Bahamas Power and Light (BPL) has called a press conference today (Wednesday) to discuss aspects of its business plan, and one of those aspects -- the labour component -- is already going smoothly, according to Clinton Minnis, whose time as president of the Bahamas Electrical Utility Managerial Union is drawing to a close.

Pamela Hill took office as CEO of BPL just under a month ago.

BPL is wholly owned by the Bahamas Electricity Corporation (BEC) and was created to allow BEC to split off its power generation, transmission and distribution duties and prepare for ring-fencing the utility's $450 million plus legacy debt.

The government signed a management services agreement (MSA) with U.S. company PowerSecure International on February 8, 2016. That agreement covers five years, at a flat fee of $2 million per year with a possible 50 percent bonus for hitting certain predefined key performance indicators (KPIs) related to cost reductions, reliability improvements and customer service enhancements in order for PowerSecure to receive any additional compensation. Should the company successfully hit all the deliverables, the contract is worth $25 million.

The MSA included a comprehensive, financial-grade business plan which was supposed to outline significant cost-reduction and reliability targets along with renewable energy and customer service initiatives for New Providence and the Family Islands. Deputy Prime Minister Philip Brave Davis has confirmed the plan was only in draft form initially, and at the end of April said it is finally complete and due to be presented to him "shortly".

Hill is expected to discuss details of the plan at the press conference.

Meanwhile, Minnis told Guardian Business he was optimistic about that relationship.

"We're not into BEC just to make money. We're into BEC because we are part of an essential service in the interests of national development. Our economy is determined by how we produce electricity... So we have to get along, especially in transition," Minnis said.

"So in this season, we have to be able to adjust in order to make sure we all get along. This is very important," he said.

Pointing to the hotel sector as an example, he said the two main factors that affect the price of doing business are the cost of labour and the cost of electricity, and that it was therefore critical that the electrical utility be operating at its optimum levels.

Leadership
The new Board of Directors for BPL is chaired by Nathaniel Beneby and consists of Donna Smith, Deputy Chairperson; Deepak Bhatnagar, Executive Director; Daphne Simmons, Patricia Hermanns and Andrew Rogers.

Minnis asserted that the new leadership at BPL is "a blessing."

"We've had some bad experiences with our former executive chairman as the public is aware... I can tell you that the people in BEC, we are praising the Lord because we have moved from under the curse that was Miller and that we are under the blessings of Mr. Beneby, the new chairman.

"So we are in a blessings environment right now. You can get along when you're in a blessings environment.

Minnis also attacked the assertion that overtime for BEC workers was causing a rise in electricity bills. His argument was that the industry budgets for workers to make overtime because it is a demand industry.

"... And the people's light bills are the lowest in a decade, so you can't blame overtime for the high cost of electricity, you've got to find something else to blame.

"So when you have professional businesspeople come into the environment and see what needs to be done and do what they have to do, everyone is happy. We're getting along the best I've ever seen since I've been in BEC, the union, the board and now we're forging a new relationship with the new CEO, Pamela Hill.

"So there's no conflict or tension in the environment at this time," he said.

Hill's post as CEO of BPL means she must pilot the company through reform of the energy sector, and she takes office with power generation already pushing up against upper limits before the summer officially begins.

K. Quincy Parker, Guardian Business Editor

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