Liabilities at the Bahamas Electricity Corporation (BEC) continue to surpass its assets, according to BEC Executive Chairman Leslie Miller.
In fact, Miller said it has caused a "serious" cash flow problem for the corporation, with more than $123 million outstanding.
"That's part of the problem at BEC when you consider that we have over 3,000 people that are currently without electricity and have no means to pay off their bills so that they are reconnected," he revealed yesterday.
"Over the years, BEC's liabilities have surpassed its assets by $123 million. In other words, BEC should really be closed.
"But of course, the government can't shut down such a vital entity that affects our lives either in a positive or negative way, so you keep it running for the welfare of the Bahamian people.
"At this present time, our accounts receivable is in serious trouble. Management has a lot to do with the problem that BEC currently faces and has found itself in. That's because minor things have been neglected over the years."
While he believes the corporation's rate is still unaffordable at 36 cents per kilowatt hour, Miller pointed out it is a decrease from 46 cents per kilowatt hour when he first took over the corporation 18 months ago. Miller also estimated that if the necessary mechanisms are place, BEC could become a profitable entity in an 18-month period.
Back in September 2013, Prime Minister Perry Christie announced the government's intention to bring private sector involvement into BEC to produce efficiencies that are intended to reduce the cost of electricity.
BEC will be split into a semi-privatized generation company, JVCO, that will sell power to its a newly-formed transmission and distribution entity (NewCo) under a 25-year power purchase agreement (PPA). JVCO is intended to be, at least initially, majority government-owned.
NewCo will remain entirely government owned but will be operated under a 10-year management contract.
Miller was the keynote speaker at the Bahamas Society of Engineers' (BSE) monthly meeting yesterday at the Luciano's of Chicago restaurant on East Bay Street.

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