Canadians grabs more Caribbean power
Barbados-based Light and Power Holdings (LPH) has signed letters of intent to acquire controlling interest in Dominica Electricity Services (Domlec).
The purchase from Florida-based WRB Enterprise will increase LPH parent’s — Emera — stake in Caribbean generating capacity by six per cent.
“The acquisition of DOMLEC is consistent with our strategy to build a business of scale in the Caribbean,” said Peter Williams, LPH managing director. “We believe our operational expertise, and our commitment to stabilising customer costs by introducing alternative sources of energy for electricity generation, create new potential for adding value to the benefit of customers in Dominica.”
LPH already owns a majority stake in Barbados Light and Power Company and 19.1 cent of St. Lucia Electricity Services (Lucelec), while Emera, a Canadian-based energy and services company, owns 80.4 per cent of Grand Bahama Power Company (GBPC).
The three Caribbean electricity providers have 452 megawatts (MW) of installed generation capacity combined, serving just over 200,000 customers among them. GBPC is set to build another 52-MW power plant on Grand Bahama Island.
Domlec, the sole electric utility for the Commonwealth of Dominica, has total installed generation capacity of 26.7 MW and serves 34,391 customers.
Importantly, the firm had a solid capital base of EC$62 million ($2.1 billion) and posted a net profit of EC$7.7 million for 2011.
LPH, which has 53 per cent of Emera’s generating capacity, had 690 million Barbadian dollars ($31.4 billion) in capital at the end of 2011, and netted 35 million Barbadian dollars in profit last year.
Emera, which bought GBPC last year, reported CND$124 million ($11.4 billion) in operating revenues and CND$4.6 million in net income for the Bahamian company last year.
LPH and WRB are working together to implement a continuity plan to ensure change of control activities occur with customer service and employee alignment as a priority. They expect to complete the transaction before the end of 2012.
The two companies have also agreed they will collaborate in the future on development of new renewable energy projects in the Caribbean.
