By CHESTER ROBARDS
Tribune Business Reporter
Freeport, Grand Bahama- A MAJOR Grand Bahama industrial business yesterday said it had been forced to lay-off 26 contractors last month to combat escalating power costs, as it is faced with electricity bills amounting to $500,000 per month.
Polymers International faces electricity costs nearly five times' that of its nearest US competitor, its chief operating officer told Tribune Business yesterday, as the Grand Bahama Power Company (GBPC) eagerly explores ways to lower costs to its customers.
Greg Ebelhar said that when his company came to Grand Bahama in the mid-1990s, electricity costs were at a tolerable three times' more than its competitors. However, the power company's inefficiencies are now costing the manufacturer some business.
According to Mr Ebelhar, Polymers was forced to lay-off 26 contractors last month due to mounting electricity costs.
This follows Glass and Fenestration Services' (GFS) Tuesday announcement that it would be pulling out of Grand Bahama because of the high cost of power and poor service reliability of the Grand Bahama Power Company.
Chairman of GFS, Steve Howes, said he had seen critical manufacturing equipment "fried" by surges in the power supply on numerous occasions, to the point of putting his operation out of production for a time last year.
He was asked by the Grand Bahama Power Company to pay a $120,000 bill, but maintains that the company owes him at least $170,000 for equipment damaged by its intermittent power supply.
The island's bowling alley also announced recently that was closing, due in part to exorbitant electricity costs, that ate away at 40 per cent of income, never allowing the entertainment facility to be profitable.
President of the Grand Bahama Chamber of Commerce, K Peter Turnquest, said it was time for Grand Bahama Power's shareholders to consider the use of Liquefied Natural Gas (LNG), in order to subdue the pressures of utility costs on business and residential properties alike.
Indeed, Grand Bahama Power's new president and chief executive, Alan Kelley, agrees, telling this newspaper that the company was interested in bringing a natural gas solution to the island.
"We are looking at a number of alternatives to try to bring in some additional power generation resources than the ones we have now," said Mr Kelley.
He added that the company was hoping to have more efficient portable power generators within one year.
However, Mr Kelley said that at the moment, their power costs simply represent that of generation on a small island, with the added costs of fossil fuels.
The company has engaged in studying power production through wind energy, which could be finished its exploration stages by mid-summer.
Mr Turnquest said if Grand Bahama was to truly position itself as a haven for industry, as it has always been touted, the power costs need to be stemmed as soon as possible.
Mr Ebelhar said employees of manufacturers, like his company, are feeling the pinch more as their utility costs continue to increase, while their employers look for ways to cut costs.
"Residential users are employees and they are getting a pinch in their budgets," he said. "Employees want more money to make up for the higher costs of their living."
