GB Power: 75% won’t see bills increase despite base rate hike
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THREE-QUARTERS
of Grand Bahama Power Company’s customers will see their monthly bills remain unchanged or decrease by up to $2 despite its bid for a 6.3 percent base rate rise, it was revealed yesterday.
Dave McGregor, president of the island’s energy supplier, told Tribune Business that reductions in the fuel charge component of electricity bills will “offset” the proposed base rate hike for most should it be approved by the utility’s regulator, the Grand Bahama Port Authority (GBPA).
Explaining the rationale for the increase, which was submitted to the GBPA on August 1, 2024, in accordance with GB Power’s regulatory obligations, he said the extra revenues generated by the increase will help to finance a 67 percent jump in GB Power’s annual capital investments to $20m per year between 2025-2027.
The extra investment, Mr McGregor told this newspaper, would facilitate the increased integration of renewable energy into GB Power’s grid
• Pledges fuel cost drop to ‘offset’ 6.3% rise bid
• Utility’s annual investment to rise 67% to $20m
• PharmaChem closing eliminates 5% of demand
through the deployment of a batter energy storage system (BESS) that is expected to be installed and operational by 2026.
Asserting that the utility has “tightened the belt as best we
Pintard: ‘Deep concern’ on $100m Beaches revelation
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Opposition’s leader yesterday said he was “deeply concerned” that only the Government - and not Sandals itself - has publicly confirmed specific details on the Emerald Bay resort’s $100m redevelopment.
Michael Pintard told Tribune Business he and his party have been informed by “persons working on the property” in Exuma that they are not confident it will re-open as a Beachesbranded resort within the six-to-eight month timeframe given by Chester Cooper, deputy prime minister and minster of tourism, aviation and investments.
Again questioning whether there was a link between the Beaches announcement and revelations that Sandals is embroiled in a $30.844m tax dispute with the Government over the Emerald Bay property, he asserted in a statement that “there has yet to be an official reopening timeline, and the application and permitting process for the resort’s redevelopment into a Beaches Resort has not even started”.
This statement, based on unidentified sources, aligns with information provided to Tribune Business by its own contacts. Speaking on condition of anonymity, they suggested that plans for the Beaches conversion have yet to be fully
Investor needs rezone to secure $5.6m investment
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
AN INVESTOR will tonight seek to secure his $5.6m south western New Providence purchase at a hearing to rezone a property that two government agencies assured him was for commercial use. Abdoulaye Fadiga, a world-renowned Thai boxing world champion from France, and president of Rose In Atlas, is seeking Town Planning Committee approval to rezone ten acres near the western side of South Ocean Boulevard from ‘residential’ to ‘commercial’ to facilitate the development of an outdoor fitness facility. In documents filed with the Town Planning Committee, he revealed that he acquired the site after being informed by both the Bahamas Investment Authority (BIA) and the Department of Inland Revenue, as well
can”, he said this had enabled it to apply for a base rate increase one full percentage below the 7.3 percent inflation suffered by The Bahamas over the past three years covered by its present tariff structure.
Disclosing that GB Power had lost 5 percent of its total demand in January 2024 with the closure of PharmaChem Technologies pharmaceutical plant, while the total electricity load consumed by the island’s major industrial customers has “under-performed”, Mr McGregor voiced optimism that the utility is “out of the woods” after resolving the outages that plagued early summer.
And, while the latest rate application comes at an especially sensitive time for relations with the Government, given that Parliament recently enacted an Electricity Act that seeks to circumvent the GBPA’s ability to regulate electricity in Freeport, the GB Power chief said it was best to “let the courts figure that out” in a reference to the utility’s legal action over who has the legal authority to supervise it.
GB Power’s new rate application, which covers the three-year period between 2025-2027, generated opposition and criticism from both sides of the Bahamian political divide when it was unveiled yesterday, as well as provoking
Opposing politicians united on ‘absurd’ GB Power rate hikes
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
GRAND Bahama Power Company’s proposed 6.3 percent base rate increase was yesterday branded as “absurd” and “wholly ill-conceived” given the potential impact on residents and businesses.
The island’s electricity supplier managed to unite politicians of both parties in opposition to its application for approval by the Grand Bahama Port Authority (GBPA), its regulator, despite asserting that light bills for 75 percent of its customers will either remain unchanged or enjoy a slight decrease due to the base rate hike being offset by reductions in the fuel charge.
“It is absurd to even consider another rate increase at this time,” blasted Kwasi Thompson, the Opposition’s finance spokesman, to Tribune Business. “Let’s put it this way: The Port Authority and the Government should categorically reject it and deny it.
“It is absurd for the Power Company to make the
application, and most certainly it should be denied by the Port Authority and categorically denied by the Government. Pointing out that Grand Bahama’s economy continues to struggle, with its economic output hitting a nine-year low of $1.53bn in 2022 before recovering slightly to $1.546bn in 2023, the east Grand Bahama MP said the move was especially ill-timed.
“All the people of Grand Bahama have experienced is inflation, the high cost of living, rising boat fees, increased VAT on bread basket items and rising aviation fees,” he added. “It has been additional fee after additional fee. The application should be outright denied. It is absurd to even consider it.”
Mr Thompson’s stance was echoed by Ginger Moxey, minister for Grand Bahama, who argued that GB Power should review its application based on “the hardship faced by Grand Bahamians and the unreliable performance of GB Power since the last increase.
Hotel chief: ‘No real difficulty’ going to fourday work week
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas Hotel and Tourism Association’s (BHTA) president yesterday said he foresees “no real difficulty” with a four-day work week as employers generally gave mixed reactions to the idea.
Robert Sands told Tribune Business much work and negotiation was required before such an arrangement is implemented in The Bahamas so as not to unduly burden the private sector with further excessive cost increases, but he did not dismiss the proposal.
