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BCCEC

News Report: Chamber - rising electricity costs having a devastating effect on businesses

Published by Youri Kemp, Nassau Guardian, September 5th, 2024


The escalating cost of electricity is having a “devastating effect” on the business community, according to the chief executive officer of the Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC).


Dr. Leo Rolle, in a statement to Guardian Business, said: “The BCCEC is deeply concerned over the increased cost of doing business and the devastating effect this has on the business community, with the escalating cost of energy among primary concerns.


“We note the minister’s [JoBeth Coleby-Davis, minister of energy and transport] comments relative to increased usage, equating to increased cost, and wonder whether the free energy audits that were mentioned during the initial rollout of the energy reforms have been offered to businesses and taken advantage of by those most impacted.


“While we acknowledge the minister’s comments, we continue our suggestion of education, public awareness and training campaigns, to ensure the business community is appraised of the nuances intricately woven into the fabric of the reforms.”


Coleby-Davis said in remarks in June on the government’s energy reform initiative: “All residential consumers with low and moderate electricity usage will benefit, as the base rate tariff for the first 0 to 200 kWh will be reduced to zero. The upper bands will stay the same, but even if you are a resident with a bill of around 600kWh, you will still benefit from the rate of your first 200kWh being reduced to zero. Note that everyone will still have to pay for the fuel charge for every unit they consume.


“The commercial base tariff will drop slightly from 15 cents to 14.5 cents, and the temporary supply 23 base tariff, which particularly affects the Family Islands, will drop from 16.38 cents to 15 cents. Again, they will both continue to also pay for their fuel charge.”


Rolle also said: “From the Chamber’s perspective, we have encouraged our members to seek alternative renewable energy sources where possible, as well as energy efficient appliances, lighting and equipment.


“We, too, are leading the charge by investing in solar lighting and high efficiency air conditioner units for our own premises. Noting the recent outages and fragility of equipment, we also encourage surge protectors and similar devices to mitigate against equipment losses during periods of instability.


“Additionally, through our Energy Reform Committee, we will highlight energy savings videos exclusively on our YouTube page to provide actionable measures for our members to reduce consumption and control wastage, thus benefitting from the forthcoming reductions mentioned by the minister, as we enter the cooler months.


“In August, we met with the Chinese ambassador for discussions, with one focal point being the energy sector and Chinese partnerships for solar panels, electric vehicles and energy efficient appliances that can ease the energy burden on the business community. In April, we plan to lead a delegation to India to meet with manufacturers of energy efficient equipment that will impact those primarily in the construction, textiles and supplies management industries.


“Finally, we continue to urge the government to take whatever steps are necessary to stabilize and reduce the cost of energy for the country, especially in islands like Eleuthera and New Providence, where economic activity is on the uptick and stable, cost-effective energy is needed to ensure continued growth. We look forward to being a part of the discussion of these and other much needed reforms to our energy sector nationwide.”






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