Canadian company Emera Inc. to buy 38% of Barbados Light & Power Holdings Ltd.

“BLPC is consistently ranked as one of the top-performing electric utilities in the Caribbean for efficiency, performance, and rate structure.”

.. Chris Huskilson, President of Emera Inc.

What will the Emera Inc share purchase mean to ordinary Bajans?

Emera Inc. is a Halifax, Nova Scotia based corporation with it’s main investments and holdings in electricity generation and pipelines in Canada, the USA and the Caribbean.

If you check out their website you’ll see that they also have interests in alternative energy companies including wind farms, hydrogen and tidal power generation.

38% of BLPC is a fair chunk of shares and Emera didn’t purchase them without expecting a good return on the investment. Let’s hope that any increased profit-taking from the pockets of ordinary Bajan consumers will be offset by the increased knowledge and technology that Emera brings to Barbados.

Frankly, if we could be assured that Emera’s participation means that every time we turned on a switch we would receive nice clean power with no computer & TV-killing spikes or surges – then we’re all for the Emera Inc. deal!

Emera Inc. has interests in alternative energy sources including using tidal flows to generate power.

Further Reading

Emera Inc website

Press Release Emera to Acquire a 38% Interest in Light & Power Holdings Ltd.

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7 Comments

Filed under Barbados, Business & Banking, Consumer Issues, Energy, Offshore Investments

7 responses to “Canadian company Emera Inc. to buy 38% of Barbados Light & Power Holdings Ltd.

  1. snipes

    From what i’ve read Emera inc has bought C I Power which owns the 38% stake in LPH. If they had sought to buy the shares directly it would have to go through the BSE and make offers to all share holders. This would have been cumbersome and probably a long drawn out process as we evidenced wit BS&T, Bryden’s and to some extent Barbados farms. The thing they can continue to buy and sell C I Power at will and we do nothing about it; that is unless we can somehow get the local investors in LPH to pool their shares and form an entity which will consolidate the share owner to one of strength and clout.

  2. snipes

    sorry for the grammatical errors.

  3. I hate to rain on this parade, but those of us who have to live in the region where Emera has a monopoly are less than happy with the company’s’ performance and maintenance standards. Power outages are vitually guaranteed in any major storm, and are far from uncommon even in minor ones. We have the highest price for electricity in Canada, and Emera is very difficult to deal with if you are an independent, alternate energy supplier. Its infrastructure has been neglected to the point even a little wind will bring down the lines, and even the provincial regulator got on its case last winter, though they usually never criticise the industry

  4. Straight talk

    Can someone explain the raison d’etre of BL&P Holdings and what is their relevance and benefits to our authorised power distributor, BL&P.

    Is it just another non-productive parasitical call on BL&Ps bottom line, or does it perform an economically beneficial function for the country.

    I suppose my question is why is a foreign energy company buying into the holding company and not the core provider?

  5. Snipes

    BL&P has one (1) share holder which is Light and Power Holdings. The change to the ownership structure was done in 1997 with the shareholders giving approval by voting to give up their BL&P shares for shares in the holding company. The holding company is in turn controlled by the majority share ownership held by C I Power of Canada (38%). The largest block of local shares are held by NIS (23%).

  6. Snipes

    When the Brits pulled of Barbados way back when, their controlling interest in BL&P was acquired by C I Power, a Canadian company. The Canadians maintained control of BL&P until 1997 when the ownership structure was changed. This was done via the shareholders exchanging their shares in BL&P for shares in the new entity Light and Power Holdings. As a result of the change, BL&P effectively has one (1) shareholder, L&PH. At the time the reason for the change given was that the PUB act limited the ability of BL&P to expand to other services. Also because of its inability to get insurance for the outside plant, BL&P needed to set up a self-insurance facility, which the PUB act didn’t allow. Since the change the insurance is in place and we have seen TeleBarbados come on stream in addition to Antilles Crossing.

  7. Saint Nick

    We are a pint pot country with citizens who think in gill pot mode. The Barbados Securities oversees the sale of all types of shares, and, subject to recommendation could easily have blocked the sale. You may ask, why gill pot thinking?- because we would sell our mothers for a good profit if the price were right and we would never look back. This is the primordial reason why so much of our land is sold off to foreigners, why the BNB was sold, why Readi-Mix was sold and the list goes on. Always for a short term gain, such as temporarily boosting foreign reservesor making books look good or making someone rich, but never again to fall under control/ownership of local citizenry. If this trend continues, be assured that the only thing that you will eventually have will be a “X” and that may not even be worth anything. And to think that we keep saying we love BIM.