The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

BUSINESSES across New Providence and the Family Islands are suffering significant financial losses from persistent power outages, with some forced to close, turn away customers and discard spoiled inventory, the Bahamas Chamber of Commerce and Employers’ Confederation warned yesterday.

The BCCEC said restaurants, grocery stores, pharmacies, manufacturers, retailers and service providers have all endured varying levels of disruption, with many unable to operate safely or efficiently without reliable electricity.

The chamber said members have reported closing during business hours, losing sales because electronic payment systems could not operate and absorbing the cost of goods spoiled during prolonged interruptions to refrigeration and cold storage.

“These are sales that, in many cases, cannot be recovered,” the BCCEC said.

The warning followed hours-long outages that disrupted homes and businesses across Abaco and New Providence over the weekend.

Residents in parts of Abaco said the latest round of power disruptions began as early as Wednesday and included an outage lasting about 18 hours.

The BCCEC said prolonged outages frequently prevent businesses from processing transactions in an economy where consumers increasingly rely on debit cards, credit cards and other electronic payment methods.

It warned that the damage extends beyond individual companies, citing lost productivity, interrupted operations, damaged equipment, increased operating costs and declining consumer confidence.

“The cumulative effect of these outages extends well beyond individual businesses,” the chamber said. “Lost productivity, interrupted operations, damaged equipment, increased operating costs and declining consumer confidence place additional strain on an economy already facing significant challenges.”

Micro, small and medium-sized enterprises face the greatest risk because they often lack the financial resources to withstand repeated disruptions, the BCCEC said, adding: “MSMEs, which comprise most businesses in The Bahamas, are particularly vulnerable because they often lack the resources to absorb repeated disruptions.”

The chamber said a stable electricity supply is essential to economic growth, tourism, investment, employment and the delivery of essential services.

“Businesses cannot compete, expand or serve their customers effectively when they cannot depend on a stable power supply,” it said.

The BCCEC acknowledged the efforts of utility workers restoring service under difficult conditions and the government’s push for energy reforms, but said the frequency and duration of the outages demand urgent operational improvements and stronger contingency measures.

“While the BCCEC recognizes the efforts of utility personnel working to restore service under difficult conditions and the government’s thrust towards robust energy reforms, we contend that the frequency and duration of these outages underscores the urgent need for both immediate operational improvements and more adequate contingencies for our electricity infrastructure.”

The chamber called on the relevant authorities and the electricity provider to clearly and consistently explain the causes of the outages, the measures being taken to resolve them and realistic timelines for improving reliability.

It said timely information is essential for businesses deciding whether to open, adjusting their operations, communicating with customers and attempting to limit financial losses.

The BCCEC said it would continue documenting the economic impact of the outages through consultations with its members while advocating for practical, long-term solutions.

It said the business community remains committed to working with stakeholders to ensure The Bahamas has an electricity system capable of supporting a modern and competitive economy.

Abaco Chamber of Commerce president Chantelle Sands described Thursday as “one of the worst days”, saying the prolonged loss of electricity disrupted normal business operations across the island.

Ms Sands said she had heard of one case in which Bahamas Power and Light reportedly damaged the transfer switch on a business’s generator, preventing the company from using its backup supply during an outage.

She said businesses are increasingly purchasing generators to maintain operations, but the fuel and maintenance expenses are placing further pressure on already narrow profit margins.

“Many businesses are now investing in generators, which is a positive step for maintaining continuity of operations during outages,” Ms Sands said. “However, generators come with significant operating costs, including fuel and maintenance. Those added expenses reduce already tight profit margins.”