Pointing out that adopting a four-day work week would require employees to work four ten-hour days to meet 40 hours for the week, instead of five eight-hour days, he said one required compromise would involve trade unions agreeing not to demand pay “in excess of the standard rate” for those two extra hours per day to minimise the employer cost burden.
“I think there are a number of things that have to be taken into consideration in a four-day work week,” Mr Sands told this newspaper. “In my opinion, it can work if persons work their 40-hours in ten hours per day. For quality of life issues for people with young families, having three days’ off makes a lot of sense in a world where family issues are not as strong as in the past.
“I see no real difficulty with a four-day work week. It has implications in terms of the understanding of trade unions and so forth. Where there are hours worked in excess of the standard hours, you are not paying in excess of the standard rate, for example. There’s a lot of negotiated situations.
“All these things have to be worked out in such a way that companies are not paying a premium for such an approach. When work-life balance is being brought to bear, I see that as being a positive in the workplace and something that can be supported with all the stakeholders,” he added.
“It’s a question of management. It’s just managing your scheduling accordingly. As long as those hours are still being covered they can still be included under these types of arrangement.” However, Debra Symonette, Super Value’s president, was less enthusiastic about the merits of a four-day work week and suggested its implementation would not be practical for food store chains.
GRAND BAHAMA POWER COMPANY HEADQUARTERS
SANDALS EMERALD BAY
ROBERT SANDS PETER GOUDIE
MINISTER: EMPLOYERS LACK CONFIDENCE ON HEW HIRES
A CABINET minister says there are hundreds of jobs available for Bahamians but employers are not confident in their ability to identify and hire qualified staff for these posts.
Pia Glover-Rolle, minister of labour and the public service, said: “This a problem that, through programmes like the National Training Agency, we fully intend to address by ensuring that Bahamians are trained and qualified to access and fill available roles in key sectors.”
She was the keynote speaker at the graduation ceremony for the National Training Agency’s (NTA) cohort 16 on Thursday, August 1, at Kingdom Worship Centre. Twenty-two women graduated from the programme in the fields of office procedures and teacher’s aide.
“I want to let you know that there are a lot of employment opportunities that are coming to Grand Bahama,” said Mrs GloverRolle. “You’ve heard about the new resorts and hotels, the new airport, the new hospital and health campus, the new cruise port and an expanded shipyard.
“There are hundreds of jobs associated with these developments, which speaks to additional growth that we expect to see with existing businesses, as we turn the Grand Bahama economy around. Ladies, by completing your training at the NTA, you’ve given yourselves a hand-up and a leg-up on the competition because now you are
leaving NTA which has a reputation that precedes it, where employers know the value of soft skills, of technical skills training that you’ve received.
“And when it comes between choosing you versus someone who is an untrained or unverified applicant, the vast majority of times, employers will choose you. So, understand the value of what you’ve received and be sure to use it to your advantage.”
Mrs Glover-Rolle said the National Training Agency (NTA) in Grand Bahama was the second NTA location launched some ten years ago in March 2014, with the vision of creating accessible training opportunities to develop skill-sets that employers are looking for. She added that the NTA has since expanded its offerings, and refined its curriculum, to prepare Bahamians for rewarding careers.
“In the NTA, we have an institution that has a powerful role to play in the development of our labour market and in our nation,” said Mrs Glover-Rolle.
“The NTA stands tall as a major component in our plans. And as we prepare to roll out our National Apprenticeship Programme and strengthen our national approach to training, the NTA will become even more important for the development of our labour force and the empowerment of our people.”
She encouraged the graduates to build on their success in educating and
improving themselves, reminding them the world of work is constantly evolving. She pointed to advances in technology, Artificial Intelligence (AI) climate change and other developments that will redefine what work looks like for each generation.
“So, just because you sit here tonight and you are qualified, does not mean that you will be qualified in the next three, five or ten years from now. It means that you must continue to invest in training and education,” Mrs Glover-Rolle said.
“We are in an era of instant gratification. Sometimes you shy away from embracing perpetual learning and self-development, but I can guarantee you that you will be surprised by the doors of opportunities that will open for you when you continue to learn and improve your skills.
“In fact, I want to encourage you to continue to build on it. Don’t stop here. Don’t let this be the end of your investment in yourself. You can’t find a better form of self-investment than learning a new skill, upskilling, gaining knowledge. I always say, a job can be taken away from you, but knowledge can never be taken away from you. I believe that training and education are essential in getting our workforce to be a success in this 21st century.”
MULTIPLE labour issues were aired and debated at a three-day conference staged by the Ministry of Labour and the Public Service to study potential legal reforms. The Labour Legislation Reform Symposium was held from July 29-31, 2024, at Holy Trinity Activity Centre in Stapledon Gardens. Pia Glover-Rolle, minister of labour and the public service, said the event presented an opportunity for dialogue, feedback and problem solving on the process of crafting modern labour legislation.
Mrs Glover-Rolle said the topics discussed were “as diverse and vast as the complete revamping and replacement of General Orders, the strengthening of child
ernisation of
SENATOR Kirkland Russell presents Frankquanek Laing with the ‘star’ award.
the Bahamian workforce.
Photos:Kristaan Ingraham/ BIS
PIA GLOVER-ROLLE
2024 LABOUR LEGISLATION SYMPOSIUM - CLOSING SESSION
PIA GLOVER-ROLLE, minister of labour and the public service (fourth from left); Ginger Moxey, minister for Grand Bahama (fifth from left); and Senator Kirkland Russell (third from right), along with executives of the National Training Agency, pose for a photo with the graduates of cohort 16 following graduation ceremonies at Kingdom Worship Centre on Thursday, August 1.
Photos:Lisa Davis/BIS
PIA GLOVER-ROLLE, minister of labour and the public service, was the keynote speaker at the graduating ceremony for cohort 16 from the National training Agency, on Thursday, August 1, at Kingdom Worship Centre.
