The Anguilla Electricity Company Ltd. (ANGLEC) appeared to be ‘financially strapped for cash’ as recently as November 2021 when some members of the Board of ANGLEC announced via a radio broadcast, on Klass FM, that ANGLEC was having difficulty meeting its financial obligations to its creditors.
Chairman, Patrick Mardenborough, indicated on the radio broadcast that the Board of ANGLEC had met with the Government of Anguilla to discuss the state of affairs of the company. He further indicated that in the absence of Government paying its outstanding debt, ANGLEC “would have no choice but to implement some cost-saving measures that would impact the general public.”
At the time, those “cost-saving measures” included load-shedding which resulted in scheduled power outages throughout the island.
The Government of Anguilla has since settled some of the long outstanding debt to ANGLEC through an EC$4 million payment on arrears encumbered by two of its statutory bodies – the Water Corporation and ASPA.
The rising cost of fuel, resulting from the ongoing Ukraine-Russia conflict, has added to the financial hardship of ANGLEC. Consequently, the company has given notice to consumers that, effective April 1, a fuel surcharge of 45 cents per kilowatt hour will be added to their monthly electricity bills.
Since the announcement, the impending fuel surcharge increase has fuelled much debate and conversation on the island, and prompted the Board of ANGLEC and the Government of Anguilla to consider engaging in talks to address the increase.
The Government’s Position
Speaking at the Government’s press briefing on Monday, March 28, Minister with responsibility for Utilities, Mr Haydn Hughes, stated: “We are open to have discussions with them [ANGLEC] at any time, and have dropped things on their request. Since the load-shedding, there have been requests for meetings by Mr Hodge, Mr Mardenborough and Mr Lewis and we have granted those meetings every time and on every single occasion.
“The last communication we had with them was related to the fuel surcharge and we are still to meet on that. We are open to meeting at any time. We don’t want to have an acrimonious relationship with them, but the historical feature of ANGLEC has been acrimony with whatever Government there is. This is not tenable and, hopefully, we can have a great relationship as we move forward.”
Responding to a question – posed by media at the press briefing – regarding the performance of the Board of ANGLEC, Mr. Hughes indicated that he was not in tuned with the Board’s performance.
He said: “I have not been able to evaluate the performance of the Board. What do we perform evaluation against? I have been, in essence, on the road. I have not been at ANGLEC. I have ‘never’ been in ANGLEC. Once the roads are completed, I will take some time to be more intimately involved in ANGLEC.”
Performance of the Board, notwithstanding, Mr Hughes noted: “Whatever time the Board of Directors wants to meet with the Government of Anguilla, we are absolutely open to discuss any issue with them – as it has been in the past.”
[As a representative of the Government of Anguilla], “I would like to see a great running company, a company that incorporates God-given energy – which is renewable and reusable sources of energy.
“I would like to see a company that is financially viable – a company that can offer affordable electricity to the people of Anguilla, and a company that is well run and well managed. I believe that is also shared by the members of the Board of ANGLEC – that view, that vision.”
The Premier and Minister of Finance, Dr Ellis Webster, said that he “shares the view of Minister Hughes to see ANGLEC as a well-run company, and that the Government is available to meet with ANGLEC when they are available so that we all can find a way forward.
“The same day they announced that they wanted to raise the fuel surcharge to 45 cents, I wrote an email to the company saying that I was available at their convenience for a meeting. Since then, I have not received any correspondence stating when the meeting can be set up or asking for availability.
“To hear it being stated that Government is not available…we can only go based on mutual agreements of time, date, and where to meet. I think it is incumbent on the company, the Board of Directors and the Government of Anguilla to get together to make sure that ANGLEC continues to remain a viable company.
“As I stated last week, we have asked [ANGLEC] for the financials, we have asked for the cash flow. I think that we are entitled to that as the majority shareholder. We cannot continue to operate on phone calls saying what the cash position is without having any information specific to that.”
The Premier has stated repeatedly, at previous Government press conferences, that “ANGLEC is a vital asset to Anguilla and to the people of Anguilla, and has to be maintained and protected.” This week he emphasised that “this administration will do whatever it takes to maintain and protect it [ANGLEC] for the people of Anguilla who are the majority shareholders of the company.”
The Board’s Position
Some members of the Board of ANGLEC expressed concern over not being able to meet with the Government to discuss the proposed 45 cents increase in fuel surcharge announced by the Board.
Chairman of the Board (Mr Patrick Mardenborough), and member Max Hodge, spoke on radio on the issue.
Mr. Mardenborough said, in part: “We, as the Board of Directors, have a fiduciary duty to the company, not to the persons who placed us there, and not to any one shareholder. This company has never withheld any information from the Government of Anguilla. The Government of Anguilla needs to be proactive and not reactive.
“The Government of Anguilla knows that, by law, certain information cannot be given to them or to any shareholder. Unaudited financials cannot be given to one party. It is a public company and certain information cannot be shared.
“The 2019 audited financial is shared with the Government of Anguilla, and when the 2020 closeout meeting occurs, they will also get those audited financials. The Premier is not being genuine in his speeches when he says that we are withholding information.”
The Chairman indicated that when the Board reaches out to Government, it is difficult to get a response from them. “ANGLEC doesn’t want anything from the Government of Anguilla. All ANGLEC wants is for the Government of Anguilla to pay what is owed to the company,” he noted.
He went on: “We sent out the notice saying that we would increase the fuel surcharge to 45 cents. Before that, we wrote to the Government of Anguilla to see how we could ease the people of Anguilla and have a clear plan going forward in order not to burden [them] with another increase.
“The Premier was off island and they said that when he returned they would have a meeting. It was only after we sent him another letter, wrote them an email and said that, as of April 1, the surcharge would be increased by 45 cents – we got a response from the Premier.
“After the notice was sent out, the Minister of Infrastructure said at a press conference that a meeting was set up with the Board. [However], we did not get any notice of a meeting scheduled with the Government of Anguilla to discuss the fuel surcharge, [although] this was the second time we’d reached out to discuss the [matter].”
Board member, Max Hodge, noted that ANGLEC was too vital an asset to the people of Anguilla for politics to be played with it. He observed: “ANGLEC is a company that is needed by everybody, and what we are doing is playing games and politics with it. Some members come to the boardroom just to hear and be able to report rather than to contribute.
“It is disappointing, because at the end of the day, the only conversation I always have in the boardroom is, ‘I am here to make sure that the shareholders’ interest is looked at, the company employees are looked at, and the customers [are looked at]. While I am there, I will make sure to do what’s in the best interest of the company. When people are so stingy with the truth, it aggravates me.”
It is still not clear who is telling the truth.
As of March 30, a meeting between the Government of Anguilla and the Board of Directors of ANGLEC had not been scheduled. The increased 45 cents per kilowatt hour fuel surcharge is slated to be implemented on Friday, April 1 – April Fool’s Day.
