NASSAU, BAHAMAS — Bahamian manufacturers are advocating for a lower electricity rate compared to other consumers to spur industry development, noting that any increase would adversely impact their bottom line.
Jonathan Cartwright, president of the Bahamas Light Industries Development Council, (BLIDC) told Eyewitness News that Bahamas Power and Light’s (BPL) decision to increase its fuel charge would have major implications for local manufacturers.
“Manufacturers use a lot of power,” said Cartwright.
“Our big machines pull a lot of energy. Our association, the BLIDC for years has proposed that we should have different rates for different sectors – residential, commercial and industrial. We felt that given the lack of diversity in the economy, that if we want to encourage industry we should get a lower rate because of the value we are providing to the country. It’s cheaper to make items away in part because of the cost of electricity.”
BPL officials yesterday announced that electricity bills are set to increase next month. Customers using less than 800kWh will see an incremental increase of two cents p/kWh, and those using more power will see increases of 4.3 cents p/kWh that take effect on October 1.
“Any rate hike, especially for large manufacturers whose bills are hundreds of thousands of dollars a month would negatively impact their bottom line. We think that the industrial sector should have a lower rate just to encourage industry. We’re just lumped in with everyone else. I know some of the large producers have electricity bills which are well over $100,000 per month,” said Cartwright.
He noted that the cost of electricity along with labour, raw materials and duties are among the largest costs for manufacturers.
“The government can’t do anything with the cost of raw materials. cost. They can’t dictate what a supplier sells you something for. Electricity is a big factor and that is something government can assist with,” said Cartwright.
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