EC$13.5 million purchase price for DOMLEC Shares says PM Skerrit
The Government of Dominica acquired majority shares of the Dominica Electricity Services Company (DOMLEC) at a cost of EC$13.5 million, Prime Minister, Hon. Roosevelt Skerrit announced on Monday.
Emera proposed to sell the shares at the market price listed for DOMLEC shares on the Eastern Caribbean Stock Exchange, which is EC$3.50 per share. At that price, Government would have had to pay a total of EC$18.9 million for these shares.
However, we are happy to report to the House, and the people of Dominica, that following months of intense and cordial negotiations, that Government purchased the shares at a total of US$5.0 million, or EC$13.5 million, which is $5.4 million, or 28.6 percent less than the listed value.
Hon. Roosevelt Skerrit, Prime Minister of Dominica
On March 31, 2022, the Government of Dominica purchased 5,407,394 or 51.9 percent of DOMLEC’s shares from Emera Inc.
In his address, the Prime Minister also announced that a new transmission network is being built to relieve pressure on DOMLEC’s network, reduce losses and increase reliability; allow for the efficient and resilient transmission of hydro-electricity from the Roseau Valley; and provide resilience to DOMLEC’s electricity network by minimizing the damage caused by hydro-meteorological events and allowing for the quick reinstatement of power in the event of damage.
He further addressed the impact of the Russia-Ukraine War on the current cost of petroleum and petroleum products, resulting in a corresponding increase in the cost of electricity.
Your government is doing everything within its control to reduce the impact on families and businesses. We have urged the Independent Regulatory Commission (the IRC) to accelerate its review on the electricity tariffs, while the Government continues to push on to build and commission the geothermal plant. We are confident that with a reduction in the tariffs by the IRC, we can experience a reduction in the electricity rates.
Hon. Roosevelt Skerrit, Prime Minister of Dominica
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