Bimini airport overhaul set to begin fall 2024
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE lead investor in the consortium spearheading Bimini airport’s $80m redevelopment yesterday branded the project as an “incredible opportunity” with construction work set to start this fall.
Jeremy Ebie, chief executive and founder of US-based Phoenix Engineering Group, one of the investors in the Bimini Airport Development Partners (BAPD) group, told the Airports Conference of the Americas summit that the airport’s real estate will still be owned by the Government while the consortium manages and finances its overhaul.
“We don’t talk about privatisation,” Mr Ebie said.
“The way we work, we don’t seek to buy unless it’s a completely available airport. We seek long-term agreements. What we own is the contractual agreement to finance that airport
and run that airport. On the back end, we receive revenues from some of the charges; the economic charges. At the end of the day, delivery is what matters.
“The dynamic we always talk about in the industry - it’s a boring one until it’s critical - it’s risk. Design risks, building and construction risks, financing risks, and the most important one out of all that is the operational one.
“These are costs that are significant. They can run you a long time and, in some cases, can really be a difficult situation for governments when they don’t continuously meet that extensive financial and operation management of risk that you have to place within an asset. We, the partners, are coming to take on that risk on behalf of the Government.”
Mr Ebie explained that the decision to target Bimini’s airport was based on several factors including tourism, and the amount
of tourists that arrive by air, and proximity to the US. He said he saw room for development on Bimini and the opportunity for engagement.
“They have great initiatives,” Mr Ebie said. “We all flew to get here. Tourism is a major part of how the country works. A large part of the GDP and getting people to the facilities is the lifeblood flow of the economy. So, having excellent airports is a priority, and I think it’s a model that you’re going to see more in the Caribbean, you’re going to see more in The Bahamas.
“We’re going to prove that it works well. It works well in the US also, and what I’m excited about for this industry in the Caribbean especially is that this is a time which folks are looking at really putting capital into Caribbean assets because of the interest in tourism post-COVID; because of the movement in the US from South Florida, and because the Caribbean
Concerns voiced over Exuma marina switch
By FAY SIMMONS Tribune Business Reporter
ENVIRONMENTAL
advisers to an Exuma-based developer yesterday voiced concerns over a neighbouring resort project’s decision to relocate its marina.
Eric Carey, consultant for the Turtlegrass Resort and Island Club, told Tribune Business that Yntegra Group’s decision to switch its marina to the southern side of Big Sampson Cay appears to be “impossible and impractical”.
Yntegra is in negotiations with the Government and regulatory agencies for a $100m project targeted at Big Sampson Cay and East Sampson Cay in the Exumas, having signed a Heads of Agreement with the Government in January. It said then that it was “excited about this project and believes in the long-term added value it will deliver to the people of Exuma and to the tourism product in the Exuma Cays”.
The neighbouring Turtlegrass Resort and Island Club, also located on Big Sampson Cay, has voiced concerns over Yntegra’s proposed super yacht marina by arguing that it conflicts with its low density, sustainable and eco-friendly development.
Mr Carey said Yntegra Group’s project calls for overwater bungalows, a marina, sports amenities and staff quarters, with the marina and bungalows risking damage to the pristine seagrass in the surrounding area. He argued that the new marina location is
“impossible” as it cannot be accessed from the west, while the location is shallow and prone to storm surge. Mr Carey also raised concerns about the environmental impact of the marina project, noting that any dredging would risk damaging the turtle grass meadows in the surrounding area, and also asked how Yntegra will generate energy with space for solar panels limited on its neighbouring 20-acre plot.
The ex-Bahamas National Trust (BNT) director said that installing generators would ruin the “ambiance” of Turtlegrass’ low density development.
Meanwhile, Yntegra Group’s project will feature the Rosewood hotel brand, with the developer maintaining it will be environmentally friendly and bring value to the Exuma Cays. The Tribune understands the Yntegra project will also assist in renovating the Black Point airport to accommodate the increased
airlift needed to access the cays. The group has also signed a Heads of Agreement for a $500m development of a new resort and marina in Cave Cay, Exuma. The development of the two projects will be done in tandem and they are expected to be completed within about six months of each other.
Turtlegrass, though, has asserted that the Exumas are not the place for a mega marina, and the Yntegra project is “absolute and total” in its incompatibility with its sustainable ethos. Mr Carey previously said the two resorts could not “co-exist” on Big Sampson Cay as a mega marina could be “destructive” to the marine life that Turtlegrass intends to make the focal point of their development. He said: “There are parts of our country where we will approve marinas, and even mega marinas, because the environment has more capacity to absorb
sits between the south and the north. It’s an incredible opportunity.”
An attendee inquired about climate change and how it affects airports in The Bahamas. Peter Rutherford, moderator and managing director of the Airport Authority, recalled Hurricane Dorian and said the catastrophic hurricane was “a real game changer in terms of understanding how resilient we have to be”.
He added that Mr Ebie and his team had to meet certain requirements as it pertains to weather and that “a clean, green airport is the way we are going in the future”.
“We incorporated components of flood mitigation into all airport construction,” Mr Rutherford said. “Most airports are on the coast. A lot of the airports are probably within half a mile of the shoreline and a lot are impacted by deep ocean currents in the Caribbean. So we had to formulate that into our planning.”
that. But that untouched part of the Exumas is not a place that should have to absorb that impact. They are putting in a marina, putting in overwater bungalows in channels, dredging in channels fast flowing with lots of currents.
“A mega marina in a pristine area is totally destructive to the environment, and totally destructive to our client’s concept. We cannot co-exist with a mega yacht marina having destroyed the seagrass and coral reefs on the nearby beach, offshore of the beach, where my clients are going to be snorkeling, paddle boarding, etc. We’re talking about absolute and total incompatibility.”
