Wednesday, March 2, 2022
By LEANDRA ROLLE
Tribune Staff Reporter
lrolle@tribunemedia.net
A DAY after Bahamas Power and Light “prematurely” announced a proposed hike in electricity costs due to rising fuel prices, Works and Utilities Minister Alfred Sears said yesterday the government has not approved any rate increase for power in the country, nor is it considering doing so.
This was also supported by Prime Minister Phillip “Brave” Davis yesterday, who committed his administration to doing all it can to avoid “raising the cost of electricity” on the Bahamian people.
Both men spoke after the power provider advised consumers in a press release on Monday that fuel costs would rise 3.2 cents per kilowatt hour (kWh), warning some customers could see a rise of about $8, while others could pay $19 more on their electricity bills depending on consumption.
BPL recalled the statement about an hour later in the day, and no further information was given.
However, in the recalled press release, BPL said the proposed cost increase, which was expected to take effect today, was in response to rising global oil prices among other factors.
Yesterday, Mr Sears told reporters the press release was premature as it was never discussed by Cabinet beforehand as is the protocol.
He said: “Specific to the statement that was issued yesterday by BPL with respect to the increase of the rate for electricity, the matter was raised with me by the chairman last week. I spoke very briefly with the Prime Minister and the Cabinet has not had an opportunity as the shareholder of BPL and also as the backstop supplier because the hedge which stabilises the price of electricity — that is provided by the government so the people of The Bahamas is really funding the subsidisation of electricity of The Bahamas and the matter has not been brought to Cabinet at this time and, therefore, the release was premature and when it came to my attention as the responsible minister, I spoke to the chairman and that statement was recalled.”
Acknowledging the hike in energy and fuel prices due to the Russian-Ukrainian war, Mr Sears said the government was looking at ways to keep local fuel costs at an affordable rate.
This comes after Foreign Affairs Minister Fred Mitchell projected last week that gas prices could increase to as much as $8 per gallon because of the international conflict.
Yesterday, Mr Sears said: “At this time, the Prime Minister has appointed a Cabinet subcommittee which is looking at how to address the question of energy on a short-term as well as a long-term basis.
“The government and this subcommittee has met with a number of entities, both national as well as international relating to the supply of LNG, solar energy and the development of micro grids within the entire Bahamas with not only in respect to New Providence, but all of our various islands so that we can bring down the cost of electricity and we can have a more sustainable supply to ensure that there is Bahamian ownership in the infrastructure for the provision of electricity.
“But at this point, no decision has been made. In fact, the Cabinet has not even considered (any) proposal to increase the rate of electricity.”
Meanwhile, Mr Davis addressed the issue of electricity costs in a recorded message from Belize, where he is attending a CARICOM meeting.
“My government will do its endeavour best to ensure that the rise in gas prices around the world will not have a deleterious effect on our people,” Mr Davis said. “God knows that our people could least afford to have more taxes or costs visited on their backs and my government will do all in its power to see how we can avert raising the cost of electricity on our people and as soon as I’m back to The Bahamas, we will be sitting down to brainstorm this to see how we can best do that.”
Asked what the situation means for the government’s proposed rate reduction bond, Minister Sears said: “Well, as you know, the rate reduction bond was a proposal that we met on the table and I can say that at this point, we are not proceeding with the rate reduction bond as framed that we met.
“And, therefore, the purpose of this sub-Cabinet committee is to look at all of the available options to consult with our domestic stakeholders and to take proposals back to the Cabinet and have the Cabinet make a determination.”
Comments
tribanon says...
LMAO
Things are so financially bad at BPL that Cabinet had little choice but to take the chains off of the 800 pound gorilla in the room and then give Sears the unpleasant task of trying to cushion its fright of all financially strapped electricity consumers. THIS IS DAVIS'S WAY OF PUTTING US ON NOTICE THAT WE SHOULD EXPECT A WICKEDLY HOT SUMMER COMBINED WITH A WHOPPING INCREASE IN OUR ELECTRICITY BILLS, THE LIKES OF WHICH WE WILL HAVE NEVER SEEN BEFORE.
Posted 2 March 2022, 9:18 a.m. Suggest removal
KapunkleUp says...
Pretty much at the point of choosing between food/rent or turning on the lights.
Posted 2 March 2022, 12:49 p.m. Suggest removal
Dawes says...
Theres not much the Govt can do as things have gotten worse at BPL. If they don't allow the increase then BPL will need much more money which means Govt will need to tax more. If they do then Bahamians will be in uproar. But no one will blame the actual people responsible. Those in power for the last 25 years who took BPL from being a money making entity to a massive cash loss. And many of those people are in charge now so i don't hold out much hope of anything correct being done.
Posted 2 March 2022, 9:55 a.m. Suggest removal
tribanon says...
Clearly the reality of the situation has not sunk in for you. The game of kicking the can down the road is over because most Bahamians today simply do not have it to pay, whether it be their electricity bill or the taxes they can no longer afford.
Posted 2 March 2022, 10:17 a.m. Suggest removal
bahamianson says...
