The Dominica government says it has acquired the majority shares in the island’s electricity company (DOMLEC) following discussions that began a year ago with the Canadian-based energy company, Emera Incorporated.
Prime Minister Roosevelt Skerrit in a radio broadcast, did not disclose the amount being paid for ownership of the utility company but noted that on several occasions he had expressed publicly “the need for us to take greater control of our energy security and correct a historic wrong, returning DOMLEC to the ownership of the Dominican people.
“This interest in the ownership of DOMLEC is predicated on the firm belief that our citizens are better served when the country’s main utilities, such as water and electricity, are in the hands of the State,” Skerrit added.
Skerrit told the nation that the former Dame Eugenia Charles government had acquired a majority shareholding in DOMLEC from the Commonwealth Development Corporation (CDC) but was later sold back to CDC in 1997 by a United Workers Party administration.
He said 72 percent of the shares were sold then for EC$21 million.
“This decision to sell was widely viewed as ill-advised, and against the best interest of the electricity consumers of this country,” Skerrit said, noting that the majority share ownership of DOMLEC has changed twice since 1997 and that on both occasions these shares were owned by foreign companies, with the most recent being Light & Power Holdings Ltd. (LPH) of Barbados, a majority-owned subsidiary of Emera Inc.
Skerrit said although there has been a marked improvement in DOMLEC’s services since Emera Inc. acquired majority shares in April 2013, ‘it has always been the desire of his administration to regain ownership of DOMLEC.
“We have enjoyed over the years a solid, professional relationship with Emera Inc. that has been defined by mutual trust and respect. This has categorized our discussions over the last several months as we have been in negotiations to acquire their shares in DOMLEC.
“I now have the privilege to announce that the government of the Commonwealth of Dominica will on March 31, 2022, sign an agreement with Emera Inc. to purchase its 52 percent stake in DOMLEC. This means that from April 1…the government and people of Dominica will once more hold controlling interest in DOMLEC. Twenty-one percent of the shares will continue to be held by Dominica Social Security and the remaining 27 percent is owned by private investors, mainly Dominicans.”
Skerrit said the acquisition of DOMLEC aligns with the country’s goals to build resilience in the energy sector through deliberate action to improve energy security and strengthen growth and economic prospects.
“As part of our vision for a Dynamic Dominica, we are pursuing greater efficiency in electricity generation to meet our national target of 100 percent clean, carbon-neutral energy by the year 2030.”
Skerrit said the government anticipates that the sustainable utilization of the country’s renewable geothermal energy resource in the Roseau Valley will enhance the resilience of the power systems, reduce the energy import bill, and help secure the island’s economic future.
“Our exploration of this readily available and more cost-effective energy option will promote shared prosperity, and further position Dominica to confront climate change challenges and other economic shocks.
“Recognizing the vulnerability of our island to severe weather events brought about by climate change, we will seek to enhance the integrated system for the generation, transmission and distribution of affordable and sustainable energy.”
Skerrit said enhancing the resilience of the power system will require significant investment to avert risks, minimize damage to infrastructure and avoid disruptions of service.
“As a matter of priority, the government of Dominica will undertake further upgrades of transmission and distribution lines and fortify operations at existing power plants, to deliver a more efficient electricity supply to homes and businesses.”
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