96 responses to “Barbados Light & Power Responds To Love Letter”

1. 

   islandgal246

   July 20, 2011 at 3:04 pm

   
   

   @Anon…Well thank you kindly!

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2. 

   Johnny Postle

   July 20, 2011 at 7:24 pm

   
   

   Wow i like i struck a nerve. Thanks for correcting the spelling. I really cannot spell too well. No need to get so highly offended. Its just the way you describe hanging clothes like it is something detestable.

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3. 

   Rosemary Parkinson

   July 20, 2011 at 8:21 pm

   
   

   @Johnny…I answer you straight but to you it means you struck a nerve? And then yu advise me to not get so offended. No, me dear, you did not strike a nerve nor did yu offend me. You offended yourself. If you say something that I personally find outta order, I will simply answer. My nerves are good – I take tonic daily for dat! Offend me? No Sah…for this is my mantra “nothing others say and do is a projection of you. What others say and do is a projection of their own reality, their own dream. When you are immune to the opinions and actions of others, you won’t be a victim of needless suffering.” Perhaps you might like to take it up as yours too. Bless.

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4. 

   islandgal246

   July 20, 2011 at 8:47 pm

   
   

   PSSsssssssss……….Johnny de postle …… yuh dere? Want some more Bop?

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5. 

   just only asking

   July 21, 2011 at 7:02 am

   
   

   @Rosemary

   Somebody had to lead and you took up the issue and as a consequnce John give us some pointer. You need to be like me, sometimes ignore some of the people why try to berate you. If the slaves did not see the need to revolt, perhaps the system might have been still around,

   @John

   Contine your presentations.

   @X

   YOu do likewise and forget Islandgal. She needs to be cent to a ciilized school. She is always ready to attack people personally.

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6. 

   islandgal246

   July 21, 2011 at 7:52 am

   
   

   “YOu do likewise and forget Islandgal. She needs to be cent to a ciilized school. She is always ready to attack people personally.”

   For those of you who have a spelling problem, whenever a red line appears underneath a word, it tells you that the spelling is incorrect. Please right click on your mouse and the choose the correct word. It will not correct words used incorrectly like CENT when you mean SENT! Some words will always appear incorrect because it depends on the type of dictionary WordPress is using i.e. American English or Oxford English. Here endeth the lesson

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7. 

   RE Engineer

   July 21, 2011 at 3:57 pm

   
   

   @Rosemary P

   Your costs seem to be high due use of air conditioning and I could imagine how uncomfortable it must be for you to endure sweltering conditions to work. I have been trying to do some work while here on vacation and I can’t even seem to concentrate in this heat. I have a few tips for you (not sure if Mr Worme gave you any similar ones).

   You could install a ceiling fan or use a normal standing fan in your room with the air conditioner, set the AC temperature to 27 or 28 C and use both fan and AC simultaneously. This should create decent savings while providing you with manageable comfort levels.

   You should consider installing a hood over the window(s) in the room especially if they are south or west facing windows.

   Push out windows are also better than the push up ones if you are hoping for some breeze at night. Depending on the lay out of your room if you have a window face the windward side and one on the opposite side, open the window on the windward side as much as possible and the one on the opposite side only half way. This should enhance a nice little cross breeze.

   You could move your workstation as far away from the warmest wall as possible and if you could put a book case of something like that between you and the wall it would be better.

   These things should make your comfort level a bit better, since you should not sacrifice that if your work depends on it.

   Others things could include using an LED desk lamp for lighting when you are working at night.

   If possible you could move your refrigerator as far away as possible from the stove and any other sources of heat and make sure there is sufficient space between it an anything around it for good air circulation.

   As for the dryer that is a difficult issue if clothes lines are not possible, only thing I can think of to suggest is to invest in a small grid tied PV system which may not be economically viable for you at this time.

   You could get an energy monitor also. I bought one for my parents about 2 years ago and it has really given them a lot more awareness of their consumption and how to manage it better.

   There are also many other little things that may make things a little better but it depends a lot on the layout of your house and if you are willing to make modest investments to reduce your bill over time. I am a certified RE and EE engineering professional and I am willing to help for free if you so desire.

   Well, as X had mentioned, in the electricity bill what BL&P actually gets is a small fraction of the total cost. On my parents’ electricity bill which coincidently shows a read consumption of 299 kWh, the amount that goes to BL&P is 25.8% of the total discount fee. I have been imposing on my parents for many years now on how to conserve and I believe they are doing a decent job in a house with most modern amenities and 3 adults living in it. Consumption is usually between 200 and 300 kWh per month.

