NASSAU, BAHAMAS — The Opposition has raised questions of fairness and transparency over the Grand Bahama Utility Company’s (GBUC) proposed increase to water rates next month.
East Grand Bahama MP and Opposition Shadow Finance Minister Kwais Thompson said in a statement that the process to determine whether to increase the water rates in Grand Bahama must be fair and conducted by an independent body. Thomson noted that the Grand Bahama Utility Company is an affiliate company of the Grand Bahama Port Authority, with the same shareholders and it is therefore impossible for the GBPA to act as a regulator of itself.
“This structure was set up years ago at a time when it was necessary to create incentives to develop Grand Bahama, Freeport in particular,” Thompson stated. “It was acceptable to give the GBPA regulatory authority over utilities, particularly water. There is also a difference between allowing a government to regulate itself and a private company.”
Grand Bahama’s water supplier has proposed a rate change to its utility customers effective May 1, 2023, noting that it had deferred the increase for two years. The company stated that while 40 percent of its customers will see no increase in their bills, the remaining GBUC customers will, on average, see an increase of approximately $8 on their bills.
The company also noted that to date it has spent over $15 million in Hurricane Dorian-related recovery costs, at a financial burden to the utility.
Thompson indicated that in New Providence and throughout the Bahamas, water is provided and regulated by the Water and Sewage Corporation.
“However, if there is a rate increase it would have to be approved by the Government, which is accountable to the people of the Bahamas. The Grand Bahama Port Authority is not accountable to the people of the Bahamas but to its shareholders.”
“The GBPA has in its statement committed to a ‘fair and transparent’ process which will be impossible when the decision is made by the GBPA whose shareholders are the same as the GB Utility Company,” continued Thompson.
“Even if the information is true and correct the process is tainted.”
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