Cost of Living Alert: BL&P to Submit Application for Rate Increase
Amid the din of post-Christmas activity the FTC posted a notice requesting technical assistance to support a rate review in the second quarter 2019. A worst case scenario for Barbadian consumers to consider is that the BL&P will be granted the increase.
One does not require deep dive analysis to gauge the state of mind of Barbadian consumers, we are a citizenry suffering from economic fatigue. The blogmaster is of the view the fatigue state of mind of the electorate largely resulted in the 30 zip defeat of the Democratic Labour Party (DLP) in the last general election.
Electricity is a significant input cost in the production process. To our credit we have been developing alternative energy sources, however, it is still at a nascent stage. An increase in electricity rates will have a significant impact on the Barbados Water Authority (BWA) cost to pump and distribute water. The upside is that it may speed up the implementation of alternative power sources by that utility company.
There can be no argument that an increase in the electricity rate will drive the cost of living upwards. The business sector continues to be affected by the removal of the road tax and imposition of the fuel tax.
It makes no sense for Barbados to be boasting about generating energy from alternative sources and at the same time consumers are asked to suffer an increase in electricity rates.