With the Supermarket Association of T&T (SATT) continuing to express concern about the impact of proposed higher electricity rates on its members across the country, the Business Guardian has found that one large supermarket in west Trinidad faces a 58.24 per cent increase in their bill.
According to the supermarket’s August bill from the Trinidad and Tobago Electricity Commission (T&TEC), its consumption of electricity was 77,660 kilowatt hours (kWh) and the demand charge was 155.6.
The supermarket’s bill was sent to the Regulated Industries Commission (RIC) and analysed by officials there. The RIC said that even though the supermarket was a commercial enterprise, its usage of electricity, at 77,660 kWh, placed it in the category of an industrial customer.
The supermarket’s August bill of $26,138.60, comprised a consumption charge of $15,454.34, a demand charge of $7,780 and Value-Added Tax at 12.5 per cent equalling $2,904.293.
Based on the RIC’s analysis, if the proposed electricity rate hike is approved by the Cabinet, the supermarket in western Trinidad would pay a monthly bill of $41,362.28, if it consumed the same amount of electricity. That would be an increase of $15,223.65 a month or 58.24 per cent.
In a statement to the Business Guardian, SATT said it expects that there would be a sharp rise in supermarkets’ electricity bill, which would impact operating costs and eventually prices.
According to the information provided by SATT, a typical supermarket retail establishment presently has a bi-monthly billing cycle of TT$30,000.
A supermarket owner, who asked not to be named, told the Business Guardian that on average, smaller sized supermarkets spend five per cent of their revenues on their electricity bill.
SATT also said that given that the arrangements are still being worked out for commercial customers, it is difficult to estimate where the monthly billing will fall, but it will probably be in the range of TT$20,000 to TT$25,000 per month.
“Some major points to take into consideration: if the new rate is accepted, then price pressures will be experienced; there is also the potential for a higher incidence of pilferage as this is already high and the population is experiencing price pressures from the cost of living,” SATT said in its statement.
SATT even foresees a negative social implications.
“It may also affect imports of cold foods on a whole. As it may be too expensive to sell and will also be subjected to theft due to its increased price. This would further slow down sales of these specific items until we are unable to bring them in at a reasonable cost, which will slow down imports.
“Places that use heavy electricity—large manufacturing operations, meat facilities, ice cream, vegetable storages—all will be affected. Larger establishments that require air conditioning for operations due to high heat and also electricity for large cold storages, even shelf cold storage will definitely be subjected to increases.”
SATT also spoke about how supermarkets can be expected to adjust to a higher electricity bill as they seek to conserve electricity.
“Groceries that use air conditioning—can be adjusted by using less air conditioning but the impact will be an unpleasant heatbox shopping experiences. Also places like malls that use electricity to keep places cool will also be subjected to increases. It can come from mall rent increases to cater for the differences in high costs of electricity operations. In addition, even though LED lighting is lower voltage there is more of it being used, more security cameras and equipment installed and in use, higher temperatures means the demand on air conditioning.”
