The recently handed down partial ruling in the arbitration case between the government and the Grand Bahama Port Authority (GBPA) could impact a pending court case on whether the GBPA or the Utilities Regulation & Competition Authority (URCA) has regulatory power over electricity in Freeport.
The tribunal ruled that parliament has the right to enact legislation to govern utilities in the Port Area. URCA Corporate and Consumer Relations Manager, Juan McCartney outlined their position on the matter in June 2024. He said, “in 2015 when the Electricity Act was passed URCA was made the regulator of electricity throughout The Bahamas inclusive of Grand Bahama the Port Area.”
The issue was also addressed at the Clearing The Air town hall meeting held on Monday in Grand Bahama where several legal experts served as panelists to discuss the ruling. Attorney Greg Moss said, “the tribunal acknowledged there was a case on it but held that that didn’t stop them from ruling on it. So this dispute that was live before this decision as to who the regulator was and the Port Authority’s assertion that they were the regulators of their own licensees is now gone. The utility companies are regulated by whatever entity the government establishes by statute, which is presently URCA.”
Moss further explained that GBPA’s divestment of its interest in the Grand Bahama Power Company was a factor in the tribunal’s decision. “The tribunal held that the Port Authority could not make claims for rights allegedly infringe in relation to third party utility companies, that’s the first point. They said you sold all of those utilities, you used to own them but you sold them and if someone is gonna complain about it it should be the companies that you sold it too. You no longer have a right to assert that claim.”
According to Moss the tribunal’s decision will have significant impact on the case between the GBPA and URCA. He said, “it’s an arbitration tribunal that was composed of judges of high immanence in the Commonwealth world. And so this, no doubt, this ruling will be viewed by the courts as binding.”
The question of utility regulation was one of eight claims brought by the GBPA against the government for arbitration.