   I think the shock that is being seen in Barbados now, is that persons finally have to pay the real cost of electricity, and believe it or not Barbados is on the lower tier of electricity cost in the Caribbean.

   As Weston said yes we need to be looking for alternatives but sadly I don’t think energy prices will get cheaper with these alternatives. They will just be ways to brace us from increasing costs in the future. High oil prices cause a wave of increases in transportation costs and manufacturing costs so all the tools, wires, pipes, lubricants and whatever else is used for the entire generation, transmission and distribution system have become more expensive and will continue to become more expensive. Temperatures and weather are also becoming more extreme which is contributing even more to these issues in many parts of the world. I don’t think anyone should expect prices to go down in any significant way unless we go through another serious global economic crisis or we discover some new superior form of energy conversion.

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8. 

   Christopher Halsall

   July 21, 2011 at 5:08 pm

   
   

   @RE Engineer: “High oil prices cause a wave of increases in transportation costs and manufacturing costs so all the tools, wires, pipes, lubricants and whatever else is used for the entire generation, transmission and distribution system have become more expensive and will continue to become more expensive.

   So, then… Are you saying that we all are doomed?

   @RE Engineer: “Temperatures and weather are also becoming more extreme which is contributing even more to these issues in many parts of the world.

   I found it somewhat interesting that in the international news that many talked about how their solutions to ambient heat was to stay indoors within air conditioned spaces.

   @RE Engineer: “I don’t think anyone should expect prices to go down in any significant way unless we go through another serious global economic crisis or we discover some new superior form of energy conversion.

   Funny that… After the last global economic crisis (which we are still recovering from) we all faced energy cost increases.

   And, for some reason, a “new superior form of energy conversion” hasn’t yet manifested.

   Might you have a solution to this problem?

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9. 

   Christopher Halsall

   July 21, 2011 at 6:49 pm

   
   

   Resonating with the “problem”.

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10. 

    RE Engineer

    July 21, 2011 at 8:26 pm

    
    

    @Christopher H

    I am not about spreading doom and gloom scenarios but oil production and refining capacity hasn’t increased significant over the years and very few new fields are being discovered and few new refineries being built. Maybe the powers at hand have a trick up their sleeves but more nations are coming into the modern age and demanding more energy services. Additionally, population is growing with persons living longer. Finite oil resources, more consumption and less supply tends to point to an increase in scarcity and hence increased value.

    Well staying indoors in air conditioning compounds the problem due to the heat island effect so I am not sure how that could be a sustainable solution.

    At the beginning of the crisis energy prices plummeted but after a while began to rise again. A lot of the rising demand probably had a lot to do with China which has been doing quite well despite the recession. They overtook the US in terms of total energy usage and if their (Chinese) average per capita consumption becomes anywhere near that of North America then I couldn’t imagine what energy prices would look like. Add on to that that China holds a lot of the world resources in precious metals which are used in various equipment including batteries and magnets so they have been quite in control of a lot of the prices worldwide where there has been an upward trend as exports are restricted and more stuff redirected to push the development boom that is currently going on in China. Most countries haven’t recovered yet, so imagine when most do. The ripple effect is also deadly with all costs going up including food.

    Currently there is a lot of talk about liquid-fluoride thorium nuclear reactors, still ongoing research on nuclear fusion, there are theories that oil isn’t finite but seeps up from the core of the earth so we should be able to find a way of tapping into it. There are looking at capturing solar energy from outside the earth’s atmosphere and beaming it down in a highly concentrated form to power distribution centres. There are a whole heap of things going on out there in the energy world from plausible to highly improbable. No one knows what is the next big thing or if there will be a next big thing for that matter. For me and in my work and personal life what I have been looking at are more along the appropriate technology lines based on the standard laws of thermodynamics. Try to use energy in the purest form possible while avoid consuming too much plus avoiding the unnecessary things. Efficiency is more than skin deep, maybe there are whole processes that can be bypassed rather than looking to maximise its efficiency. There are a lot of things we can use more efficiently and over the years that is the only way that most businesses actually survived using as little as possible to produce as much as possible with optimum levels of quality.

    Paraphrasing from the video – some experts say it’s a problem, some experts say it isn’t a problem. However, we are the ones with the problem. So clearly we should all be looking to find some solutions.

