Details of Government’s Assistance for Grand Bahama Electricity Consumers Outlined
Published: Wednesday October 8th, 2008
Senator Katherine Smith
In addition to subsidizing the fuel surcharge for thousands of residential electricity consumers on Grand Bahama, the Government has also agreed to pay reconnection fees for customers whose service has been restored by the Grand Bahama Power Company, in addition to other subsidies.
In moving to formalise its social assistance programme for the island’s electricity consumers as it did for consumers of the Bahamas Electricity Corporation (BEC), the Government requested that the Grand Bahama Power Company immediately restore service to all disconnected residential consumers, and require those consumers to enter into a payment plan agreement with the company.
Those customers are required to enter into that agreement by October 17.
On Wednesday, Parliamentary Secretary in the Office of the Prime Minister Senator Katherine Smith outlined the details of the steps the Government has agreed to undertake with respect to its announced social assistance for the Power Company’s residential customers.
“The Government has agreed to pay to the Grand Bahama Power Company a re-connection fee of $30 for each of the residential customers who had their electricity supply reconnected,” Senator Smith said.
“The Government has [also] agreed to reimburse the Grand Bahama Power Company for electricity consumed by these residential customers from the date of restoration of service and the date of termination of service should these customers fail to pay the agreed 25% payment by next week Friday, October 17.”
Additionally, the Government has agreed to $1.5 million in fuel surcharge subsidy payments to the Grand Bahama Power Company, to be paid in 3 monthly instalments of $500,000 beginning next month.
For consumers using no more than 800-kilowatt hours per month, the Government has agreed to pay to the Grand Bahama Power Company a fuel charge subsidy equal to the full amount of the fuel surcharge in excess of fifteen cents ($0.15) per kilowatt-hour for the period October 1 to December 31.
The payment plan as per the programme meantime, requires previously disconnected customers to pay to the power company 25% of all outstanding bills in excess of 30 days; to pay the balance of arrears over a six (6) month period; and to keep current the payments on all current and future bills.
“I wish once again to remind those residential consumers who had their service restored as per this programme, that they must enter into a payment plan agreement with the Grand Bahama Power Company by next week Friday, October 17,” Senator Smith advised.
During a joint press conference with the Grand Bahama Power Company on October 3, Minister of State for Finance Zhivargo Laing said electricity for disconnected consumers would be restored as of that date.
Mr. Laing advised persons encountering difficulty in meeting the payment plan as set out by the Power Company to visit the Department of Social Services for the applicable assessments.
Outlining the Government’s schedule of increases to the Department of Social Services that came into effect on October 1, Prime Minister Hubert Ingraham advised parliament that utility payment assistance (electricity and water) based on the production of billing and verification of need was increased from a one-time assistance of $300 to payments totalling up to $600 per year.
It is in keeping with his administration’s policy of responsiveness to the needs of the country’s people, “that caused us recently to take steps to bring relief to many Bahamian families who have been so negatively impacted by the skyrocketing cost of energy that their supply of electricity had been turned off,” Mr. Ingraham said on September 29.
Senator Smith said: “As stated by the Rt. Hon. Prime Minister in announcing the Government’s social assistance programme for residential electricity consumers in the country, these measures are designed to bring relief to families and help them through a difficult economic situation.
“The responses taken to-date also represent the actions of a caring government, that has demonstrated and continues to demonstrate the will to respond responsibly and effectively to the needs of the Bahamian public.”
