By SANCHESKA DORSETT

Tribune Staff Reporter

sdorsett@tribunemedia.net

WORKS Minister Desmond Bannister said while it is unfortunate that consumers have seen a significant increase in their Bahamas Power and Light bills because of “faulty machinery,” the government cannot continue to absorb the cash strapped utility provider’s expenses.

Mr Bannister told The Tribune that BPL has a “huge legacy debt” and unfortunately the cost will have to be passed on to the public “directly or indirectly”.

He was responding to the Central Bank of The Bahamas’ monthly report that revealed that BPL’s fuel charge increased by 8.3 per cent to 13.7 cents per kilowatt hour (kWh) on a monthly basis, and by 49.7 per cent when compared to May 2016.

In a statement, BPL explained that an increase in bills for the month of May was also caused by its reliance on engines at the Blue Hills Plant, which uses more expensive fuel than the Clifton Power Station.

“I could understand consumers being angry at the increased cost because the service is unreliable and the price is high but that is the reality of what is happening at BPL,” Mr Bannister said when asked for comment.

“BPL has to pay their way by whatever means necessary, which means the cost has to be passed on to customers. The government cannot afford to continue to subsidise electrical power but we have to be able to provide reliability and to ensure the machinery is working. In order to do that the cost has to be passed on.”

Mr Bannister said he understands that “times are hard” but whether Bahamians understand it or not, either “you pay BPL directly or you pay through our taxes.”

“We have not upgraded our equipment in a long time and now it is telling on us. We need customers to bear with us because we have a plan and we will put systems in place,” he said.

“These are difficult and hard times but the question is, do you want to pay it now to the company or pay it later through taxes? So, no matter how you look at it, the customer will still pay for it. You pay one way or another, this time you are paying directly and it is easier because this way you are paying for only the electricity you use and not for someone else’s. “BPL has a huge legacy debt and it is difficult to operate the corporation with that hanging over its head. Hopefully with this new board, we can find a way to lower the price to consumers and get BPL to run efficiently.”

On Monday, Mr Bannister revealed that the new BPL board would be in place on Wednesday and said the group’s first priority is tackling the utility provider’s “inability to keep the lights on.”

In an interview with The Tribune, Mr Bannister confirmed that the new board was selected, but said Cabinet will have to release the full list of names to the press. The Tribune understands the board’s new chairman is Darnell Osborne.

Mr Bannister has repeatedly said he is “extremely troubled” that BPL has not been able to keep the lights on and provide reliable consistent electricity.

American company PowerSecure was contracted to take over management at the government-owned utility provider in early 2016.

The new management deal was promoted by the former Christie administration as being the answer to sub-par electricity service and high electricity bills.

However the country has still been plagued with repeated power outages, especially in the summer months.