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Jobs and prices fear over electric costs

Tue, Jul 18th 2023, 09:01 AM
Tribune Stories

GROCERS may raise food prices and gas retailers are promising to lay off staff as some businesses see a 70 per cent increase in electricity costs this summer.

Arnette Ingraham, Bahamas Power and Light’s communications manager, attributed the soaring electricity costs to higher power consumption and the effects of increased fuel charges.
#BPL announced last year that customers using less than 800kWh would see an increase of two cents p/kWh. Those using more power would see a rise of 4.3 cents p/kWh in four increments, peaking in September 2023.
#Alarmed residents have been complaining about the costs on social media.
#“The increase is a significant one looking at the bills from time past,” said Philip Beneby, president of the Retail Grocers Association. “This is the most significant it has been in any one period.”
#Mr Beneby said grocers are reviewing their business model “to see what needs to be changed in order to absorb these increased costs”.
#He said businesses are trying to avoid passing the costs on to consumers.
#“It won’t be very long because you can only carry those costs for so long before you have to pass them on in some shape, way or form because when it’s time for government fees to be paid, you must have the government fees to pay them,” he added. “You must have BPL’s fees to pay them. Otherwise, you know what happens.”
#Raymond Jones, president of the Bahamas Petroleum Retailers Association (BPRA), called the higher costs a disaster.
#He said retailers have seen a 75 per cent increase in electricity costs.
#“If we were another retailer with the freedom to adjust our margins, it wouldn’t have been an issue,” he said, noting the Davis administration refuses to adjust their margins. “We’d adjust the margin to cover the cost and maintain a reasonable profit.”
#“There’ll be lots of layoffs,” he claimed. “There will be a reduction in hours and operations. All of that’s coming in the very near future.”
#Meanwhile, Fusion expects a $500k jump in electricity costs by the end of the fiscal year.
#“The overall bill moved up around 70 per cent over the past few months and I think we may be expecting about a half a million dollars increase in the electricity bill at the end of the year,” said Chief Legal Officer Tecoyo Bridgewater.
#He said Fusion wouldn’t burden patrons but is examining cost-cutting measures.
#“We’re looking for deals all around as it relates to the costs of the goods we import,” he said. “We do have an agreement that allows us to get certain reductions on certain items that are brought in. Now we can look for additional concessions. If they’re out there, we hope to get them, but we’re doing things like energy savings. We’re trying to look into some renewable energies.”
#Ms Ingraham, BPL’s communications manager, said electricity costs are expected to be lower next year.

Arnette Ingraham, Bahamas Power and Light’s communications manager, attributed the soaring electricity costs to higher power consumption and the effects of increased fuel charges.

BPL announced last year that customers using less than 800kWh would see an increase of two cents p/kWh. Those using more power would see a rise of 4.3 cents p/kWh in four increments, peaking in September 2023.

Alarmed residents have been complaining about the costs on social media.

“The increase is a significant one looking at the bills from time past,” said Philip Beneby, president of the Retail Grocers Association. “This is the most significant it has been in any one period.”

Mr Beneby said grocers are reviewing their business model “to see what needs to be changed in order to absorb these increased costs”.

He said businesses are trying to avoid passing the costs on to consumers.

“It won’t be very long because you can only carry those costs for so long before you have to pass them on in some shape, way or form because when it’s time for government fees to be paid, you must have the government fees to pay them,” he added. “You must have BPL’s fees to pay them. Otherwise, you know what happens.”

Raymond Jones, president of the Bahamas Petroleum Retailers Association (BPRA), called the higher costs a disaster.

He said retailers have seen a 75 per cent increase in electricity costs.

“If we were another retailer with the freedom to adjust our margins, it wouldn’t have been an issue,” he said, noting the Davis administration refuses to adjust their margins. “We’d adjust the margin to cover the cost and maintain a reasonable profit.”

“There’ll be lots of layoffs,” he claimed. “There will be a reduction in hours and operations. All of that’s coming in the very near future.”

Meanwhile, Fusion expects a $500k jump in electricity costs by the end of the fiscal year.

“The overall bill moved up around 70 per cent over the past few months and I think we may be expecting about a half a million dollars increase in the electricity bill at the end of the year,” said Chief Legal Officer Tecoyo Bridgewater.

He said Fusion wouldn’t burden patrons but is examining cost-cutting measures.

“We’re looking for deals all around as it relates to the costs of the goods we import,” he said. “We do have an agreement that allows us to get certain reductions on certain items that are brought in. Now we can look for additional concessions. If they’re out there, we hope to get them, but we’re doing things like energy savings. We’re trying to look into some renewable energies.”

Ms Ingraham, BPL’s communications manager, said electricity costs are expected to be lower next year.

 

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