The willingness of retailers to extend the social compact arrangement with the government may hinge on the outcome of the Barbados Light and Power (BL&P) rate hearing, says a consumer advocacy group.Saying that the reluctance of this island’s retail sector to renegotiate the compact possibly stemmed from the cloud of uncertainty surrounding future electricity costs, Executive Director of the Barbados Consumer Empowerment Network (BCEN) Maureen Holder noted any rate increase will have wide-reaching implications.Speaking on the impact high energy costs have had on production in Barbados, the consumer advocate suggested that consumers could expect higher mark-ups on goods and services.“If BL&P gets the rate increase, it would be unrealistic to expect the retail sector to agree to terms and conditions that prevent them from making certain pricing adjustments on their goods and services. In other words, it is highly unlikely that the retail sector would agree to a compact that inhibits them from making upward pricing adjustments which reflect the increase in the cost of energy,” Holder said.The social compact between the Government and the private sector capped prices on 45 items between the end of July last year and January 31 this year.
