The cost of electricity in The Bahamas is a significant economic burden. This government has promised to lower rates, but when and how?
The Bahamas Hotel and Tourism Association (BHTA), tired of waiting for government action, has taken a step forward to combat high energy costs by initiating energy audits.
While the organization should be praised for the initiative, other Bahamian businesses and homeowners cannot afford both the cost of an audit and its recommendations. The health of the overall Bahamian economy requires greater efficiency, not just in the tourism industry.
The government should lead by example and conduct a transparent energy audit and retrofit of its own buildings. Such an exercise has been promised during its tenure, but when? Perhaps, the government finds it difficult, like the Bahamian businessman, to afford the audit and recommendations under the burden of rising debt and electricity costs that hold it hostage.
Finding the money to spend to ultimately save is elusive to many Bahamian businesses.
An energy audit is a detailed inspection of a building's energy use over time to determine measures for greater efficiency resulting in cost savings. Energy efficiency is avoiding energy consumption in the first place. Efficiency is more than just turning off lights; it is a progressive reduction in energy needed to power basic appliances.
The Energy Star program started in 1992 is perhaps one of the most recognized labels for a product meeting efficiency thresholds. Products carrying the Energy Star label typically use 20 percent to 30 percent less energy. Consumer demand coupled with U.S. regulations has fostered innovative methods to make appliances more efficient year after year.
The government must expand duty exemptions for such products to encourage Bahamians to buy newer more efficient appliances at reasonable prices. Already, hybrid vehicle owners enjoy significant duty and gasoline savings over traditional all fuel vehicles. Most importantly, Bahamians must be able to afford the upfront costs to benefit from future cost savings.
The previous government offered a CFL lightbulb and solar hot water heater giveaway to qualified applicants. Such initiatives are important educational tools and should continue to be encouraged.
Our high cost for electricity is the primary driver for investing in some form of energy efficiency be it an energy audit or Energy Star product. But The Bahamas should also welcome greater efficiency to ease the burden of supplying power to an expanding population.
BEC is a corporation. It makes money by supplying power, and reducing demand will result in lost revenue. But if we can stabilize energy production and operation of our existing infrastructure, service interruptions will likely decrease.
The government has indicated it is performing an energy assessment to determine the right mix of energy production methods. With over 40 alternative energy proposals, the government is right to turn to expert advice. But with OPEC not likely to lower the cost of oil any time soon, Bahamians would welcome some respite from high electricity prices sooner than later.
In the meantime, businesses and homeowners welcome winter's cooler temperatures and a break from running high-cost air conditioners.

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