Amid concerns that furious lobbying may be delaying a decision on the reform of the Bahamas Electricity Corporation (BEC), the heads of the country's largest umbrella union and the union representing BEC's line staff have written to Prime Minister Perry Christie urging him to pick a company that will power the country with natural gas to take over generation at the corporation.
The president of the BEC managerial union has also thrown his support behind their call.
Their position is essentially a vote of confidence for Texas-based Caribbean Power Partners, headed by Taylor Cheek. The company, which would partner with Fluor Corporation, has previously indicated that it could cut power costs for Bahamians by 60 percent through the construction of a 300-megawatt power plant that could use multiple fuels, but primarily liquified natural gas and propane.
Paul Maynard, president of the Bahamas Electrical Workers Union (BEWU), and Clinton Minnis, president of the Bahamas Electrical Utility Managerial Union (BEUMU), said no significant good can come out of ongoing efforts to reform BEC without a change in the type of fuel that is used at the plant.
Minnis, in an interview with Guardian Business, said: "The thing is if we are going to mature and get where we need to go and reduce the cost of living in the country, then the change in the fuel infrastructure needs to happen. You have to do natural gas, you have to shift. You will be flamming the country if you don't do that."
Noting that he is aware that a "Texas-based" company bidding to take over BEC's power generation is planning to primarily do so by means of natural gas, Maynard said he and John Pinder, president of the National Congress of Trade Unions of The Bahamas (NCTUB), wrote to Christie last month to recommend he picks that company. Maynard said the unions received an acknowledgment of their correspondence.
"We have sent a letter to the prime minister, encouraging him to move this country forward wholly into the 21st century and the first world by going natural gas, so these bills can be cut in half to re-energize this economy. We've encouraged him and we will stand behind him and the deputy prime minister in any efforts to do that," said Maynard, who added that his members support privatization.
"We the union would hope the government would make the right decision for the Bahamian people and this would truly save the Bahamian people. The economy is about to tank with the fuel bill.
"BEC is businesses' biggest bill. It's ridiculous," he added.
The government announced plans to reform BEC last August, with the intention of cutting the cost of power for Bahamian consumers and the private sector.
The plan as initially announced would see BEC split into two companies, seeking separate bidders to take over BEC's power generation and transmission/distribution operations.
Six companies entered the bidding process for BEC contracts with the government and up until today the Cabinet continues to consider recommendations put forward by its advisers, KPMG (Bahamas) on the proposals made by these companies as to how they would ensure a reduction in power costs for consumers.
The government had initially stated it would finalize contracts with two companies by the end of 2013, allowing them to launch services by May 2014, however significant delays have ensued and little information has been forthcoming about what may be behind it.

Lobbying
Maynard said that "investigations" by the union have led them to believe that the process is being held up as a result of "lobbying" from fuel companies that benefit from selling Bunker C fuel to BEC, that would suffer financially if a company that offers an alternative fuel solution is selected.
BISX-listed FOCOL, whose largest shareholder is businessman Franklyn Wilson, is currently the largest supplier of fuel to BEC.
Maynard said: "Through our investigation, in any situation in this world you've got the lobbyists and the fuel lobby I think and the bank lobby are lobbying heavily. People aren't just going to give up that type of money."
Both Maynard and Minnis suggested that even if a decision was made today regarding the way forward for BEC, it may take until fall or the end of next year before consumers start to see the benefit.
Minnis said: "You can make a decision but if you are going to do public consultation, regulation changes, educational changes so the public at large is fully aware, you are not going to do that this summer, you are looking at fall next year sometime.
"With our members there needs to be some level of training and certification to make sure they understand what needs to happen. This is a long process to bring in a new infrastructure, so if that's the decision the government wants to go with, that will help to manage the cost of living, that's not an overnight thing."

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