    My life quotes is:

    “The optimist says the glass is half full. The pessimist says the glass is half empty. The Sustainability Consultant says the glass is twice as large as it needs to be.”

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11. 

    Christopher Halsall

    July 21, 2011 at 9:25 pm

    
    

    @RE Engineer: “The optimist says the glass is half full. The pessimist says the glass is half empty. The Sustainability Consultant says the glass is twice as large as it needs to be.

    Please support your argument.

    How is the glass twice as large as it needs to be?

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12. 

    John

    July 21, 2011 at 9:43 pm

    
    

    Looks like the Koreans have bought into the Jamaican power company. They don’t have as big a chunk as the Canadians do here but they do have a big slice.

    http://www.caribbean360.com/index.php/business/479531.html?utm_source=Caribbean360+Newsletters&utm_campaign=6a91e89e8c-Vol_4_Issue_29_Business7_21_2011&utm_medium=email#axzz1SnASaY7u

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13. 

    John

    July 21, 2011 at 9:52 pm

    
    

    Just a guess … but maybe that is the only way the Natural Gas pipeline will get built in the Caribbean …. power companies with the financial resources will do it and control their energy supply …. so maybe electricity prices may actually fall in the future.

    Does anyone know what is happening with the proposed pipeline?

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14. 

    Christopher Halsall

    July 21, 2011 at 10:02 pm

    
    

    @RE Engineer: “…there are theories that oil isn’t finite but seeps up from the core of the earth so we should be able to find a way of tapping into it.

    Do you actually believe that bull shit?

    Perhaps we can all fart in the general direction of a vacuum cleaner.

    Think of the slogan: “Pass gas; solve the world’s energy problem!

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15. 

    RE Engineer

    July 21, 2011 at 10:27 pm

    
    

    @Christopher H

    My quote is part jest part serious. For me it just highlights people’s differences in perspective. For some looking at a glass of water the whole idea would be that the water in the glass is a good sign – that at least we have some water so lets all be happy and grateful. To others it would be doomsday that water is running out and cause for panic that the worst is yet to come. To the ‘action man’ it would be a sign that we need to be more effective starting with adjusting size of the glass to efficiently hold its contents, a glass half the size can hold the same amount with the extra destined for something useful i.e see the opportunity to do something. Interestingly enough I believe all three perspectives have some merit.

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16. 

    RE Engineer

    July 21, 2011 at 10:41 pm

    
    

    @Christopher H

    Of course I do not believe that BS. I am a man of science and of logic and so far there is no scientific proof of such so I won’t be spending my life researching that or waiting for that to occur. However, from the history of science, many hypotheses are consider lunacy until they were proven, so who knows, maybe someone somewhere will prove us wrong, but until then I will working hard on my solar, wind, energy and water efficiency solutions. I leave all that type of locate-more-oil-control-and-oppress-its-rightful-owners research for the rich nations and I will be working with the plentiful and virtually untapped resources of my homeland.

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17. 

    John

    July 22, 2011 at 12:02 am

    
    

    I thought this was interesting information on web based power metering.

    http://techcrunch.com/2009/02/10/googles-powermeter-project-for-when-the-webs-data-is-not-enough/

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18. 

    John

    July 22, 2011 at 12:15 pm

    
    

    Looks like the Eastern Carbbean Natural Gas Pipeline Company has made it to wikipedia.

    http://en.wikipedia.org/wiki/Eastern_Caribbean_Gas_Pipeline_Company_Limited

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19. 

    Pat

    July 22, 2011 at 12:52 pm

    
    

    @ Ms. Parkinson

    In addition to what the EE engineer has said, I would suggest you install double glazed windows, if you can afford them. they keep the cool in and the heat out and are worth the $$. Failing that have BLP change your meter/or the meter reader. Meters do GO haywire at times and speed up. Ontario Hydor has had to re-imburse people in my area for charges billed as a result of defective meters. Your charges seem high for what you use.

    My security lights all have motion detectors attached and come on only with movement in the yards. Sometimes it’s just a neighborhood cat, a rabbit or even high wind, but they save money. In summer I use an outdoor umbrella type clothes dryer. In winter I half dry in the dryer and finish on indoor lines. I can afford to dry them fully, but I cheap.

    Just my two cents worth.

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20. 

    John

    July 22, 2011 at 6:21 pm

    
    

    The idea had its genesis with Patrick Manning, Prime Minister of Trinidad and Tobago, who announced in his annual budget that his country was going to undertake one of the largest civil engineering project in the Caribbean region.