INVESTOR NEEDS REZONE TO SECURE $5.6M INVESTMENT
as his attorneys and the vendor, that it was zoned for commercial use only to discover this was not the reality.
The project plans to make use of the existing building on the property instead of constructing new ones. A 50-metre outdoor pool and movable obstacle course will be constructed.
“The existing property will now only be used for an outdoor fitness facility. No new buildings will be constructed at this time. Therefore, we will used all the existing buildings on the property. The only addition will be a 50-metre pool and movable obstacle course,” Mr Fadiga said.
“We are requesting permission to obtain a Business Licence to operate our fitness centre, spa and membership club and restaurant. The restaurant will carter to our members at the existing premises.”
The developer indicated there was an “initial confusion” as to the zoning of the property as both the Bahamas Investment Authority and the Department of Inland revenue initially indicated the site was zoned for commercial use. However, the Department of Physical Planning revealed it is zoned for residential development only.
“There was an initial confusion as to whether the property was zoned commercial. The vendor, the Bahamas Investment Authority, Inland Revenue, and our attorneys indicated that the property was zoned for commercial purposes,” Mr Fadiga wrote.
“Also, there is an existing commercial enterprise on the east and the west of our premise. Therefore, we were of the understanding certified by two governmental agencies that the property was zone for commercial.
“We now understand from the Department of Physical Planning that this is not the case. As a result, we would like to apply for rezoning of the property.”
In a separate application, Mark Thompson, owner of Nature’s Way Nursery, has applied to Town Planning for the rezoning of 0.361 acres from residential to commercial to construct a “small low traffic” office space for his existing nursery in the same area.
Speaking to Tribune Business, Mr Thompson said he purchased the property over 25 years ago and, at the time, it was open zoned but over the years the site was zoned for residential use only. He said his proposed three-unit professional space will not have an impact on traffic in the surrounding area as it will not cater to retail customers. He has already operated his nursery on four of the five acres for over 25 years. Mr Thompson said: “I’ve been running a commercial entity out of there for about 25 years, which is my nursery, on approximately four out of the five acres. So, I’m just asking for a third of an acre more to be used to build my own office and professional space.
“I proposed a multi-use professional space. But nothing like a food store, and it’s not a retail type situation that would have traffic. This is sort of boutique professional space. I have a nursery and a home on the property, and I basically want to construct an office building out front. Its pretty basic. We’re going to keep it screened, we’re going to be low traffic”
The Town Planning application for the property on the eastern side of South Ocean Boulevard said the developer plans to “create a space that harmoniously blends with the natural landscape while providing valuable amenities and services tailored to the needs of our community.”
“Our intention is to ensure that the proposed development for the site seamlessly integrates with the surrounding environment, enhancing the overall organic feel and function of the site,” said the Town Planning application.
GB POWER: 75% WON’T SEE BILLS INCREASE DESPITE BASE RATE HIKE
concerns from the island’s business community and residents (see other article on Page 1B).
However, Mr McGregor said the submission was merely “part of the process” that it committed to as part of the Operating Protocol and Regulatory Framework agreed with the GBPA for electrical utility regulation in Freeport. This mandated that it provide a rate application for the GBPA’s review, and rejection/approval, by August 1 as the three-year cycle came around again in 2024.
GB Power, in a statement, said this year’s submission is broken into two components. Besides the 6.3 percent base rate increase “to maintain investment and operations going forward”, it also features a “system resource plan” designed to align the utility with the Government’s National Energy Policy goal of generating 30 percent of The Bahamas’ energy needs from renewable sources by 2030.
Seeking to both justify, and defend, its 6.3 percent base rate increase bid, GB Power said the extent of the hike sought is lower than The Bahamas’ inflation rate over the past three years.
And, with a fuel hedging strategy already in place to
cover 2025-2027, it pledged that its proposal will “result in a small all-in decrease for the majority of electricity customers” due to the base rate hike being more than offset by lower fuel costs. “The reduction in the fuel pass through will offset for most people,” Mr McGregor confirmed to Tribune Business. “All 75 percent of our customers will see is between zero and maybe a $2 a month” decrease. The base rate is the electricity bill component from which utilities such as GB Power generate the revenues to cover their operational costs and investment needs, as well as service debts and make a profit.
GB Power’s fuel charge, which is a 100 percent pass-through to customers, accounts for around 40 percent of the total electricity bill and is not impacted by the utility’s application. Justifying the extent of the base rate rise, Mr McGregor said: “We’ve requested the base rate in the current at below inflation. It’s not an easy thing - 6.3 percent compared to 7.3 percent.
“Like every business in The Bahamas, we always try to minimise our costs. Insurance, in particular, is a line item that has gone up significantly and continues to be significant. The supply
NOTICE
NOTICE is hereby given that ALICIA HOYTE P.O. Box NP3923, #14 Berrine Close, Sandiland Allotment, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
chain has been tight. It’s just expensive with transformers, lubricant products. We buy a lot of lube oil. All of these products had aboveinflation increases.
“Like every business we tighten the belt and do the best we cab, which is why it [the base rate increase] is below inflation.” Mr McGregor said the proceeds from the rate increase, which will take effect from New Year’s Day 2025 if approved, will help finance expanded capital investment by GB Power.
“Normally our capital budget is in the region of $10m-$12m a year,” he told Tribune Business. “I would say that in the years 2025, 2026 and 2027, this will increase significantly more than that to in the region of $20m.
“That’s really the integration of renewable energy into our system. Already we have two large solar plants, Fairfield and Devon. The next step for us is to deploy battery energy storage to store excess solar produced during the day and to stabilise the system when the sun goes behind the cloud.
“That will be the focus of investment, and we will continue to try and improve the reliability of the existing plant. Reciprocating engines take a lot of maintenance, and a very capital
intensive programme for nine engines.”
