Prime Minister Hon. Roosevelt Skerrit has announced that Government has regained majority shares in the Dominica Electricity Services Company (DOMLEC).
The final agreement is set to be signed on, Thursday, March 31, 2022 between the Government of Dominica and Emera Incorporated.
Prime Minister Skerrit made this announcement while addressing the nation on Wednesday, March 30, saying that although there has been a marked improvement in DOMLEC’s services since Emera Inc. acquired majority shares in April 2013, it has always been the desire of this Dominica Labour Party Government to regain ownership of DOMLEC.
“We have enjoyed over the years a solid, professional relationship with Emera Inc. that has been defined by mutual trust and respect. This has categorized our discussions over the last several months as we have been in negotiations to acquire their shares in DOMLEC. I now have the privilege to announce that the Government of the Commonwealth of Dominica will on March 31, 2022 sign an agreement with Emera Inc. to purchase its 52% stake in DOMLEC. This means that from April 1, 2022, (and this is not an April Fool’s joke), the Government and People of Dominica will once more hold controlling interest in DOMLEC,” Hon. Roosevelt Skerrit stated.
He further explained that twenty-one percent of the shares will continue to be held by the Dominica Social Security and the remaining twenty-seven percent is owned by private investors mainly Dominicans.
PM Skerrit noted that this acquisition falls in line with Government’s plan to build a climate resilient nation.
“The acquisition of DOMLEC aligns with our goals to build resilience in the energy sector through deliberate action to improve energy security, and strengthen growth and economic prospects. As part of our vision for a Dynamic Dominica, we are pursuing greater efficiency in electricity generation to meet our national target of 100% clean, carbon neutral energy by the year 2030,” PM Skerrit added.
PM Skerrit explained that Government will now undertake upgrades of existing power plants and transmission and distribution lines to ensure a resilient power system.
“Enhancing the resilience of the power system will require significant investment to avert risks, minimize damage to infrastructure and avoid disruptions of service. As a matter of priority, the Government of Dominica will undertake further upgrades of transmission and distribution lines and fortify operations at existing power plants, to deliver a more efficient electricity supply to homes and businesses. These targeted efficiency measures, along with cleaner more affordable, geothermal energy, is expected to result in, lower utility bills, reduced cost of doing business, and job creation as a spillover effect,” Hon. Skerrit stated.
The Nation’s Leader cautioned citizens that the acquirement of DOMLEC would not automatically or immediately result in lower electrical bills, however Government will lay the foundation for that possibility.
“We do not want to create the illusion to customers that assuming majority ownership of DOMLEC, will immediately translate to lower electricity bills, but we are preparing the foundation for that. It is important to note that we will inherit the debt associated with the post-Hurricane Maria restoration of the electricity grid. Additionally, the cost inherent in reducing our island’s vulnerability to climate hazards, the adverse effects of the Russia-Ukraine war on energy and commodity prices, and an ongoing rate review by the Independent Regulatory Commission (IRC) could potentially impact how swiftly we are able to reduce the cost of electricity,” PM Skerrit noted.
He also encouraged Dominican’s to be more vigilant in paying their bills to ensure the sustainability and profitability over the long term.
“I must point out that the acquisition of DOMLEC by the Government does not mean consumers are now exempt from the payment of their bills. As owners of DOMLEC, Dominicans now have a more urgent responsibility to ensure the company’s sustainability and profitability over the long term. The Government of Dominica is also fully cognizant of our own responsibility to protect and serve the interests of DOMLEC’s shareholders, including current and future pensioners of the Dominica Social Security as well as the many regular citizens among you who depend on the payment of dividends to sustain their livelihoods. It is incumbent on all of us, therefore, to continue to meet our commitments to DOMLEC,” he went on to state.
Government will appoint a strong, diverse, and qualified Board of Directors, to help set the long-term direction of the company and ensure its sustainability.
Citizens were also assured, that Government does not intend to get involved in the day to day running of DOMLEC. Rather, the management team at DOMLEC, led by Mrs. Bertillia Mc Kenzie, will administer the affairs of the company, guided by their experience and familiarity with the company’s structure and operations.
PM Skerrit went on to describe this acquisition as historic, adding that the nation’s children will now have a stake in the development of energy resources in the country.
“The Government of Dominica is confident that the decision to acquire DOMLEC is in the best of interest of electricity consumers, the shareholders and employees of the Company, and Dominica. This is an important milestone for all of us and I am gratified that the efforts of this Dominica Labour Party Government to reestablish DOMLEC as a public entity have paid off. Indeed, it is an historic achievement of which we must all be proud. It is especially significant for our children, who now have a more personal stake in the development of this country’s energy resources and this improves our future prospects for energy independence,” PM Skerrit added.