Commerce Crippled From Electricity Costs

Fri, Jan 6th 2012, 09:49 AM

Exorbitant operating costs have made it extremely difficult to conduct business in The Bahamas for the past two years, particularly for the small-and-medium-sized enterprises.  It's for that reason alone PLP candidate for the Tall Pines Constituency Leslie Miller says he doesn't see 2012 as a stronger economic year than 2011.  For him, the number one problem is the high cost of electricity that has doubled and in some cases tripled.

Miller told Guardian Business these actions will continue to hurt business owners throughout the country. It will also destroy the country's number one industry - tourism.  Owning businesses such as Mario's Bowling and Entertainment Palace and Sunburst Paints, the high cost of electricity is something Miller said he has experienced firsthand.  "When we first started the bowling alley in January 2009, our light bill averaged $28,000. Now, it is nearly $50,000 per month," he explained.

Miller pointed out that most of the expense lies in the fuel surcharge implemented by the Bahamas Electricity Corporation (BEC).  "The fuel surcharge takes up two thirds of the bill. You might ask yourself why am I paying BEC $38,000 out of a $50,000 bill. When in fact, I have only used $12,000 worth of electricity. I find this to be quite disheartening," Miller said.  He said this has to be corrected soon before businesses continue to collapse. Given the current economic landscape, Miller doesn't feel there will be much difference in 2012.

In fact, he believes the economy could worsen.  "I feel the country's economic climate could worsen if the expected downturn in the American economy takes place. Europe is in serious trouble. Of course when they are in problems, we are in serious problems. I think Bahamians need to cut back as much as we can," according to Miller.  Miller also predicted this will negatively affect the country's employment numbers.

"If things continue as they are now, you are going to see a lot of layoffs. I am very concerned about the welfare of the Bahamian people," he noted.  "During these times it's hard to get an increase in salaries. While salaries are not increasing, the cost of living is. If we are catching hell as businessmen, think of the average homeowner."  Another factor Miller feels will heavily influence the Bahamian economy is waiting to see the outcome of the upcoming general elections.

"It's going to be extremely difficult because you are going to find most major entities holding back with their expansions.  Then there are those smaller businesses that are just struggling to stay afloat," he said.  "The sooner we get this election behind us, the better off we will be. I think after that, more investors will look at The Bahamas to see what opportunities are available to them".

As the cost of fuel continues to skyrocket, Miller remains adamant that if The Bahamas had signed on Petro Caribe, life would have been better for all Bahamians.  "If we had seriously looked at LNG, the cost of electricity for BEC would have been down by 18 to 22 percent," he said.  The key to survival, Miller believes is cutting back as much as possible whether it's through carpooling or prudent shopping.  "Until things get better, we must be aware of our expenses and be mindful of how much we are in fact spending," Miller noted.

Click here to read more at The Nassau Guardian

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