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Alternative energy a viable option

10/28/2009

IN the last few months, utilities, the value we place on them and their cost have been under public discussion. First, there was the increase in water rates. It is yet to be seen if it has had any effect on local consumption patterns or whether operations at the Barbados Water Authority have improved, but that perhaps requires more time before a fair assessment can be given. More recently, however, the cost of another utility has come under scrutiny.

In recent weeks, the privately-owned Barbados Light & Power Company has been undergoing a hearing with the Fair Trading Commission in which it has made an appeal to increase its rates. Now unlike water, electricity is not a basic necessity. Of course, one could say that in this technologically-advanced world it is indeed a basic necessity, but for argument’s sake, it could also be reasoned (tongue on cheek, of course) that we could return to the days of lamps and candles without jeopardising our survival, as would be the case with water.

The electricity company has put forward its case, the intervenors have made theirs and we now await the FTC’s decision. In the interim, there are a few issues that could be examined, if they haven’t already been thrashed out.

Like any other business house, the electricity company is seeking to increase revenue. However, what differentiates this company from others is that it is a monopoly. The lack of competition means that while the business can seek to maximise revenue, as is considered good business practice in any capitalist system, the consumer does not enjoy the luxury of choosing another electricity supplier.

Of course, in a country with such a small land mass, establishing rival utility companies is a complicated task, given that the island can only support so much infrastructure. The dependence on existing infrastructure may be a deterrent for many potential
competitors, who usually have to piggy-back on the existing structures – and often at the discretion of the long-standing entity.

How then can the consumer regain some measure of power or choice? One option may be to start producing their own energy. The two main alternative energy sources that are viable locally are wind and solar energy. However, as with any change in technology, the start up costs can be quite expensive at the outset. A visit to the Energy Ministry’s Solar House in Queen’s Park would reveal that it is entirely possible to run a household on solar power, but the costs for an individual to either retrofit their home or build a new home with these structures in mind are quite prohibitive.

In this regard, not only government has a role to play, but also the private sector. For example, in the same way that banks offer special mortgages and other attractive loan packages for consumer items such as clothes and travel, they may want to consider offering special loans to persons who want to retrofit or build their homes with alternative energy in mind.

With more persons generating their own electricity, consumers would benefit as the laws of supply and demand kick in, and perhaps even the electricity company would find themselves in a better position, since they would have a greater impetus to streamline and tighten up their operations in the face of competition.

Perhaps what is needed most of all is a change in attitude towards alternative energies. It’s time that this is no longer simply a catchphrase and that persons seriously consider it as a viable option for their homes.

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