Describing battery energy storage as a “one-off investment”, Mr McGregor said GB Power’s capital investment needs would return to the traditional $10m-$12m per annum in the next three-year cycle from 2028 to 2030.
As for progress on battery energy storage’s development, he added: “Were doing the studies at the minute to determine what capacity we need. That should be done before the end of the year. I suspect we’ll be going out for quotes early next year, and it’s usually about a year to deliver and install battery energy storage, so I suspect it will be completed in 2026.”
Mr McGregor, who is also Caribbean chief operating officer for Emera, GB Power’s 100 percent owner, said the estimated $10m price tag for utility-scale battery energy storage has changed little. “The battery market seems to have softened a little bit. There’s a lot more availability and a little less expense than a year ago, so we’re very confident that it can go down a bit,” he added.
Nikita Mullings, GB Power’s chief operating officer, said in a statement that only commercial customers may see a slight increase in
NOTICE
NOTICE is hereby given that MARLON L. HOYTE P.O. Box NP3923, #14 Berrine Close, Sandiland Allotment, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
their light bills if the GBPA approves the base rate increase as proposed.
“With the impact of our fuel hedging programme, residential, general large service and large industrial customers are forecasted to receive a small reduction on an all-in basis while commercial customers would see a small, estimated increase of less than 2 percent,” she said.
“Since our last rate adjustment in April 2022, we have seen reduced sales from our general large service customer classes due to lower energy consumption, the loss of our largest customer and significant inflationary pressures.
“We know there is no good time to propose a rate increase, but the requested adjustment is essential to maintain and improve the efficiency and reliability of services, and to allow us to invest in critical infrastructure maintenance as outlined in our system resource plan to enable the integration of renewable energy sources in keeping with the Government’s targets.”
Mr McGregor, meanwhile, said PharmaChem Technologies’ January 2024 closure had been “very, very significant” for GB Power. “They were about 5 percent of our demand, and when a big slice of demand
“I haven’t given much thought to it but, off the top of my head, I don’t think it would be very practical for us being a seven-day business that is open from 7am to 8pm,” she explained. “There are a lot of hours to cover. That would take some real scheduling to have employees that only work four days per week.
“We’d have to get more staff to begin with because the staff we have now won’t be sufficient to cover the days to keep the business going. It’s likely that we’d have to get more staff and work the ones on board really hard. They’d have to work a lot of overtime and we don’t want that. I just can’t imagine how that would work in an environment like this.”
Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division, told Tribune Business that the idea of a four-day work week was aired “more in passing” at last week’s three-day labour symposium as opposed to being a serious proposal.
However, Pia GloverRolle, minister of labour and the public service, said the Government will review the idea given that other nations have already implemented it. Mr Goudie, though, also voiced scepticism that a four-day work week is practical and can be implemented in The
disappears like that, overnight everyone ends up paying for that because the fixed costs get spread across the rest of the customers,” he explained.
The GB Power chief added that there had been “a general under-performance” for 2024 to-date when it came to energy demand from major industrial users, known as general service large clients, which collectively consume about one-third of the utility’s load.
Revealing that GB Power is already working to implement fuel hedges for 2028, with 2027 already set, Mr McGregor declined to comment on the potential conflict between its GBPA rate application and the Government’s Electricity Act given that the whole issue of who should regulate it remains an active dispute before the courts.
“In the meantime we’ve got to comply with the regulatory framework that’s worked well for Grand Bahama since 2012. It’s a process we follow every three years,” he added.
“It’s important we have a transparent regulatory framework that holds us accountable for costs and makes sure we can get a reasonable return on investment so we can continue to invest.”
Bahamas’ service-based economy where the largest private sector employer, the hotel industry, is a 24/7 sector.
“I’m not so sure that can work in a service economy, and I’m not so sure if we can adjust to going to work in a four-day work week,” he said. “It depends how many hours given all the 24-hour businesses we have. It might work in some offices, but it becomes difficult scheduling and with the 24-hour hotels I don’t see how that can work and how we can work it.
“I don’t think I even want to sit down and do the math. I don’t think it’s worked in every country. I don’t think it’s worked in the UK. If it doesn’t work there, it can’t work here. We have a smaller workforce and tourism keeps increasing. I don’t see it. It’s a nice thought, it’s a nice idea, but is it practical? I don’t think so. It’s all tourism, tourism, and it’s 24-hour. It doesn’t stop.” Mr Goudie said the scheduling and rostering of employees would be “the biggest issue” with a fourday work week, and said: “I don’t think it’s going to work that well unless people are prepared to work 12-hour shifts and I don’t think they want to do that. They need to rest. I just don’t see it, that’s all. That’s my personal view.
“I didn’t pay much attention to it. I was concerned about bigger issues; productivity, working together and keeping our cost and ease of doing business in good shape. That was more important to me.”
NOTICE
NOTICE is hereby given that ENEL VINCENT Key West Street, Wulff Road, Nassau, Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that MATTHEW ANTHONY PINDER of Cherokee Sound, Abaco, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 31st day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
OPPOSING POLITICIANS UNITED ON ‘ABSURD’ GB POWER RATE HIKES
“Whilst this decision claims to be ‘in alignment with its ‘Operating Protocol and Regulatory Framework’, it is wholly illconceived, badly-timed and appears to prioritise profit over the well-being of the community,” Mrs Moxey argued in a statement.
“We empathise with Grand Bahama residents and businesses, and are concerned about the additional strain this proposed increase will present. In 2020,
GB Power implemented a 1 percent increase as a ‘Storm Recovery and Stabilisation Charge’ (SRS),and, in early 2022, they were
granted approval by the Grand Bahama Port Authority (GBPA) for a 3.4 percent increase to the base rate, which was implemented in April 2022.