    The project suffered a brief setback when Venezuelan leader Hugo Chavez petition intensely that the pipeline should instead originate from Venezuela and should transport oil rather than LNG.[1] Chavez further stated that the pipeline should continue to Cuba and the United States. Which added new dimensions of complexity to the project overall given length. It was mooted that transport liquid natural gas in a liquid form required super chilling the gas and transport of such long distances such as to Cuba would have required new points to re-chill the LNG to keep it in a liquid state during transportation.

    In March 2010 the Barbados indicated after a two year hiatus that it would seek to move toward the negotiations stage for the 177-mile (285 km) pipeline from Tobago to Barbados.
    +++++++++++++++++++++++++++++++++++++++++++++++

    Even Chavez wants a piece of the action. Clearly his goal is to get Venezuelan oil (liquid) to the US market.

    I would guess we will see major players in the laying of this pipeline in the foreseeable future.

    Major investors from Canada and Korea to be entering the energy market in the Caribbean must mean something very profitable will happen soon.

    We have some real estate offshore out there in the Atlantic Ocean that could be very, very valuable, maybe even onshore too!!

    I remember as a boy hearing my father, a Civil Engineer, speaking of the oil/gas potential from way back in the 1960’s.

    I have his maps and charts he used pore over. He would have been in his element with the mapping technology that exists now.

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21. 

    maat

    July 23, 2011 at 12:04 am

    
    

    Please allow me to make a few suggestions.
    In a time of protracted recession or of growth below 1.5% we should have an automatic freeze on the profits of monopolies, especially utility companies. If a company like BL&P needs to invest in essential equipment in such tough times, then government should raise the finance through bonds and have the money repaid at a time of economic recovery. Shareholders in BL&P must pay electricity bills too right? Or do they pay a lower rate? Surely they can have a heart and be willing to see that maintaining such high profits for their shares is destroying the economy for all of us.

    When we speak of renewable energy has anyone considered using bio diesel (made from used cooking oil) to fuel the generators at BL&P. I use it in my truck and I get better performance and apparently far reduced pollution out put. The process is far less complicated than refining crude oil and we could make arrangements to increase the availability of used cooking oil (of which I imagine we have thousands of gallons a day) by taking the waste from all those lovely cruise ships that would other wise dump it into our lovely ocean. That might be a smart way to really start greening our economy.Alternatively we could look at using the bio diesel in community power plants with contributors hooking up to house hold generators. Don’t throw it down the drain.

    Last of all we could try some civil disobedience and refuse to pay our light bill for one month. Let the BL&P feel what it is like to have greatly reduced income, as a collective demonstration of people power.

    Peace

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22. 

    RE Engineer

    July 23, 2011 at 1:02 am

    
    

    @ maat

    As was said by another contributor and also by the BL&P on numerous occasions on tv, radio and in the paper. On an average electricity bill about 75% of the cost is due to fuel and VAT. The other 25% is what BL&P actually pockets to run their operations. Which is by far one of the most efficient operations on the island in my opinion. Let’s say they make a 10% profit on what we actually give them. If they were to get no profit at all that would provide for only a 2.5% reduction in your overall bill. Or about $5.75 for the average user who has a $230 bill. The passionate outrage across the island is due to persons actually now realising the actual cost of electricity. It has nothing to do with BL&P. Check out electricity prices in some of the other Caribbean islands and compare their average salaries and those of Barbados. Also study how much does the average bank, insurance company and companies like LIME here make in profit yearly. BL&P’s profits are not in the least extravagant especially for a monopoly. Yes it is a monopoly and a critical service but it is also a business and yes the shareholders pay electricity bills etc. But if you were a shareholder/investor would you not want a return on your investment. If you have money deposited in the bank, your hard earned money and the bank turns around and says well it is hard times so no interest for you this year would you readily agree to that deal? Everybody shoutin but nuhbody ain’t lisning. BL&P is a natural monopoly on transmission and distribution but not on generation. Another generation company coming into the market ain’t gonna mekk it nuh easier, they have to buy the same oil run the type of generators and have the same type of set up more or less, governed by the same FTC rules.

