Prime Minister Hubert Ingraham on Wednesday ordered that the Bahamas Electricity Corporation (BEC) immediately restore power to more than 5,000 residential customers whose electricity had been disconnected because they failed to pay outstanding power bills in entirety.

And, the prime minister also capped the fuel surcharge for consumers who use 800 kilowatt hours of electricity or less at 15 cents until the end of the calendar year.

Mr. Ingraham explained that disconnected consumers have until October 10 to make arrangements with BEC to pay at least 25 percent of the outstanding bill, with the balance to be paid over two years.

In the meantime, consumers are expected to remain current with new bills.

Mr. Ingraham said the government expected that the actions would bring relief to 85 percent of the disconnected residential residents. He said the government would lend BEC $4 million to fund what he called "this singular event," with the corporation directed to repay the loan within two years.

Attempts to reach BEC General Manager Kevin Basden for comment were unsuccessful up to press time.

Among the other measures he said the government would take to ameliorate the unusually large increase in BEC bills, Mr. Ingraham noted that the $600,000 annual dividend BEC owes the government would now be directed to offset surcharge costs, and that old age pensioners and unemployed heads of households with children could also apply to the Department of Social Services for possible assistance.

There was also the question of reconnection.

In addition to ordering that no reconnection fees be charged when the power is restored today, Mr. Ingraham said, "BEC is being directed to reverse its policy which requires residential consumers to pay all arrears in full before any disconnected electricity supply is restored, and return to the policy that required only a 50 percent payment of arrears prior to reconnection of supply."

"This exercise is intended to be a singular event designed to bring immediate relief to residential consumers experiencing hardship due to these extraordinarily high electricity bills," he said.

"Consumers are reminded that while their lights will be turned on today, tomorrow or the next day, they are required by the 10th of October to go to BEC and make arrangements to pay at least one quarter of the amount that’s now outstanding on the bill."

"If they do not do so," he cautioned, "BEC is likely to turn them off again."

"Those who are unable to afford to do so – like old age pensioners, and unemployed heads of households – should make contact with the Department of Social Services to see the extent to which assistance may be proffered to them," Mr. Ingraham advised.

Mr. Ingraham said he’d meet with officials from Grand Bahama Power to see how similar arrangements could be made for Grand Bahama consumers.

The prime minister explained that the move had been made in order to combat what he termed the "extraordinary spike in the cost of fuel, with crude oil, the base product for fuel, rising from $60 per barrel in 2006 to some $140 plus earlier this year."

"This has resulted in an increase in the cost of fuel to BEC from $ 20 million in August, 2006 to $41 million in August, 2008," he said.

What Mr. Ingraham called the "unprecedented and uncontrollably high" cost of fuel over the past few months has significantly contributed to unusually large increases in electricity bills of BEC consumers.

"Residential consumers have experienced an increase in the fuel surcharge on their electricity bills from less than 11 cents in August, 2006 to almost 25 cents in August, 2008," he said.

By Quincy Parker

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