By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BAHAMIAN MANUFACTURING companies yesterday said they should be charged a lower electricity rate than other consumers, one firm telling Tribune Business he was paying $60,000-$70,000 monthly in energy costs.

Glen Rodgers, president of Bahamas Food Packaging (Bapak), told Tribune Business: “My electricity bill every month is between $60,000 and $70,000. Countries that have manufacturing and commercial activity have industrial rates.

“Take Florida, for instance. They have industrial, commercial and residential rates. We only have one. How do they expect you to grow and hire more people and expand your business if you aren’t making the money?”

Mr Rodgers added:”That’s absolutely something the Government should look into. We have been fighting for this for 30-plus years. This is why manufacturing isn’t  going anywhere.”

“Electricity has always been an issue for manufacturers, though not all of them. We are a more higher end of manufacturing in the sense that we use  a lot of equipment that obviously uses a lot of fuel-based power,” said Blanco president Richard Pinder.

“Needless to say, with fuel costs escalating over the past several years it has has been quite a challenge for us to maintain existing margins. This has been an issue we would like government to look at, particularly on the fuel surcharge, to try and reduce those costs so that we can basically  remain competitive and pass those savings on to costumers.”

According to Mr Pinder, having an industrial rate for manufacturers was the most equitable way of addressing the energy cost issue affecting the sector.

“That would be the most equitable way of doing it if it were to be done at all,” said Mr Pinder, who noted that the system would have to be monitored to ensure there were no abuses and that savings being realised were passed on to customers.  

Andrew Rodgers, head of Bahamas Aluminum Manufacturing Company, told Tribune Business that while his business was not as burdened by electricity costs like others in the manufacturing industry, he agreed that the sector should be charged based on a different rate.

“In a country like ours you should have three rates. You should have residential, commercial  and manufacturing. You shouldn’t have one rate; that is nonsense. Everywhere else there are three rates,” he said.