#BTEditorial – Make it much easier to choose renewables

Just as Barbados is being prepped for a 21 per cent increase in the fuel charge on our electricity bills, the world market price of the vital commodity,  has fallen below US$100 a barrel. However, the price is expected to shift upward again.

This is a poignant example of the fluidity of markets not only for crude oil and fossil fuel-based energy but for food staples such as grains, flour and oils. We know from experience that when businesses are forced to endure higher electricity and energy costs, it is the consumer who bears the brunt of such developments.

Consumers in Barbados are going through one of the toughest periods in the past ten years as incomes have been under threat from job insecurity, retrenchments, and underemployment. Business owners too, have also faced a great deal of trauma.

As the Small Business Association (SBA) has informed us, more than 100 small and micro enterprises on the island folded over the period of the pandemic. And with that, several jobs were decimated, and the families of these breadwinners left to struggle.

We also know that while the bottom line of essential operations such as food distribution and retail companies, as well as the telecoms sector may have expanded during the pandemic, most enterprises in the retail trade and creative industries, for example, were scrambling to survive.

Added to the mix has been the imposition of a temporary COVID pandemic contribution of one per cent for certain enterprises and those persons making $6, 250 monthly or more.

This tax, though worthy in its intent, will become another hit to the pockets of middle-class workers who are already stretched with the usual indebtedness of mortgage, car, and credit card commitments.

And so, we are not being hyperbolic when we suggest that the load being carried by the employed and worse-yet, the unemployed and retired, is heavy.

The warning from BL&P cited the war that has resulted from Russia’s invasion of Ukraine as an important factor in the escalation of the fuel clause adjustment component of our electricity bills.

“Russia is the world’s second largest oil producer, and the situation is therefore impacting global oil prices and the cost of fuel that Light & Power purchases from the Barbados National Oil Company and other fuel suppliers,” the company indicated to local consumers.

It added also that oil was “surging pass US$100 a barrel for the first time in seven years”.

This conflict between Russia and Ukraine, which seems to be gathering momentum and will likely envelope other nations eventually, unless someone can convince Vladimir Putin to put a stop to his madness. And we as small, open economies that are net importers, will be at greater risk than ever.

The advice coming from the experts in “conservation”. Though we may harp and target BL&P for what we believe is an ill-timed request for a rate increase coupled with a sharp rise in the fuel clause adjustment, the fact remains that there are some actions that can be taken by consumers to mitigate the increased costs.

In her 2022 Budget last month, Prime Minister Mottley outlined several measures meant to push Barbadians towards greater use of renewables. Though there was some initial excitement about the measures from those who reviewed the proposals, it is still early days yet to assess the response of consumers and those in the renewable energy business.

The initial outlay required for solar systems is still prohibitive. However, those who are savvy and surf the Internet are aware of small, low-priced solar devices that can deliver enough lumens to provide sufficient light around homes that can eliminate or significantly reduce the need of continuous exterior lighting. This will certainly impact monthly electricity bills.

Also, by now, most homeowners should have replaced their traditional yet  highly energy inefficient incandescent light. The switch to energy saving LED bulbs is a no-brainer. Though some people believe incandescent bulbs provide better coverage, they in fact, convert much less of the energy they consume. An unbelievable 90 per cent of the energy used by these bulbs is lost as heat.

This certainly is not how we want our hard-earned money to be wasted, when that income could be diverted to our monthly or weekly food bill.

Apart from the individual consumer, greater pressure should be exerted on BL&P to explain to consumers how or if they are benefiting from the millions of dollars invested in the massive photovoltaic farm in the north of the island.

Government too, should be pressured to deliver even more incentives for consumers and businesses to choose renewable energy. At the same time, the state ought to utilise all its levers to create disincentives to fossil fuel-based energy use and to do so quickly.