The government of Dominica could once again become the majority shareholder of Dominica Electricity Services (DOMLEC).
Prime Minister Roosevelt Skerrit announced at a press conference at the Dominica State House on Thursday, that his government is not ruling out the possibility of acquiring the majority shares of Dominica’s sole electricity company.
“In respect to DOMLEC, the government is not ruling out the possibility of engaging the main shareholder of DOMELC with the view of the government acquiring the majority shares in DOMLEC,” he said. “I believe that by doing so we would address the historic round, because I believe fundamentally that the issue of water and electricity should remain in the hands of the state.”
The Prime Minister made it clear that his government has a great relationship with the majority shareholders and the management of DOMLEC.
“So it’s not like we have any issues with them, but we believe, especially with the advent of the geothermal and our thrust towards the use of renewable energy, I think this will place Dominica in a much better position,” Skerrit stated. “So I am throwing this out to the public, but as the days and weeks go by I will be in a better position to firm up the government’s position in respect to this matter.”
If the prime minister’s announcement materializes, it will not be the first time that the Dominica government holds controlling interest in DOMLEC.
In 1993, the company offered a ‘rights issue’ to shareholders of two shares for every one owned. Many shareholders did not take up the offer but the then Freedom Party government did, and so their shareholdings increased to 72.9%.
On 23 March 1997, the Commonwealth Development Corporation (CDC) purchased 72.8% of the shares from the government thus making CDC the majority shareholder.
In May 2004 WRB Enterprises of Tampa, Florida and Dominica Social Security, in a collaborative effort, purchased CDC’s shares in DOMLEC. These companies bought 52.8% and 20% of the shares respectively.
In April 2013, Light & Power Holdings Ltd. (LPH) of Barbados, a majority-owned subsidiary of Emera Inc., an energy and services company based in Halifax, Nova Scotia in Canada, acquired a 52 percent interest in DOMLEC from WRB for EC $20.6m.
Light & Power Holdings, an investment company with electricity being its core business, has a majority interest in The Barbados Light & Power Company Limited and holds a minority interest in St. Lucia Electricity Services.
The Dominica government has stated that it hopes to make Dominica the world’s first climate-resilient country with a cheaper, cleaner, more reliable source of energy.
A state run utility is, in effect, owned by the people of Dominica. When the previous administration sold DOMLEC to an outside corporation they basically stole it from we the people. Since then we have been paying for the most expensive electricity in the Caribbean, and where have the profits gone? …overseas! We also lost the ability to shape our own energy policy with regard to renewable technology. So I welcome this move. I would love to see a few acres of solar panels installed in the rain shadow area of Grand Savanne, or in the uninhabited dish of Morne Rachet to supplement our energy generation capacity.
Dem fellas apparently monitoring the Grenadian government recent re-acquisition of the majority shares in the sole power company in Grenada ie GRENLEC.
Caribbean people, all you must pay closer attention to the news & happenings in the different islands. There are some interesting observations to be …….ummmm…..observed.
With competing priorities, how long after Hurricane Maria would it have taken to restore services if the government was the majority shareholder of Domlec?
But Lizzard do you even know that Domlec was fortunate to source an unprecedented loan from World bank, that helped a whole lot? This is one or government can do, we all stand to benefit.
This is a bad move, it reminds me of Venezuela where the GOVT took over The Water Company, The Electrical Company and Telecom Company.
All these companies have failed miserable in Venezuela….Lights and water outages for weeks is a normal occurrence with higher prices. The Telecom company don’t even have monies to pay its INTL partners.
The GOVT need to put price regulation is place to protect consumers rather than own these companies…..we don’t need GOVT owning these organization. Especially this GOVT which has a very highs failure rate on managing business.
This is nothing about “lower price to consumers” but Consolidation of Power by this GOVT in the utility companies to further impoverish and establish heavy handed rule on its people.
IF Skerrit buy Domlec we finish! Power outage all week long
Dominica government or Roosevelt Skerrit? Soon you will hear he that have majority shares. More curruption.
Ownership is one thing and management is another. Without efficient and accountable management, together with technical expertise, we will still pay over the odds for electricity.
Skerritt want to make everything in Dominica his cash cow including Domlec.
Good story, nice reporting DNO thanks for the chronology. I believe this is one of the very best investments this govt can make. It’s very hard to believe that as recently as 3013 the 52% was being tossed around for only $20 mill, and we didn’t even attempt a hostile takeover, offer 25, even $30mill. I still think this is a do or die situation.
Come on you all, no need for the thumbs down – I’m no smarter than a3rd grader but even my 3rd grader can sniff out a typo @ “2013”
I think that this movie is to give “light” to the geothermal agenda. DOMLEC will then buy and own the geothermal plant in laudat and the rest will be history! The government through DOMLEC will have 2 sources of renewable energy, hydro and geothermal under it’s control…… but……. will de government sacrifice a little profit and lower the fuel surcharge on consumers light bill??
You should have buy it when you had the opportunity. But then you let your Bajan Friends acquired it.
Shame on you.
It wasn’t him who sold it (DOMLEC) for 30 pieces of silver!
Shame on you!
You should be happy such a move is thought of.
“Thought about”- So many things are ‘thought about’ by this pathetic regime but don’t materialize. International airport, geothermal energy, new cruise village, Roseau enhancement, electoral reforms,……….
What I’m pinpointing is simply this fact. Skerrit is a pathological, compulsive liar who makes fake vows to grab headlines. Even Skerrit himself is quite shocked when people believe him.
What kind of government in this century takes only government lead by DICTATORS.
The formula today is just fine, the government already are the regulators.
The only thing thats necessary today is to cap the profit margin of DOMLEC, to ease the customers
You can manage the government affairs with honesty and transparency, thats where you want to filter your corrupted funds.
Mr. PM I’m sorry but nothing you do is with good intentions, you paint this pretty picture to the public and your agenda is alway hidden.
Water and electricity can be considered to be indispensable commodities. In a small country, like Dominica, the government should be the majority shareholder. A foreign company, having the majority interest in any of the two or both, can blackmail the country or increase their profitability beyond the reach of the poor man to obtain purchase.
Having posited that, this present government has failed at everything. It’s rather a scary proposition for it to take a controlling interest of an essential resource as electricity. First order of business for them would to pack the Board with political misfits and cronies. Then appoint their rabid supporters in key positions throughout the company.
Having Skerrit and his inept entourage with controlling influence over the distribution of electricity nationwide is like putting a group of circus performers in charge of the main hospital.