    As for biodiesel there is a company called Amelot Oil (I think) that is doing that as far as I know, they had started in collaboration with the Future Centre and to my knowledge they get oil from different sources like Cheffette, other restaurants and they had some relationships with schools for them to bring in used cooking oil. However the amount of waste cooking oil is a drop in the ocean compared to BL&P’s consumption. I would estimate about 15 000 tonnes of fuel oil per month is required for BL&P operations. So if all used cooking oil were converted to biodiesel it wouldn’t make a huge impact and the biodiesel process doesn’t make a huge impact on the overall cost of the diesel either.

    All and all this is what electricity costs. We have little oil so we have to import almost all of it. Barbados’ fuel bill (for electricity production) is quite probably over $300 million per annum. So when we do the math who has to foot that bill along with the operation and maintenance costs of the whole thing? That is over $1000 per year for every single man, woman and child on this island (assuming a population of 280,000). The users have to pay, either directly or indirectly, we all have to come to grips with it. Civil disobedience is an exercise in futility.

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23. 

    John

    July 23, 2011 at 1:44 am

    
    

    Maat

    Please allow me to make a few suggestions. In a time of protracted recession or of growth below 1.5% we should have an automatic freeze on the profits of monopolies, especially utility companies.
    ++++++++++++++++++++++++++++++++++++

    The profit BL&P makes is determined by two things consumption of their product (sales) and their efficiency (costs).

    A recession should cause the demand for their product to fall … and hence their sales.

    They will respond by becoming more efficient at what they do.

    The net result of these two opposing forces on their profits (sales minus costs) will cause those profits to rise or fall.

    I would not be surprised if their profit is smaller next year because of the increasing awareness of their customers of the need to conserve energy … reduce their bill!!

    … nor would I be surprised if their profits increased because they did what they do better, faster and cheaper.

    I would know which force dominated by looking at their sales on their publicly available comparative financial statements.

    If they fell and their profit still rose …. hats off to them, they improved their efficiency.

    Why in heavens name would we want to penalise efficiency?

    Shouldn’t we be instead learning from them?

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24. 

    A. Freeman

    July 23, 2011 at 6:20 am

    
    

    Did the LPH directors not foresee the increase in earnings when they recommended that the shareholders accept the lower end of the KPMG valuation and therefore erred in their recommendation (if I am not mistaken the valuation range was around $26-$33 per share) or did they anticipate the increase in earnings and considered the $26 appropriate compensation for such?

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25. 

    Fair is Fair

    July 23, 2011 at 7:07 am

    
    

    RE Engineer
    Perhaps you should just stick to engineering and leave common sense to others.
    Why should ANY company be guaranteed a 10% profit when all their customers and suppliers are making losses or just breaking even?
    Here is why NOT!
    ….because then they would have no incentive to become innovative. That is why renewable energy has been such a low priority for BL&P?
    After decades of GUARANTEED profits, what R&D contributions has BL&P made to engineering or to Barbados?

    Do you think If there was still a law guaranteeing Cable and Wireless a huge profit on their old black house phones, that every man woman and child would now have a blackberry? and
    How do you know the efficient of a monopoly in the absence of competition? a one eyed man is king among blind men.

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26. 

    John

    July 23, 2011 at 8:00 am

    
    

    A. Freeman | July 23, 2011 at 6:20 AM |

    Did the LPH directors not foresee the increase in earnings when they recommended that the shareholders accept the lower end of the KPMG valuation and therefore erred in their recommendation (if I am not mistaken the valuation range was around $26-$33 per share) or did they anticipate the increase in earnings and considered the $26 appropriate compensation for such?
    ++++++++++++++++++++++++++++++++++++++++++++++++++++

    Is it only increased short term earnings that justified the higher price per share that Emera was willing to pay?

    I think the long term prospect for any enery supply company with plant based on oil supply is not good.

    I think there is alot more than short term earnings that would make the share price in a company increase.

    For example, and this is a guess for argument’s sake, suppose the directors recognised that the 80% of its generating plant which runs on oil needs in the long term to be phased out in favour of plant that runs on another form of fuel?

    Suppose the new shareholder had the werewithal (technial, finacial or whatever) to facilitate the changeover whereeas the existing shareholders did not?

    Suppose also, that the new shareholder, because of something it had which the other shareholders did not, found the purchase of shares in the company was attractive because it allowed it to participate in something much bigger than BL&P?

    Both parties win.

    Free Enterprise at work.

    There would be an element of criminality in a recommendation to shareholders to sell their shares if the directors took the position that the (suppose necessary for argument’s sake) changeover put BL&P in a weak position where the shareholders should sell their shares at giveaway prices.

