Bamboo Town MP Renward Wells yesterday criticized the government's inaction over the managerial reform of the Bahamas Electricity Corporation (BEC), stating that the country needs to make the switch to liquefied natural gas (LNG) immediately.
Speaking in the House of Assembly yesterday, Wells stated that the government's indecision is not in the best interests of the Bahamian economy and The Bahamas is "right back" in the same place it was prior to the 2008 Financial Crisis regarding its energy sector.

"Our lack of decision to decide on a strategic partner for BEC is not in our current best economic interests. I believe that we ought to make that decision and make it quickly.

"If we make the decision to move in the direction of LNG, to move in the direction of installing aero-derivative engines, then we could dramatically reduce the cost of electricity for the Bahamian people," Wells said, stressing the additional burden placed on Bahamians due to value-added tax (VAT).

While Wells acknowledged that he voted for VAT, he said that he did so with the caveat that the government would reduce the cost of electricity to increase the disposable income of Bahamian households.

"We ought to move in that direction sooner rather than later. We ought to give that kind of economic relief to the Bahamian people," he said.

Regarding the fuel sources currently used by BEC, Wells said that while Bunker C diesel is competitive with LNG it costs BEC a great deal due to "massive" maintenance fees for its slow-speed diesel engines.

"Bunker C is competitive with LNG. The problem with Bunker C is the heat rate. Whereas you can use a miniscule amount of LNG to get an engine going, the amount of Bunker C that you need to get the same heat rate is massive. Bunker C works in slow-speed diesel engines and the amount of maintenance for these slow-speed diesel engines is massive," he said.

BEC Executive Chairman Leslie Miller, one of the first proponents of LNG use in the country, told Guardian Business that the Bahamian people continue to "suffer tremendously" from high electricity costs as a result of not making the switch to LNG power sooner. In the company's current state, Miller believes that BEC will not see a meaningful shift to LNG for another five to seven years.

Prime Minister Perry Christie last month said that LNG will become a "hot topic" in The Bahamas in 2015, after he revealed that the government is in talks with "major players" in natural gas launching projects in Jamaica and Florida. The renewed interested in the fuel largely stems from U.S. Vice President Joe Biden's pledge at last month's Caribbean Energy Security Summit (CESS) to explore exporting LNG throughout the Caribbean.

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