Many businesses are worried about the sustainability of their operations if costs continue to rise without corresponding increases in revenue, the Bermuda Chamber of Commerce has warned.

Recently, the chamber said members had reported seeing health insurance increases of more than 30 per cent.

Then the Regulatory Authority approved an 8 per cent increase in Belco bills, although the Government later acted to reduce the burden by cutting duty on the fuel used to generate electricity by 60 per cent, from 20 cents a litre to eight cents.

Speaking before the Government intervened, chamber president Marico Thomas said: “The increases in Belco rates and health insurance premiums significantly impact small businesses by raising their operational costs.

“These businesses often operate with thin margins, so any rise in fixed expenses can strain their finances.

“Increased energy and health insurance costs can lead to higher prices for goods and services as businesses attempt to maintain profitability, potentially reducing their competitiveness and impacting their bottom line.”

According to Mr Thomas, consumers are likely to see higher prices for goods and services as businesses pass on some of the increased costs.

“Additionally, higher utility bills can reduce disposable income, leading to decreased consumer spending,” he said.

“This, in turn, can affect the overall economic activity as consumers adjust their spending habits to accommodate higher living expenses.”

Questioned about what the chamber was hearing from businesses in the wake of the rises, he said: "Businesses generally continue to express concerns about the increased operational costs and the challenges they face in maintaining profitability.

“Many are worried about the sustainability of their operations if costs continue to rise without corresponding increases in revenue.”

Asked if the chamber would like to see more urgency around introducing alternative forms of energy, Mr Thomas said that looking at international trends, “the costs related to providing power, and therefore the price we pay for electricity, is likely to continue to rise”.

“Alternative forms of energy are important and necessary. However, they require a further understanding of impacts, both their benefits and trade-offs.

“To avoid sudden price shocks, the chamber suggests becoming more aware about energy consumption and cost-saving measures to better manage energy use more effectively, and to adopt energy-efficient practices and technologies.”

Mr Thomas added: “The Bermuda Chamber of Commerce is committed to supporting its members through these challenging times.

“We encourage businesses to actively engage with the chamber to share their concerns and collaborate on finding solutions.

“Additionally, we urge the Government and regulatory bodies to consider the broader economic impact of rising operational costs and to work collaboratively with the business community to create a stable and supportive environment for economic growth and sustainability.

“The chamber will continue to advocate for policies and initiatives that promote a balanced approach to managing costs, supporting innovation and ensuring long-term economic resilience for Bermuda.”