“Now, in 2024, amidst numerous power outages, GB Power seeks to impose a further 6.3 percent increase to the base [rate]. This is not acceptable. Further, we call on GB Power to enhance its process and functions of investigating and assessing claims of damage to household appliances and equipment resulting from frequent outages.”
GB Power’s new rate application, which covers the
three-year period between 2025-2027, was said to be merely “part of the process” that it committed to as part of the Operating Protocol and Regulatory Framework agreed with the GBPA for electrical utility regulation in Freeport. This mandated that it provide a rate application for the GBPA’s review, and rejection/approval, by August 1 as the three-year cycle came around again in 2024.
GB Power, in a statement, said this year’s submission is broken into two components. Besides the 6.3 percent base rate increase “to maintain investment and operations going forward”,
it also features a “system resource plan” designed to align the utility with the Government’s National Energy Policy goal of generating 30 percent of The Bahamas’ energy needs from renewable sources by 2030. Seeking to both justify, and defend, its 6.3 percent base rate increase bid, GB Power said the extent of the hike sought is lower than The Bahamas’ inflation rate over the past three years. And, with a fuel hedging strategy already in place to cover 2025-2027, it pledged that its proposal will “result in a small all-in decrease for the majority of electricity customers” due to the base
rate hike being more than offset by lower fuel costs.
Nikita Mullings, GB Power’s chief operating officer, said in a statement that only commercial customers may see a slight increase in their light bills if the GBPA approves the base rate increase as proposed.
“With the impact of our fuel hedging programme, residential, general large service and large industrial customers are forecasted to receive a small reduction on an all-in basis while commercial customers would see a small, estimated increase of less than 2 percent,” she said.
“Since our last rate adjustment in April 2022, we have
Pintard: ‘Deep concern’ on $100m Beaches revelation
FROM PAGE B1
drawn-up and approved, and that the necessary construction and other permits are not yet in place, while contractors have yet to be mobilised.
They, too, questioned the six to eight-month timeline given for the construction completion by Mr Cooper given the extent of the remodelling required. However, this is countered - and contradicted - by confirmation from other Exuma resorts that they were informed of Emerald Bay’s imminent closure in advance.
Joe Eustice, Grand Isle Resort and Residences’ general manager, said he and others were officially informed of the resort’s closure - to facilitate its transformation into Sandals’ Beaches brand - during a meeting with his Emerald Bay counterpart on July 31.
“The general manager, Jeremy Mutton, had what they call the local stakeholders— those people who supply goods from Exuma to Sandals, like the tour operators and certainly the Labour Department - they were invited,” Mr Eustice said. “So we got a message directly from Jeremy Mutton, and we were allowed and given the opportunity to ask any questions and get clarification.”
Sandals, too, put out its own statement on the Beaches plans to coincide with that issued by Mr Cooper. One possibility is that the resort chain has agreed to move forward with its plans, which it has harboured for almost a decade, in return for the disputed $30.844m tax sum being forgiven or heavily discounted.
However, Mr Pintard is correct that almost all the
specific details came from Mr Cooper rather than Sandals, with the latter only referring to a “fall 2024” construction start. And the Opposition leader also voiced fears over “diminished airlift” from the likes of Delta and American Airlines as a result of Emerald Bay’s temporary closure. The carriers will likely cut frequency and seat capacity due to the reduced demand.
“We are deeply concerned. It is the most unusual thing a developer not to be a little bit more specific about what their intentions are,” Mr Pintard said. “We are concerned that the deputy prime minister has spoken to specifics that the hotel in control of the project seems unable or unwilling to speak specifically to.
“What we are hearing on the inside from persons who have been disengaged is that they do not know, and they are not confident, of this sixmonth re-opening. That’s from persons working on the property.” Mr Pintard said Emerald Bay’s closure, and corresponding loss of room inventory even if temporary, is likely to cause a reduction in airlift to Exuma and negatively impact all other resorts on the island.
“It’s our understanding that there’s likely to be a decline in airlift in short order from two of the major US-based carriers,” he added. “The Government should speak to this. And is there a relationship between what is proposed by the hotel and the Government insisting on this tax sum owed that spans three administrations? We’ve received no response or answer from the Government. Has the tax dispute exacerbated the situation with Sandals?”
NOTICE
OEUVRE ALPS LTD.
In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, OEUVRE ALPS LTD. is in dissolution as of July 31, 2024.
International Liquidator Services Ltd. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. L I Q U I D
NOTICE
Aikon International Inc.
In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Aikon International Inc. is in dissolution as of July 29, 2024.
International Liquidator Services Ltd. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. L
Tribune Business sources said Sandals’ Judicial Review challenge to the tax authorities’ demand that it pay the whole $30.844m sum upfront in cash, rather than via a bank guarantee, before it can challenge the Department of Inland Revenue’s assessment is still before the Supreme Court and awaiting hearing dates. It has not progressed further since the resort chain obtained its initial injunction.
The exchanges between Sandals and the Department of Inland Revenue over the tax dispute, which have been filed as part of the court proceedings, reveal that the tax authorities insisted the resort chain could only challenge an assessment it alleged “materially overstates” the VAT and Business Licence fees due if it provided access to all books and records being demanded.
The Department, in the documents seen by this newspaper, makes clear its frustration that - three times between February 2023 and April 2023 - Sandals Emerald Bay and its operating entity, Clearview Management, failed to hand over contracts and other documents sought. It claimed that the resort chain was breaching the VAT Act’s section 62 that mandates all records demanded be handed over.
Sandals, though, argued that the records being sought belong to Emerald Bay’s ultimate parent, Sandals Resorts International 2000, and its third-party booking and sales agent, Unique Travel Corp, both of which are domiciled in Panama. As a result, the documents demanded were held offshore by other entities beyond the Bahamian tax authorities’ reach.
The Department of Inland Revenue’s assertion that “it is believed that Unique is a wholly-owned subsidiary of Sandals Resorts International 2000” was disputed by the resort chain, which described the former as a “third-party provider” with whom it has a “contractual relationship”.
