FREEPORT, Grand Bahama, July 2, 2024 – Responding to recent comments Prime Minister Philip E. Davis regarding the potential removal of the Grand Bahama Port Authority (GBPA) as the regulator for the Grand Bahama Power Company (GBPC), the GBPA today reaffirmed its “longstanding regulatory authority.”
“The Hawksbill Creek Agreement (HCA), a cornerstone of our governance structure, granted GBPA the right and responsibility of regulating all utilities within the City of Freeport,” the GBPA said in a press release. “In 1993, with the execution of the East & West Agreements, this mandate was extended to include government territories on the island of Grand Bahama. Since the inception of the HCA, no Act of Parliament has superseded its provisions.”
The release added, “Under Clause 2(21) and 2(23)(a) of the HCA, GBPA and GBPC as a licensee of GBPA have been vested with the sole authority to operate utilities, including electricity generation, transmission, and distribution, within the Port area until the HCA’s expiration in 2054, without having to obtain a permit or license from the Government of the Bahamas or any department or licensing thereof.
“As such, the Electricity Act which attempts to give URCA the legal right to license and oversee energy providers is inconsistent with and conflicts with the rights and privileges vested in GBPC and GBPA by the HCA. An action was commenced in the Supreme Court to challenge URCA’s ability to license and regulate on the basis that these conflicts with the provisions of the Hawksbill Creek Agreement as Freeport’s founding treaty. We will continue to defend our positions, as it is important to point out that there have been over a dozen successfully litigated cases that have set a judicial precedent for the GBPA’s exclusive regulatory authority in Freeport.”
GBPA President Ian Rolle said,” We remain resolute in our stance that we are indeed the rightful regulator for the City of Freeport, encompassing both power and water services. Our commitment to this role is steadfast, and we are currently before the Supreme Court to affirm our position. We are confident that the court will uphold our regulatory authority. Defending the Hawksbill Creek Agreement is vital for the benefit of our licensees and the residents of Freeport.”
The regulatory framework established between GBPA and the Grand Bahama Power Company is the first of its kind in the country and has set a benchmark in the region. This agreement has been instrumental in ensuring the high quality of service that the Grand Bahama Power Company is known for today.
“Our collaborative approach with the Grand Bahama Power Company has led to a regulatory model that prioritizes reliability, efficiency, and customer satisfaction,” Rolle added.
In 2013, GBPA established the first and only groundbreaking ‘Utility Operating Protocols and Regulatory Framework’ in The Bahamas, providing full transparency in rate setting. This comprehensive framework includes stringent reporting requirements, efficiency mechanisms, reliability criteria, and transmission loss measures. Additionally, it has incorporated innovative approaches such as the integration of solar generation and the implementation of a fuel hedging program that continues to benefit consumers.
The framework has allowed for the stabilization of rates, ensuring predictability and fairness for consumers. GBPC continues to make significant investments in its generation, transmission, and distribution infrastructure totaling more than $150 million over the past years.
We look forward to the judiciary reinforcing our regulatory authority, and in the meantime, GBPA will continue to fulfill its responsibilities as the regulator for utilities in Freeport. We are dedicated to ensuring the continued provision of reliable and efficient utility services for the residents and businesses of Freeport.