    What determines share value at a particular point in time?

    One approach is to take the Net assets and divide it by the number of issued shares.

    That’s why the availability of the properly audited figures makes any recommendation by the directors far more transparent.

    If somehow it could be shown the books were cooked, and it seems to me that is not possible, and/or the share price was below what a reasonable person would expect,and it seems to it isn’t, then it is possible to question any director recommendation to shareholders to sell at a depressed value particularly if the books were cooked.

    If neither is he case, then the directors are beyond reproach.

    The principals of the “free enterprise” system then determine the outcome ….. unless Government steps in!!

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27. 

    John

    July 23, 2011 at 8:03 am

    
    

    …. oops, principles!!

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28. 

    David

    July 23, 2011 at 8:15 am

    
    

    Dear John, what is the role of the FTC on your scenario?

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29. 

    A. Freeman

    July 23, 2011 at 8:20 am

    
    

    John, thanks for the feedback regarding LPH. What are your views on why the C&W shares are trading at what seems to be a low price, with a dividend return of more than 11% over the last year?

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30. 

    Brutus

    July 23, 2011 at 8:30 am

    
    

    @Fair is Fair,

    BL&P does not have any guaranteed profits. If this was so the rates would have to increase as their non-fuel costs increase. And BL&P would be able to invest in the most expensive renewable energy plant they could find and pass the cost to consumers.

    How long did it take for BL&P to get town planning permission for the wind turbine at Lambert’s? Is that BL&P’s fault? There are other renewable energy projects that have been in the works for several years and it is not BL&P that caused the delays.

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31. 

    John

    July 23, 2011 at 9:15 am

    
    

    C&W/LIME or whatever is a ball of twine to me and I have not found the end to pull.

    I don’t quite understand how it works.

    Unlike electricity and water the method of revenue earning is not as logical.

    Consumption is not measured in time but in discrete units … fixed rate.

    The closest BL&P approximates to it is in its customer charge and demand charge but these are small components.

    Skype and other means should remove overseas calls as a large revenue generating activity but you still need DSL!!

    On the other hand cell phones must be a source of huge income for it as it seems everybody I see on a day is glued to these gizmos.

    I have not done much thinking about this utility as it seems impossible to control consumption and still derive utility.

    You are either in and pay, or you are not.

    I don’t like that.

    I prefer pay as I use.

    I prefer to use the underlying processes which generate revenue for a business and on which its costs are based in getting to an intuitive feel for value.

    The books are important too because they are a sanity check.

    I know you did not raise the other utility but venture to say that if BWA were a publicly traded company (yeah right!!) I would say its share value would be zero based on its books.

    Yet it is a monopoly.

    I think the electricity component in the water alone must eventually force Government to increase rates, and that is not considering that the source of its product is fixed …. and the limit reached more than a decade ago.

    Despite improvements in desal technology, electricity must make its attractiveness decline.

    I wonder if BWA pays the fuel charge on the electricity used to supply water at Spring Garden.

    It is possible to figure out on physical principles what the electricity component in the pumped water from wells is from an understanding of how the process works, not so easy with “desal” water.

    Please note, I would hate to see Government privatise the supply of water ….. but that is another story to tell!!

    This is kind of a long rambling answer to your question about C&W when all I should have said is “I don’t know”.

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32. 

    Fair is Fair

    July 23, 2011 at 9:24 am

    
    

    Neither John or Brutus have any idea what they are talking about.
    Profit not guaranteed? what was the rate case about then?

    Mr John – your last answer says it all.
    You dont know.

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33. 

    John

    July 23, 2011 at 9:36 am

    
    

    Dear John, what is the role of the FTC on your scenario?
    +++++++++++++++++++++++++++++++++++++++++++++++++++

    Audit, audit and then audit again!!

    Ensure that returns on shares do not exceed agreed limits.

    Ensure the measurement systems are adhered to.

    … but, shares do not fall under the ambit of the FTC.

    I doubt short term earnings are the sole attraction for Emera here and the Koreans in Jamaica.

    Maybe there is another explanation besides participation in something bigger but if the “free enterprise” system is at the root there shouldn’t be.

    Perhaps we need more info on the pipeline and its implemenation …… and perhaps more importantly, what is its competitor.

    Where else could supply fuel via a pipeline to the Caribbean area and how would it be delivered?

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34. 

