General Manager (Bahamas Electricity Corporation)

The Caribbean is a highly attractive yet competitive destination for FDI with, for example, the British Virgin Islands and Cayman Islands making strides in the area of financial services and Jamaica securing large investments in renewable energy and the ICT/BPO industry. In your opinion, what does The Bahamas offer that makes it the regional investment destination of choice?

Firstly, I think that our main asset would be the people of The Bahamas. They are very unique in terms of their interaction and friendliness with other people. While that is certainly an attraction to The Bahamas, the benefit is also that we have a strong workforce made up of highly educated, qualified, and trained individuals which makes an investor’s task of seeking human resources that much easier . When you couple that with a stable regime, a good legal system and suitable regulation, I believe we find ourselves as a prime choice for investors.

In terms of the energy, how would you describe the energy sector today in the Bahamas?

The energy sector today in The Bahamas is one that is presently in transition. There are two main areas that we are focused on improved reliability as well as the reduction in the cost of electricity. These are things we are presently addressing as energy sector reform legislation was tabled in Bahamian Parliament (November 2015). A major component of that legislation is a move to private management of the Bahamas Electricity Corporation which will become a new company, Bahamas Power & Light Co. Ltd. This transition is expected to help to cause further reductions in the cost of electricity as well provide access to resources to improve reliability across The Bahamas.

For more than 50 years, Bahamas Electricity Corporation (BEC) has operated generation, transmission and distribution systems throughout The Bahamas. It is the only state-owned electric utility, today operating 29 generating plants at 25 island locations. In your opinion, how successful has the entity been over this period in providing customers with safe, reliable electricity in a cost effective manner?

The Bahamas Electricity Corporation became a state-owned corporation on October 1, 1956; however, electricity service was publicly distributed in the Bahamas since 1909. Over this period there have been many successes and some challenges along the way.

One of our major successes was the Family Island Electrification Programme that began in the 1980s and it continued into the 1990s. BEC went throughout the archipelago and installed power stations and transmission and distribution systems in many islands where commercial power was not readily available. This was a major feat for the country as we were able to provide many residents with their first access to household electricity.

We have made significant strides over the years including the expansion of our generating fleet to provide more electricity to a growing population as well as the procurement of efficient machines able to reduce the production cost of the electricity. There was also considerable focus on negotiating the best possible fuel contracts to help contain electricity costs.

As I have stated, we have had challenges, including the financial viability of BEC in recent years. Nonetheless, I can say with confidence that we have done quite well based on our limitations.

In July, US publicly traded company Power Secure was appointed to manage the new Bahamas Electricity Corporation (BEC) and transition to a new entity tentatively named Bahamas Power and Light. Could you explain to the readers of HBR what prompted this decision?

To explain, at this point (November 2015) a management agreement has not yet being signed with PowerSecure (November 2015). However, what we do have is a transitional service agreement whereby they would carry out more due diligence and produce a draft of a proposed business plan. Once that is approved along with changes to the legislation (Part of the energy sector reform process requires the present Electricity Act to be amended in order to facilitate a new structure that will allow for a management company to come in and manage) then a management contract will be signed.

What lead to this is the present under-capitalization of the utility.  In 2013 the government would have issued a request for proposals for firms to bid on both the generation side of the business as well as the transmission and distribution side of the business. The intent, at that time, was for equity participation on the generation side where a new plant and additional generation is needed and has been needed for some time. After receiving those bids a decision was then made to forgo equity participation and consider a management contract for the entire organization. Firms were shortlisted and at the end of the day the recommended bidder was PowerSecure. The intent is that BEC will remain a holding company. A subsidiary company has been created, Bahamas Power Light Company Ltd., and that subsidiary company would be the company that PowerSecure would oversee from a management perspective commencing in 2016.

Currently serving many of the largest utilities in the US and boasting one of the best utility rates in the industry, PowerSecure no doubt has the technical and financial capacity to manage the new - but still 100% Bahamian-owned - BEC. From your perspective, to what extent will this move benefit residents and businesses in the country?

The intent is to improve reliability, to help to reduce the cost of electricity, to bring in new technologies, provide further exposure to the staff, as well as to continue to promote the environmental aspect- particularly renewable energy. Financial viability is also important.

One of the key things that I think this relationship will bring is greater emphasis on operating a viable business in a modern society. In the past, other interests have made it difficult to achieve this goal; however, I am confident that with a private entity managing BEC the focus will be a lot different. This is something, I believe, the Bahamian people can look forward to.

Energy in the Bahamas is heavily dependent on oil and diesel generation. Does BEC have any plans to adopt cleaner energy?

