The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE cost of electricity for some businesses has become “a critical situation” according to Bahamas Chamber of Commerce & Employer’s Confederation (BCCEC) chief executive Edison Sumner who told The Tribune that for some companies, electricity costs were more than 20 per cent of their monthly return.

Speaking with Tribune Business yesterday on the heels of a major announcement by Prime Minister Perry Christie on the Government’s plans to reform the energy sector, Mr Sumner said that the Chamber was “very concerned” about the country’s energy sector.

He said: “The cost of electricity is a major concern  for businesses throughout the country. We have an energy policy committee at the chamber level who will be assessing these kinds of things. We’re very concerned about that sector of the economy that seems to always be a burden not only on the private individual but the business person as well. We will be taking his comments into consideration, have a discussion on them and see how they will affect the cost of doing business in the Bahamas as it relates to the Government’s energy policy. We also look forward to receiving a copy of the draft energy policies the Government has so we can assess them as well and provide some input from the persons on our energy committee in the chamber.”

Mr Sumner said that for some businesses, the cost of energy has become a “critical situation” with some businesses being forced to choose between paying salaries or their electricity bills for a particular month.

“In some cases we have seen some business persons whose energy cost is as high as 20 per cent. When you get to a point where you have to make a decision where you have to pay your electricity bill for that month or pay salaries then you know you have problem. In some cases we find that some businesses places, depending on the type of business they run, have energy costs that are exceeding 20 per cent of their return for that particular month. It has become a critical situation in some cases,” said Mr Sumner.

Mr Sumner said that the high cost of energy is also considered as a major deterrent for some foreign direct investments or investors looking to do business in the country. Mr Sumner said the chamber was working to increase skills and productivity in the workforce and was also looking to make its input on energy sector reforms. Mr Sumner said that the BCCEC was planning an energy conference to be held possibly in October of this year.