    John

    July 23, 2011 at 9:40 am

    
    

    Mr John – your last answer says it all.
    You dont know.
    ++++++++++++++++++++++++++++++++++++++

    Couldn’t agree with you more!!

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35. 

    Brutus

    July 23, 2011 at 11:38 am

    
    

    Re the purchase of shares by Emera, let’s not forget what happened:

    – Emera first purchased the Light & Power Holdings shares held by Leucadia (38%), at BB$25.70 per share
    – Emera then made the same offer to all of the other shareholders of LPH
    – the directors of LPH engaged KPMG to review the offer. KPMG gave a range for the value of the shares but also concluded that the Emera offer was fair
    – the directors then advised the shareholders based on this and other factors

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36. 

    RE Engineer

    July 23, 2011 at 11:51 am

    
    

    @Fair is Fair

    You seem to be the one who doesn’t know what you are talking about. As Brutus explained they are not guaranteed any such profit margin. There profits depend on their level of efficiency like any other privately owned company. The whole point of the hearing was to augment their return on investment (which still isn’t guaranteed) to encourage better investment for the future . That is why the FTC came in do determine what kind of return on investment is fair and would encourage investment. I think LIME is a poor comparison since their product is very different. Do you know that in many cases many analysts believe one should not be charged for text messages since they ‘piggy-back’ on the packets already being sent to the phone so no matter how many you send it doesn’t really cost the company any more money to send them, so they are technically charging for something that is in essence free. BL&P can’t do the same since every electron that leaves their plant has a full associated cost, there is only one product in question, not multiple.

    BL&P has been researching for over a decade in solar and wind energy. It took them almost that entire time to get planning permission for the wind farm to no fault of their own and I foresee other road blocks if/when they proceed. Solar energy at the utility scale is only just now reaching economic viability and still has its inherent issues.

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37. 

    maat

    July 24, 2011 at 9:38 pm

    
    

    I think a lot of people thought the FTC was set up to give consumers a fair price for a product that somehow suits the needs of the overall economy.

    Decisions to give monopolies increased earning capacity do not seem reasonable. Everyone must share the weight of a recession, especially where some companies and shareholders face no competition for their product or service.

    Every other company or business on the island has to face reduced profits, to re adjust targets and to increase efficiency in troubling financial times, so why not the BL&P?

    A position could be taken by this company to assist the government (i.e the people) of this country, in the BL&P’s hundredth year of existence, in the midst of a recession, to cover some of the fuel costs, instead of passing them onto the customer. They could afford a 50% reduction in profits for a couple of years. The consumers would be grateful, they would have less late payments, the economy may recover quicker and the BL&P would establish a new character of corporate compassion.

    There are other companies in the country that have reduced their profit margins in order to maintain jobs, they have no guarantees that their investment will secure a certain level of return. Many of the companies that have taken the decision to accept lower profits face stiff competition, but have taken the position that they have made hay while the sun shone and will survive off the profits from the good old days.

    Corporate compassion stems from human compassion and the people that share in the profits from the BL&P are human beings.

    I do agree that marching up and down as a form of civil disobedience to demonstrate our dis satisfaction serves little purpose as it can be ignored, but not paying a bill for a month cannot.

    Show a little compassion BL&P

    Peace

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38. 

    RE Engineer

    July 24, 2011 at 10:24 pm

    
    

    @maat
    As was said before a 50% reduction in BL&P’s profits means a less than $5 saving on the typical bill. If BL&P absorbed fuel costs they would make a massive loss. When gov’t subsidised fuel cost for domestic customers they racked up a bill of almost $100 million.
    Electricity is expensive, face it!! Why is no one listening?

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39. 

    Hants

    July 24, 2011 at 11:13 pm

    
    

    Emera is a publicly traded company in Canada. They are in business to satisfy Canadian Investors.

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40. 

    David

    July 25, 2011 at 12:16 am

    
    

    Now that EMERA is calling the shots at LPH does the government of Barbados still have to guarantee foreign borrowings if it goes to the market to cover sovereign risk?

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41. 

    Christopher Halsall

    July 25, 2011 at 4:17 pm

    
    

    @RE Engineer: “Electricity is expensive, face it!! Why is no one listening?

    If I may go somewhat tangential, I had an interesting experience the other day…

    I was in a store buying a product. Because I’m known having been involved with the BL&P Rate Hearing, I’m often the subject to rants from those who think it’s my fault electricity is so expensive…

    Store Owner (SO): “The electrical bills are ridiculous. That company doesn’t need all that money — they don’t make any investments.