Govt. Stepped in to block rate rise" , when govt gets around $3 first, before each gallon of gas is pumped. Stop misleading the public. All govt has to do is reduce the amout they collect for each gallon before it is pumped into each car.
Posted 2 March 2022, 10 a.m. Suggest removal
Maximilianotto says...
The can has reached the end of the road. No way out unless swiftly restructuring or bankrupting/liquidation of BPL and independent management. Nice well meant talk doesn’t resolve the problem - unless government printing money which might be best solution - pay staff with worthless B$. Pity.
Posted 2 March 2022, 10:34 a.m. Suggest removal
John says...
Regardless of what government does, the freight train has already left the station, the horses are out the gate. Increases are coming. And if the ‘war’ with Russia and Putin is long and drawn out, it can push the cost of electricity beyond the reach of many Bahamians. But , of course, the Arab nations can start pumping more oil and the USA can untapped some of its reserves. And every Bahamian household should strive to install solar panels capable of running basic lighting and eventually a fridge or freezer
Posted 2 March 2022, 12:28 p.m. Suggest removal
Proguing says...
The increase in the price of oil has nothing to do with the war in Ukraine. No oil fields have been destroyed and the Russians need to sell their oil to finance their war. The explosion in the price of oil is due to the unprecedented sanctions taken on Russia which has made its oil so toxic that nobody wants to touch it. As there is no spare capacity, the price of oil will continue to surge until either, Biden loosens the sanctions or there is demand destruction.
Posted 2 March 2022, 1:53 p.m. Suggest removal
ForeverDreamer says...
I don't see how that makes it unrelated. The Crimea annexation had similar sanctions but I don't recall if it was as far reaching. So Russian aggression against the Ukrainian state being unrelated to market prices due to removing these oil commodities source for those aligned with western opposition to the Russo offensive seems confusing.
Posted 3 March 2022, 9:28 a.m. Suggest removal
Proguing says...
Current situation in the oil market:
Disruptions to Russian oil exports intensified on Wednesday with more countries and companies refusing to import and transport Russian crude and at least 10 tankers failing to find buyers, driving oil and gas prices higher.
The United States and the European Union have imposed harsh sanctions on Russia for the invasion of Ukraine but so far have refrained from direct measures on Russian energy exports after oil and gas prices have soared to multi-year highs.
Many Western buyers though have already refrained from buying Russian oil as they await sanction clarifications.
As a result, some 7 million barrels per day of Russian oil and products exports and an additional 1.2 million bpd of Kazakhstan's exports via Russia - amounting to a combined 8% of global supply - have been disrupted in recent days.
Canada said it would shut ports to Russian-owned ships and oil tanker company Frontline said it was unlikely to transport Russian crude.
One of the top Russian oil firms, Surgutneftegaz, failed to find buyers for nine tankers with 6.5 million barrels of crude, traders said.
The ship-owners of two crude oil tankers due to load Russian and Kazakh oil from the Black Sea cancelled the shipments, traders said.
As Russian oil export disruptions widened, buyers began to look for alternative supplies in an already tight market.
State-run Indian refiner Bharat Petroleum Corp. was seeking extra oil from the Middle East and Polish refiner PKN Orlen ordered five additional North Sea oil tankers from Saudi Aramco.
Inside Russia, the independent Novoshakhtinsk refinery suspended operations due to falling demand for Russian oil products.
Posted 2 March 2022, 2:23 p.m. Suggest removal
sheeprunner12 says...
Was not Davis seeking to buy oil directly from the Saudis?????? ........... Or was that PR???
Posted 2 March 2022, 2:59 p.m. Suggest removal
Maximilianotto says...
Saudis sell to anyone paying market price and has cash. Simple. And BPL has the cash? Or ask Putins Gunvor oil trader at Lyford Cay Mosko Office building 5th floor to support with Russian oil? This game isn’t our country’s pay grade.
Posted 4 March 2022, 1:11 p.m. Suggest removal
John says...
Russian vodka is also banned in Texas and other places
Posted 2 March 2022, 3:45 p.m. Suggest removal
Proguing says...
Problem is most Vodka is not made in Russia, but in the USA apparently that detail is being ignored:
"Bar owners are protesting the invasion by dumping out Stoli Vodka. Problem is, it's only Russian by name, which is loosely translated as "capital city" due to its origins in Moscow. The vodka is actually made in Latvia, and the company's headquarters is in Luxembourg - a member of NATO which has spoken against the Russian invasion.
In a statement to CNN Business, Stoli Group said it "unequivocally condemns the military action in Ukraine and stands ready to support the Ukrainian people, our teams and partners."
"For decades, Stoli Group has supported the marginalized and those at risk of unwarranted aggression. We stand now with all Ukrainians and Russians calling for peace," a company spokesperson said.
Smirnoff is another brand being confused as being Russian. Although it traces its heritage to 19th century Russia, the company has long been owned by British spirits giant Diageo and is manufactured in Illinois."
Posted 2 March 2022, 4:30 p.m. Suggest removal
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