We have identified several Family Islands where we would like to complement the existing generation with renewable energy, solar in particular. The government has also signed a memorandum of understanding in regards to an initiative that has been designed to promote renewable energy and reduce the carbon footprint.

The other aspect is to allow for greater interconnection for residential and small commercial customers. Renewable Energy Self Generation (RESG) legislation has passed in the Bahamian parliament to residential off grid ties and we expect some of our customers to take advantage of the opportunity to be able to self-generate. Additionally, as a company BEC/ BPL would be looking at renewable energy on a utility scale where we will closely at how we produce power in our operations s in the Family Islands.

How want to be perceived internationally?

The goal is to be looked at as a well-run business or that provides excellent services to the citizens of the country. Electricity seems simple enough a term but in actuality it involves so much more: the production, the cost, the interaction and the customer.

We want to be recognized as a utility that makes better use of technology to get us to where this organization needs to be. We want to be on the cutting edge of everything this industry has to offer so that we are able to provide an improved experience to the end user. The experience with BPL should be no different than what you would have at some of the top rated utilities around the world.

Corporate social responsibility is an invaluable way for entities to give back to the communities in which they work. What initiatives are you currently, or have you been, involved in and which ones are you most proud of?

Though quietly, our company is involved in a number of local projects, most of them involve the youth in our country.  We believe that any impact we have on them provides a brighter future for not only them but the entire country.

BEC has been involved in the Junior Achievement Programme for many years. The programme mentors high school students interested in the field of business.  Similarly, a programme I am most proud of is our BEC Math Clinic. Employee volunteers spend just over half a year, each year, preparing high school students for national mathematics examinations and the junior high school and senior high school levels. We are aware of the need to improve math proficiency in our nation’s youth and our free clinics for students has helped many of them do well on those examinations. We have had a remarkable success rate, once the students commit to the programme.

BEC also provides funding to the National Primary School Student of the Year Programme which is hosted by the Bahamas Pan-Hellenic Council and we also provide funding to the National Spelling Bee where our winners advance to participate in the Scripps National Spelling Bee (USA).

This, in addition to many other charitable programmes locally, has given BEC a solid reputation as a corporate steward.

As you know every company needs to have a clear set of goals but it’s the vision of its leader what can enable it to reach these objectives. Given you have been in the company for 34 years, what is the legacy you - as the current GM of BEC - would like to leave?

From my perspective, I believe most in the human potential that exists within BEC. Technology will change, engines will become obsolete; however, it is the people in an organization who truly define what success is to be had, if any.

We have strong organization made up of many talented and trained professionals capable of not only maintaining existing standards but quickly adapting to the ongoing changes that will take place. It is imperative that we not lose focus on the importance of our ensuring our human resources are equipped to handle these changes. For me, we have a strong footing and I trust that we continue to build on it in years to come

Similarly, we have enjoyed industrial harmony in recent years, the importance of which cannot be overstated. An organization with management and staff working on one accord will prove mutually beneficial for all stakeholders.

Finally, I believe we have done well and must continue to encourage mentorship and career development. Our goal is to see each employee, no matter what level they join at, to grow to meet their full potential. There are few organizations that see the value in this, but those that do are destined to do well. An employee who is believes in where they work will give 100% more than one who doesn’t. We have a good group of these individuals now and my hope is that they continue to be the backbone of this company in years to come.

To conclude the interview, as you know Harvard Business Review’s readers include many of the world’s most influential business and political figures. What final message would you like to send to send them about The Bahamas and the BEC?

The Bahamas is a very good place not only for vacation but also for major investment-. We are a lot more than sun, sand, and sea.  We offer something unique, not as one land mass but as an archipelago where countless opportunities that exist in our many islands.  . This, in itself, sets us apart from many other countries in the region.

As it relates to BEC, we are in transition to move from the state that we are presently in to become one of the best companies of this size and character in the region. Beyond that we would eventually like to be benchmarked with any other utility around the world. For that to happen there would be opportunities for local and international firms to help achieve these goals. We see opportunities for financial investment, technological advancements in generation and information technology, as well as human resource development. As an operation, we are very cognizant of the need to make certain improvements and we realize that it will be a large scale effort for us to achieve our goals.

One of the things I tell to our staff is that theoretically we are a monopoly being the state-owned utility. However, in practice, we are not a monopoly because each and every company in the country relies on us in order for them to be able to compete with the rest of the world. Therefore, we are in the game with them and whatever improvements we make would assist them in being more competitive. Once we focus on that, then I see no reason why we can’t succeed.