    CH: “Ummm… Yes, they do. How else do you think they generate and deliver electricity?

    SO: “They don’t need all that profit! They got enough money.

    CH: “Ummm… They are only allowed a 10% rate of return [read: profit] based on the Rate Base [read: their investment directly associated with their investment on electrical generation and delivery]. Why don’t you complain about Cable and Wireless, who are making much more profit?

    SO: “Don’t talk to me about C&W. BL&P don’t deserve that much profit!

    CH: “So, let’s talk about this. You’re selling me this product for $10. How much did it cost you to purchase?

    SO: “Ummm… I buy them 10 at a time for $88.

    CH: “So, you’re making 13.6% gross margin on your investment. That’s better than the 10% BL&P are allowed.

    SO: “That’s different!

    CH: “Why?

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42. 

    RE Engineer

    July 26, 2011 at 1:42 pm

    
    

    @CH

    I find your experience very interesting though not shocking. There seems to be a certain disdain for BL&P, I guess it is due to the fact that electricity is now seen as a necessity rather than a luxury while most LIME services are still more or less under the luxury headline. I think it is such a pity since BL&P makes profits that are mediocre compared to some banks, insurance and distribution companies, while providing quite efficient service. It doesn’t seem like the views of most persons will change anytime soon despite efforts to disseminate the facts. At least hopefully people would become more aware of viable alternatives and conserve energy so we can save some foreign exchange.

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43. 

    Christopher Halsall

    July 26, 2011 at 5:24 pm

    
    

    @REE: “There seems to be a certain disdain for BL&P, I guess it is due to the fact that electricity is now seen as a necessity rather than a luxury…

    I actually think it’s more likely that consumers are seeing their electrical bill increase just about every month, and assume it is because of BL&P making unreasonable profits.

    As you and I (and a few others) know, this is not the case — it’s entirely a function of the cost of fuel. As was made very clear during the Rate Hearing (and before and since) BL&P make no profit from this — they are simply passing on their cost for said fuel for the electricity generated.

    @REE: “…while most LIME services are still more or less under the luxury headline.

    I would argue that digital communications (telephony and internet) (ICT) are now as important as electricity for a people’s competitiveness. And that some individuals spend as much on digital communications technology and services as they do for electricity.

    @REE: “At least hopefully people would become more aware of viable alternatives and conserve energy so we can save some foreign exchange.

    Agreed.

    However, it always annoys me when people say “power from the sun is free — why don’t we use that free power?”.

    It is more accurate to say that the sun’s energy is free. But workable power from that energy involves infrastructure and thus investment.

    It could be equally argued that oil is free — it is just laying there in the ground (and was created mostly thanks to our sun).

    But extracting that oil, and converting it into power, takes investment.

    Fundamentally, no workable power is free.

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44. 

    Micro Mock Engineer

    July 27, 2011 at 2:40 am

    
    

    @CH,

    That store owner’s gross margin on the item you bought was 12%. His markup was 13.6%. It doesn’t take away from the point you made, but I know you are a stickler for accuracy 🙂

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45. 

    RE Engineer

    July 27, 2011 at 3:22 pm

    
    

    @CH: “I actually think it’s more likely that consumers are seeing their electrical bill increase just about every month, and assume it is because of BL&P making unreasonable profits.”

    I agree with you that that is the concept most seem to hold in their minds. However, in my experiences, after explaining the facts about how much profits BL&P actually receive the retort is that they should subsidise it for the people and they should absorb costs in some form or fashion because it is killing the people, and people cannot be expected to live in the dark or in the stone ages. That is why I say people see it as a necessity rather than a luxury.

    “I would argue that digital communications (telephony and internet) (ICT) are now as important as electricity for a people’s competitiveness.”

    I agree with you 100%. However there are a lot of persons that don’t see very high speed internet or a blackberry service as a typical everyday necessity. Especially many members of the older generation. Beyond a standard land line service and perhaps a very basic pre-paid cellular service, some people view all the other things as unnecessary in their daily lives. So their spending or perceived importance of ICT is much lower than that of electricity.

    “But extracting that oil, and converting it into power, takes investment.”

    Agreed and over the years there has been less investment in oil refineries because it is an expensive exercise with low return on investment. Even oil exploration has been waning since it is an capital intensive task where recent discoveries have been underwhelming.

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46. 

    gas grill easiest to clean

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