The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Family Island Chamber of Commerce heads have branded Bahamas Power & Light’s (BPL) fuel charge hikes “a slap in the face” as they now have to pay more for unreliable electricity supplies that frequently suffer outages. 

Daphne Degregory-Miaoulis, Abaco’s Chamber of Commerce president, told Tribune Business that increases of up to 163 percent compared to the present 10.5 cents per kilowatt (kWh) rate “add insult to injury” when some 30 percent of the island’s homeowners cannot connect to BPL because their post-Dorian properties are not deemed sufficiently worthy to have power restored.

“The thing about it is that it’s like a slap in the face. It’s adding insult to injury,” she blasted. “Thirty percent of our property owners cannot afford to finish their homes to get power much less bear an increase. The businesses who are having to pay the higher fee, they themselves are just trying to recover. I don’t know what to say. It just shows the Government is really in dire straits.

“BPL have been struggling here on the island because they’re unable to get the equipment they need as they can’t find it. There’s a waiting list, sometimes of up to 18 months, for equipment they need to rebuild their power stations that were damaged. That’s part of the reason why they are not able to provide regular power.

“We’re having many power outages because they’re trying to manage the power stations with inadequate equipment. We’re paying for power we don’t always have available to enjoy and, in many cases, we can’t afford to get reconnected. It’s just another blow to Abaco. It’s a major setback.”

Mrs Degregory-Miaoulis said she was unable to estimate how many businesses may be forced to close, or terminate staff, as a result of the BPL fuel charge increase although the Government is hoping it is sufficiently short-term - phased in over a period of 15 months - to avoid major long-lasting damage to the Bahamian economy.

“The only upside to this thing, and I always like to look at the glass half full, but the only upside is that it teaches people to be more energy conscious and look at ways to cut back on their use of energy,” she added. “Hopefully the Government will set the example by, first of all, implementing solar and renewables in its buildings. They’ve got a big solar microgrid next to the airport, but last I heard it was not operational. I don’t know what they’re waiting for.”

Her concerns were echoed by Thomas Sands, the Eleuthera Chamber of Commerce president, who said the impact of BPL’s fuel charge hikes will be felt more keenly on the Family Islands than in Nassau given that everything costs more outside the capital due to extra shipping/freight costs.

“It starts with us needing them to keep the power on all the time,” he told Tribune Business. “We’re suffering power outages every single day. For the average business that doesn’t have a generator, it’s crazy for them. Just the consistency of power is the first concern that most businesses are going to have, and then the additional cost in addition to not having consistency of power is like a double slap in the face.

“I spoke to someone from Atlanta who has been coming here for 17 years and they said the power has not stayed on once. We’re in the position where it’s off every day. How do you explain that? Together we have to find a different approach. It appears we always go down the same road with the same formula, and it’s obvious it’s not working. It’s obvious it’s outdated.

“I’m sure nobody is going to be pleased. It’s not going to help. People are already faced with not getting what they have paid for; the consistency of service. We’ve got to pay more for it and is it going to be more consistent? I do not know. It’s not helpful in any way for any business.”

Mr Sands said much depends “on how drastic that increased cost is going to be”, especially for businesses, pointing out that companies had frequently lost food and other commodities to power outages pre-COVID. “It’s like an accumulation of further challenges. Yes, it will have an even greater negative impact on any and all businesses,” he added. “It’s just not a helpful thing.

“The reality is everybody is faced with increasing costs across the board in some areas. It doesn’t help the bottom line and, at the end of the day, there will be some who go out of business as a result of it. What can we do to change it? I haven’t really looked at the numbers at this point.

“I get so caught up in trying to keep the doors open and the people paid; the staff paid. I have not sat down and looked at what the impact will be. The cost of energy, the cost of everything is more in the Family Islands. I think everything is further impacted in these islands, and so I think there really should be an effort to encourage greater efficiency throughout businesses.”

Mr Sands renewed his call for further tax cuts and other incentives to increase the penetration of renewable energy sources in the Bahamian private sector. The Government enacted a series of tariff eliminations and reductions in the 2022-2023 Budget to stimulate exactly that.

Analysis seen by Tribune Business shows that, at the peak of the BPL fuel tariff increase between May 1 and August 31, 2023, Bahamian families consuming 800 kilowatt hours (kWh) or less will suffer up to a 76 percent hike compared to the current 10.5 cents per kWh charge. That three-month period also represents peak summer, coinciding with maximum demand and the greatest energy consumption.

As for businesses and households that use over 800 kWh, fuel charges are set to increase by 138 percent, 163 percent and 138 percent - more than doubling compared to the present 10.5 kWh rate - during the periods of March 1 to May 31, 2023; June 1 to August 31, 2023, and September 1 to November 30, 2023.