NASSAU, BAHAMAS- The Government of The Bahamas’ plan to explore control of the Grand Bahama Power Company drew renewed scrutiny yesterday, as Prime Minister Philip Davis announced the signing of a Memorandum of Understanding (MOU) with Emera Incorporated, prompting critics to question the government’s record in managing public utilities.
The announcement, made at a press conference in Grand Bahama on Tuesday, signals the possibility that the government could assume control of the island’s sole electricity provider for the first time since the Hawksbill Creek Agreement. While the administration framed the move as part of a broader energy reform agenda, long-time critics of the monopoly structure questioned whether government ownership represents an improvement over the current model.
“This MOU reflects a shared commitment to explore a new path forward for energy in Grand Bahama,” Prime Minister Davis said. He confirmed that, if the process is completed, it would mark the first time the Government of The Bahamas could control the power company since the Hawksbill Creek Agreement was signed.
According to the Prime Minister, the proposed arrangement would allow for universal electricity rates across the country, eliminating what he described as a long-standing disparity between Grand Bahama and the rest of The Bahamas. “This is important because it will result in universal electricity rates across The Bahamas,” Davis said, adding that the move would also strengthen national energy planning.
Davis said the MOU forms part of the government’s wider energy reform agenda aimed at reducing electricity costs for households and businesses. “Lower energy costs mean lower costs of living. They mean more competitive businesses,” he said. He noted that the agreement does not represent an immediate transfer of ownership, but rather establishes a framework for discussions between the government and Emera.
“This is not about control for its own sake. It is about fairness. It is about affordability,” Davis said, adding that discussions are proceeding deliberately and in the public interest.
However, the announcement was met with caution from some long-standing advocates against the Grand Bahama Power Company’s monopoly structure. Pastor Eddie Victor, president of the Coalition of Concerned Citizens (CCC), said yesterday that the group plans to intensify public focus on what it has long described as regulatory challenges surrounding the utility.
Speaking with Eyewitness News, Pastor Victor questioned whether government ownership would produce better outcomes for consumers and businesses on the island.
“To be frank and open, I don’t think it’s a good idea for our government to take over the power company here in Grand Bahama,” Victor said. “I would have thought that they would have found another buyer there.”
Victor said he believes there were alternative private-sector options available. “I know of companies that would come in here and buy that power company,” he said. “But Emera, you know, for whatever reason, they appeared very resistant to the whole concept.”
He expressed concern about what he described as the government’s historical performance in managing utilities. “My reasoning, particularly with the government, is that the government doesn’t have a good track record with the power company in Nassau or the family islands,” Pastor Victor said. “And so it may be celebrated as a tremendous move, but I don’t think it’s a good move at all.”
Victor argued that a better outcome would have been the sale of the power company to another private operator working within national energy policy. “The better scenario would have been for another company that would have come in here and working in the framework of the government policies for energy in The Bahamas,” he said. “They would come in, make the necessary investment and bring down the rates, because the rates that we have been paying are unnecessarily high.”
Victor also suggested that Emera’s decision to exit may be linked to regulatory constraints. “I believe that Emera is trying to get out because Emera could not live up to its obligation,” he said.
Despite his concerns, Victor acknowledged one potential benefit of government ownership. “The only good thing about this news is that if the government owns it, then they’re going to make sure they’re regulated by URCA,” he said. “That’s the only good thing about this.”
Whether that outcome materialises, however, remains uncertain. The Utilities Regulation and Competition Authority (URCA), the energy sector regulator has been locked in a legal battle with Grand Bahama Power Company over whether it has supervisory authority over the utility.
Pastor Victor noted that details surrounding the MOU remain limited. “No details were given. It’s just a MOU,” he said, adding that the timing of the announcement also raised questions. “Election is not too far away. All of this is good election news.”
For now, the MOU establishes a framework for continued discussions between the government and Emera, with no final transaction announced.