As a result, the Bahamian tax authority concluded: “The company has set up a corporate structure and a reporting system that you claim makes you unable to comply with the legislation. Sandals Resorts International has full control over the third-party provider and could readily set up the booking system to generate an invoice [for] the amounts charged for VAT and gratuities.”
“As you have refused to provide invoices issued to clients showing the amount charged for the room or any other documentation to support the total VAT turnover for each year, we have estimated these amounts,” the Department of Inland Revenue told Sandals Emerald bay.
“Should you wish to dispute our estimated amounts you must provide full access to your books and records such that we may arrive at verifiable turnover totals for each year under audit.”
Sandals, though, said that “we are unable to provide invoices to clients” because neither Emerald Bay, its managing company or ultimate parent “contract directly with individual clients and therefore are unable to provide invoices”. And, disputing the comparisons used to calculate the allegedly outstanding tax liability, Sandals said the Department of Inland Revenue figures “materially overstate the prices”
and thus the taxes that are payable. It reiterated that Emerald Bay and its management firm do not contract with guests directly.
Sandals is disputing assertions by the Bahamian tax authorities that its Emerald Bay resort only reported 40 percent of revenues earned as it defended its one-ofa-kind “business model”.
The Department’s audit findings, which covered six years between 2017 and 2022, claimed the tax arrears had arisen because Sandals Emerald Bay had underreported gross revenue income for the period by more than $284m.
The dispute, according to documents filed with the Supreme Court, appears to result from the Sandals’ corporate structure and business model. All guest bookings and payments are made to the resort chain’s corporate parent, Sandals
seen reduced sales from our general large service customer classes due to lower energy consumption, the loss of our largest customer and significant inflationary pressures.
“We know there is no good time to propose a rate increase, but the requested adjustment is essential to maintain and improve the efficiency and reliability of services, and to allow us to invest in critical infrastructure maintenance as outlined in our system resource plan to enable the integration of renewable energy sources in keeping with the Government’s targets.”
Resorts International 2000, and its third-party booking platform and sales agent, Unique Travel Corporation. Both these entities are domiciled in Panama.
Rather than funds flow up the corporate chain, from subsidiaries to parent company, in Sandals’ case the money trail appears to move in the opposite direction - from Sandals Resorts International 2000 to the resort where the relevant guest has booked their vacation.
The crux of the Department of Inland Revenue’s assessment, and eight-figure tax demand, is that Sandals Emerald Bay over that sixyear period only declared the net income received from its parent and not the gross sum collectively paid by tourists to stay at the Exuma property. As a result, the resort both underreported and under-paid VAT and Business Licence fees for that period.
LEGAL NOTICE
TWYNAM INVESTMENT FUND LTD. Registration No. 149933 B INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000) In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the dissolution of TWYNAM INVESTMENT FUND LTD. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the Dissolution was 11th day of July, 2024
What investors should do when there is more volatility in the market
By CORA LEWIS Associated Press
U.S. stocks are bouncing back after the market experienced its worst day in two years on Monday, but the average investor may still be understandably spooked. Over a three day losing streak, the S&P 500 dipped more than 6% before rallying again Tuesday, up 1.6% in midday trading.
"This is what an emotiondriven market looks like," said Mark Hackett, head of investment research for Nationwide. "You had a three day period that was really very challenging. But the drop was not justified by the data that was out there, which is why you then have a day like today."
For everyday people, what are the best ways to handle market volatility? The top advice is to do nothing, but ultimately your response depends in
part on your circumstances and financial goals.
What to do in general
"It's important to remember that investing in the stock market is a long game. There's going to be volatility, so be wary of having a knee-jerk reaction and pulling your money out at the first sign of a drop," said
Courtney Alev, consumer advocate for CreditKarma.
"Selling stocks frequently or incrementally can come
with fees for each transaction and those can add up fast."
Caleb Silver, editor in chief of Investopedia, echoed this, cautioning that sellers may also end up owing taxes on any gains.
"For everyday investors, volatility is the price you pay to be invested in the stock market," Silver said. "But it's very unsettling when we see big market drops of two to
TRADER Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Photo:Richard Drew/AP
three percent… It's a little unnerving for people who have their money in 401(k)'s or IRA's or retirement funds to watch this magnitude of volatility."
Silver urged investors to remember that "a market falls into a correction, ten percent or more, once a year on average," and that "usually the market reverts to the mean, and the mean is an average annual return of eight to ten percent a year going all the way back to the 1950s."
What to do if you're a young or new investor
For younger people just beginning to invest, declines in the stock market are an opportunity to add to your portfolio at cheaper prices, by buying in when the market is falling or has fallen a lot, according to Silver.
"You're reducing the average price you pay
for the securities, stocks, mutual funds, or index funds that you own (when you buy in a down market)," he said. "So when the market itself reverts to the mean and rises again, you take advantage of having bought at cheaper prices, and that adds to the value of your portfolio."
In terms of selling, though, he said the best advice for most investors is to do nothing and wait for the volatility to cool down.
What to do if you're near retirement
"Whenever you invest in stocks it's important to be mindful of your time horizon," said Alev. "For instance, do you expect you'll need to liquidate in the near future? In that case, you're likely better off opting for a less volatile and more risk-averse mode of growing your money,
such as a high-yield savings account."
Silver agreed. "I don't believe it when people say, 'Don't look at your 401(k),'" he said. "You should absolutely look and see what you own and see that it matches your risk appetite." If it doesn't, you can move your investments to products that can shield you from the ups and downs of the market or unforeseen events. Silver said that High Yield Savings Accounts, Certificates of Deposit, and money market accounts are all currently seeing returns of about 4% to 5% for the more cautious or conservative investor.
