The Tribune

By LETRE SWEETING

lsweeting@tribunemedia.net

FUSION Superplex is bracing for an increase of more than $400,000 in electricity costs due to Bahamas Power and Light’s bill hike, with its chief executive officer telling this newspaper the triple blow of higher electricity prices, increased food costs and an expected rise in employment wages has been known to “close down businesses”.

Carlos Foulkes said the next year will be difficult for the business.

 The CEO anticipates an increase in the facility’s power bill of about $466,000 in 2023, assuming the business’ consumption patterns from this year remain the same.

 “This increase in fuel surcharge will represent an increase of 62.8 percent of our annual bill. This year we paid $742,000 in electricity costs. With this new increase, we anticipate that our bill will jump to $1.2 million,” he said.

 After multiple instances of disruptions of power at the cinema from BPL, Mr Foulkes said despite BPL’s great customer service, the generation of power has been continuously lacking.

 “The next coming year will be difficult because we are increasing the power consumption rates, we are increasing the costs of inventory and food supplies and then we anticipate a cost for employment. Those three factors have been known to close down businesses. So this is a very significant increase in power and it can be detrimental to the small business community,” Mr Foulkes said.

 He was likely referring to the Davis administration’s plans to increase the minimum wage.

 In September, Tribune Business reported that Fusion Superplex reduced its workforce by 25 percent compared to pre-COVID levels as part of a $3m cost savings package “critical” to its “survival and keeping on the lights”.

 And last year, Fusion Superplex was forced to place between 350 and 400 staff on furlough due to COVID-19 pandemic restrictions.

 The entertainment facility is not the only business anxious about the power price increases.

 Bronson Beneby, owner of Courtesy Food Store, said with the high rate of operation costs in The Bahamas, especially for small businesses, an increase for any utility bill is a heavy burden.

 “Any increase is a negative effect, in terms of operating costs,” he said.

 “Of course it (electricity) is a necessity. I know most businesses, they’re looking for a decrease. BPL has been one of the major tolls on any business and they’ve been the cause of a lot of businesses going out of business,” said Mr Beneby.

 Khandise Smith-Bain, owner of Grace and Glory Company, a local accessory store said BPL’s monthly increase will mean her small business is “holding onto a raft in rough water in an effort to stay afloat”.

 “As a small business owner it’s already difficult to maintain a profitable business in this current economic environment and this just compounds the issue even more. The cost of importing materials can be incredibly taxing on my bottom line and to add an increase in operating expenses adds further strain on us.

 “We’ve already had to endure the setbacks of COVID and the increase in the basic cost of living. It’s like holding onto a raft in rough water in an effort to stay afloat,” Mrs Smith-Bain said.

 Prime Minister Philip Davis announced the BPL rate increase on Tuesday.

 “For a large majority of BPL customers, who consume less than 800 kWh (kilowatt hours), the fuel charge is increasing by 2 cents per kWh, which will result in an increase this quarter of less than $20 per month,” he explained. “If your current monthly bill is $182 or less, you fall in this category.

 “For those who consume more than 800 kWh, the increase will be 4.3 cents per kWh. I want to note here that we will raise the VAT ceiling from $300 to $400, so going forward, no VAT will be due on any electricity bills under $400, which will take some of the sting out of the 4.3 cent increase for a great many BPL consumers subject to the larger increase.”