be worked out in such a way that companies are not paying a premium for such an approach. When work-life balance is being brought to bear, I see that as being a positive in the workplace and something that can be supported with all the stakeholders,” he added. “It’s a question of management. It’s just managing your scheduling accordingly. As long as those hours are still being covered they can still be included under these types of arrangement.” However, Debra Symonette, Super Value’s president, was less enthusiastic about the merits of a four-day work week and suggested its implementation would not be practical for food store chains.
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Opposing politicians united on ‘absurd’ GB Power rate hikes By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
ROBERT SANDS