Nationwide's Hackett said it makes sense to periodically rebalance the exposure one has in their portfolio in general - whether quarterly or annually - to make sure there isn't more risk than one would want related to, say, technology stocks or another sector.
UK GOVERNMENT CALLS ON ELON MUSK TO ACT RESPONSIBLY
By DANICA KIRKA Associated Press
THE British government has called on Elon Musk to act responsibly after the tech billionaire used his social media platform X to unleash a barrage of posts that officials say risk inflaming the violent unrest gripping the country.
Justice Minister Heidi Alexander made the comments Tuesday morning after Musk posted a comment saying that "Civil war is inevitable" in the U.K. Musk later doubled down, highlighting complaints that the British criminal justice system treats Muslims more leniently than far-right activists and comparing Britain's crackdown on social media users to the Soviet Union.
"Use of language such as a 'civil war' is in no way acceptable,'' Alexander told Times Radio. "We are seeing police officers being seriously injured, buildings set alight, and so I really do think that everyone
who has a platform should be exercising their power responsibly.''
Britain has been shaken by violence for more than a week, as police clashed with crowds spouting anti-immigrant and Islamophobic slogans in cities and towns from Northern Ireland to the south coast of England. The unrest began after right-wing activists used social media to spread misinformation about a knife attack that killed three girls during a Taylor Swiftthemed dance event on July 29.
Prime Minister Keir Starmer, who has described the riots as "far-right thuggery," said after an emergency meeting with law enforcement officials and government ministers Tuesday that perpetrators will swiftly be punished.
More than 400 people have been arrested due to violence in more than two dozen towns and cities and about 100 have been charged, after Starmer announced plans to ramp
up the criminal justice system.
An 18-year-old man who trashed police cars in Bolton, in northern England, on Sunday was believed to be the first person sentenced in the unrest. James Nelson got a two-month prison term Tuesday after pleading guilty in Manchester Magistrates' Court to criminal damage, police said.
"That should send a very powerful message to anybody involved, either directly or online, that you are likely to be dealt with within a week and that nobody, but nobody, should be involving themselves in this disorder," Starmer said.
Starmer deflected questions from reporters about Musk, saying his focus was on keeping communities safe.
The government is calling on social media companies, such as Musk's X, formerly known as Twitter, to do more to combat the spread of misleading and inflammatory information online.
Alexander said Tuesday that the government would look at strengthening the existing Online Safety Act, which was approved last year and won't be fully implemented until 2025.
"We've been working with the social media companies, and some of the action that they've taken already with the automatic removal of some false information is to be welcomed," Alexander told the BBC. "But there is undoubtedly more that the social media companies could and should be doing."
That type of rhetoric may be part of what sparked Musk's attack on the government. Musk has taken a more combative approach to his critics than was the norm in Silicon Valley technology firms, said Alex Krasodomski, who studies the intersection between technology and politics at Chatham House, a Londonbased think tank.
"He has sparred with U.K. and EU policymakers in the past when they have
MICROSOFT HITS BACK AT DELTA AFTER THE AIRLINE SAID LAST MONTH’S TECH OUTAGE COST IT $500 MILLION
By The Associated Press
MICROSOFT is joining
cybersecurity software firm
CrowdStrike in fighting back against Delta Air Lines, which blames the companies for causing several thousand canceled flights following a technology outage last month.
A lawyer for Microsoft said Tuesday that Delta's key IT system is probably serviced by other technology companies, not Microsoft Windows.
"Your letter and Delta's public comments are incomplete, false, misleading, and damaging to Microsoft and its reputation," Microsoft lawyer
Mark Cheffo said in a letter to Delta attorney David Boies. Cheffo said Microsoft was trying to determine "why other airlines were able to fully restore business operations so much faster than Delta."
The comments represent an escalating fight between the tech companies and the Atlanta-based airline.
Delta CEO Ed Bastian said last week that the global technology outage that started with a faulty upgrade from CrowdStrike to machines running on Microsoft Windows cost the airline $500 million. Bastian raised the threat of legal action.
On Tuesday, Delta said it has a long record of investing in reliable service including "billions of dollars in IT capital expenditures" since 2016 and billions more in annual IT costs. It declined further comment.
CrowdStrike has also disputed Delta's claims. Both it and Microsoft said Delta had turned down their offers to help the airline recover from the outage last month. Microsoft's lawyer said CEO Satya Nadella emailed Bastian during the outage, but the Delta CEO never replied.
questioned his approaches to content moderation on the platform," Krasodomski said.
X didn't respond to an email seeking comment. It rarely responds to media requests.
Musk just kept wading into the debate about the violence in Britain.
After Starmer posted a comment on X saying that the government "will not tolerate attacks on mosques or on Muslim communities," Musk responded with the question, "Shouldn't you be concerned about attacks on (asterisk) all(asterisk) communities?"
Musk attached a similar comment to a video that said it showed a "Muslim patrol" attacking a pub in Birmingham, highlighting the original post for his 193 million followers.
Such comments are vintage Musk, who has a history of making provocative statements, said Stephanie Alice Baker, a sociologist at City University of London who has
studied online discourse. Musk frequently comments on geopolitical issues and his fans come to his defense when he is criticized, Baker said.
Earlier this year, he clashed with a Brazilian supreme court justice over free speech, far-right accounts and purported misinformation on X. He also accused Venezuela's socialist president, Nicolás Maduro, of "major election fraud" after last week's disputed election.
Those comments are closely watched by a group of people attracted by his success in business, Baker said.
"Musk's following represents the cult of the entrepreneur …" she said. "By questioning convention, they are depicted as gifted visionaries, who can predict the future and bring it into being. For his fans and followers, Musk's impulsive comments are perceived as part of his genius."
THE MICROSOFT logo is displayed outside its French headquarters in Issy-les-Moulineaux, outside Paris, May 13, 2024.
