Businesses across the Island are taking stock of the likely impact from a hike in electricity rates proposed by Belco on Wednesday.

Commercial users face an average increase of 15 per cent on their monthly electricity bill, with the largest commercial users seeing a rise of between 8 per cent and more than 20 per cent, according to Belco.

The utility company also wants to increase facility charges by one fifth. The proposed changes to the base rate have been submitted to the Energy Commission, which has the final say on whether or not to permit the new rates.

Supermarket chain MarketPlace could see its yearly electricity costs rocket by more than half-a-million dollars if the price hike is given the green light.

Belco has stated it is battling rising expenses, including plant maintenance, more expensive healthcare and pension costs, and lower revenue as a result of the Island’s falling population and reduced economic activity.

However, those are problems that all businesses in Bermuda are grappling with, said MarketPlace president Gary Shuman.

He pointed out that profit margins for supermarkets in Bermuda have remained stagnant since the early 1990s.

With eight stores across the Island, MarketPlace is a significant user of electricity. The prospect of a large hike in Belco rates is concerning for Mr Shuman.

“We are talking about more than half-a-million dollars from what is proposed,” he said, adding that MarketPlace had worked hard during the recession to keep its costs low but now faced the prospect of a possible $500,000 hit.

He added: “As a large employer in Bermuda we are close to our work associates and we know the impact higher costs have had on their budgeting and planning.”

Mr Shuman said MarketPlace was “100 per cent” against the proposed rate rise. “It would hit us,” he said.

Other businesses on the Island with high electricity usage are thought to have similar concerns. The Royal Gazette has attempted to get comments from the Chamber of Commerce, the Bermuda Hotel Association and a number of telecommunication companies, and at press time was awaiting responses.