THE NEXT BIG STEP FOR NEVIS “This is the most important piece of legislation since the vote for our independence 25 years ago,’said the Hon. Carlisle Powell, Junior Minister for Public Utilities and Natural Resources during a session of the Nevis Island Assembly. The legislation referred to by Mr. Powell was the Geothermal Resource Ordinance. This ordinance provides the legal framework needed for the development of geothermal electricity on Nevis, both for domestic use and export. This was a necessary first step on the road to turning a natural resource into a viable economic asset that will generate substantial outside revenue to enhance government services, boost economic growth and reduce the cost of electricity for the citizens of Nevis. As Observer Reporter
John Denny notes in his story, there is much yet to be determined: “The unanswered questions yet to be worked out in the power purchase agreement are: “How much is West Indies Power going to charge Nevlec per Kilowatt/hour? “How long will it take for WIP to recover its development costs? “Will WIP be paid off for the development costs before Nevlec customers see any reduction in their electric bills? “Does transmitting electricity to St. Kitts constitute export or is it considered domestic? “The difference being five percent or 10 percent royalties paid to NIA by WIP. “Who will sell the power to St. Kitts, Nevlec or WIP?”These are the pocketbook questions. These are the questions that, when answered, will let Nevisians see how much their electric bills will decrease. In an era of rising price on the basic necessities, that answer is all-important. Some months ago, the head of Nevlec made it clear that reductions would be gradual and the amount was undetermined. That’s a rational statement, since making rash or overly-optimistic predictions isn’t good for the public or the credibility of the company. But Nevis is about to enter a new era. As the power purchase agreement is written, its contents should be made available to the public for review and comment. The Nevis Island Administration has many information outlets available to it to convey these facts, including this newspaper. No reasonable person can begrudge West Indies Power the right to a fair return on their investment in this project. They have used their expertise and their capital to set the stage for turning underground hot water into a valuable energy resource. Yet that resource is, in the truest sense, the property of the people of Nevis. Should this resource bring prosperity, all should prosper with it, for if it invites unforeseen calamity, the people of Nevis will have to live with that consequence. With this in mind, we hope the ministers of the NIA will inform the people of Nevis – whom they are elected to serve – about details of the power purchase agreement as it is drafted. This would give the people of Nevis the chance to register their thoughts on a piece of legislation that can have a tremendous impact on the future of this island. It is far too important to be left behind closed doors.
