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I am Murray Skeete, Director of GRENLEC and Vice President of Engineering and Regulation with WRB Enterprises, the majority shareholder and operator of GRENLEC. Many of us remember that privatisation of GRENLEC was recommended to the Government of Grenada in the early 1990s by leading international industry authorities to help improve the reliability and quality of electricity service, reduce national debt, introduce new and more efficient technologies, control costs, and help support the nation’s economic growth. In a competitive bidding process, 50% of GRENLEC was sold to WRB Enterprises, a privately owned company that brought decades of energy experience and a proven track record in successfully rebuilding and upgrading other Caribbean utility companies.
In the 20 years since privatisation, Grenada’s severely outdated, inefficient and unreliable electric utility has been transformed into a world-class system providing reliable, efficient and universally-available service.
GRENLEC has been at the heart of change and growth in Grenada, investing more than $150 million dollars for capital improvements to modernise the nation’s electricity system. We fully recognise the challenges facing Grenada and other small Caribbean and island nations to control energy costs. However, the cost of electricity remains higher than we all want, due to a series of complex issues that confront most small island utilities around the world.

That’s why we have for the last six years proactively sought opportunities to join with the Government of Grenada and its advisors in order to develop broad-based solutions for stabilizing costs and developing a reliable, sustainable energy portfolio that accommodates renewable energy, energy efficiency, and least-cost planning.
The essential question for all stakeholders is how to achieve these objectives in a manner that is (1) economically sustainable, (2) does not sacrifice operational reliability and (3) is legally valid, reasonable and balanced. GRENLEC acknowledged that potential legislative and regulatory amendment should be considered in order to facilitate renewable energy deployments, and voluntarily offered to participate in negotiations along these lines.
GRENLEC contends that the small size of Grenada and its electricity system would prevent an efficient and cost-effective competitive market from functioning properly. ICF Resources, a recognised leader in international energy consulting with significant experience in Caribbean utility operations, conducted a comparative analysis of the power industry structure and potential for utility unbundling and competitive energy procurement in Grenada.
Again, GRENLEC has been actively exploring cost-effective renewable energy options since 1996, and aggressively striving to introduce renewable energy generation in Grenada since 2009.
Once again, although wind and solar power costs have been steadily decreasing world-wide for many years, the size of Grenada and the relatively small scale of any renewable projects that can be installed will result in significantly higher installed costs than would pertain on larger systems. At today’s lower fuel prices, most renewable technologies are not competitive with traditional fossil fuel generation. This belief is not only contrary to present experience in Grenada, but is counter to world-wide best practices. The draft bill provides an extraordinary amount of discretionary power and micromanagement control to the Minister and Government of Grenada. In summary, working under the current regulatory framework for over two decades, GRENLEC has succeeded in creating a world-class and highly-effective utility that serves the entire nation of Grenada. Turning Safe Search OFF may display content intended for mature audiences.You must be at least 18 years old to continue.

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I would like to thank the Government of Grenada for the opportunity to address this Public Consultation on the draft 2015 Electricity Supply Bill on behalf of GRENLEC’s management, shareholders and employees -- many of whom are here today, and have seen first-hand the remarkable changes and progress achieved by GRENLEC since the public-private partnership established in 1994. While we have had very little time to review the new Bill, we have serious concerns that several key proposals could have very adverse effects on the reliability and cost of electric service for the citizens of Grenada. Under our management, the system’s installed capacity, peak load and customer connections have more than doubled. Governments executed a Memorandum of Understanding which committed to facilitated discussions between the Grenadian Government, the United States Government, and GRENLEC focused on identifying, assessing and implementing optimal ways to address key electricity sector issues in Grenada.
It has been demonstrated repeatedly that private enterprise is far better than Government at managing and delivering essential utility services. Emergency operational systems and funding are in place to expediently restore power when devastating hurricanes hit.

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