Rising power costs hit island supermarkets, raising concerns over consumer spending
By THE STAR STAFF
Puerto Rico supermarkets have seen electricity bills surge by as much as 39% between September and October, adding pressure to an industry already grappling with high operating costs and raising concerns that consumers could ultimately bear the burden through higher food prices.
The warning came from Manuel Reyes Alfonso, executive vice president of the Food Marketing, Industry and Distribution Association (MIDA by its acronym in Spanish), who said the sharp increase was largely driven by fuel adjustment charges that have pushed electricity costs higher since the summer.
“The average supermarket is paying between $5,000 and $6,000 more per month,” Reyes Alfonso said during a radio interview on “Normando en la Mañana.” He noted that the October bill reflected an increase of nearly 39% compared with the previous month.
Supermarkets rank among the island’s most energy-intensive businesses because of their heavy reliance on refrigeration systems to preserve perishable goods. Reyes Alfonso said the increase in operating costs eventually makes its way through the supply chain, placing upward pressure on food prices.
“It’s a strong blow,” he said, adding that the issue is expected to be discussed during a virtual meeting with industry members.
While concerns have recently emerged about cyberattacks targeting refrigeration systems, Reyes Alfonso said the risk remains limited within Puerto Rico’s supermarket industry. He noted that fewer than 10% of supermarkets operate refrigeration equipment through online systems, with remote management generally confined to larger chains.
“The real concern is not the availability of food,” Reyes Alfonso said. “Food security is not only about having food on the island, but about people having the ability to purchase it.”
The comments come as Puerto Rican households continue to face higher utility costs and inflationary pressures that have reduced purchasing power. Reyes Alfonso said supermarkets are already observing changes in consumer behavior, including greater reliance on weekly promotions and the elimination of nonessential items from shopping lists.
He said consumers who closely follow weekly sales circulars can save roughly 20% on their grocery purchases. He also noted that egg prices have fallen by more than 20% compared with a year earlier, providing some relief to shoppers.
Despite rising costs, Reyes Alfonso said he has no specific information suggesting supermarket chains face an imminent risk of bankruptcy. However, he urged policymakers to adopt immediate measures to reduce energy-related costs, including lowering or eliminating Puerto Rico’s fuel excise tax, commonly known as “la crudita,” as well as the inventory tax applied to fuel.
The MIDA executive criticized what he described as lengthy public hearings on the issue without concrete action.
“It doesn’t take five hearings to address something that is obvious,” Reyes Alfonso said, referring to multiple Senate hearings that have examined rising energy costs but have yet to produce a policy decision.
For Puerto Rico’s food sector, the challenge extends beyond balancing operating expenses. Industry leaders argue that continued increases in electricity costs could further strain already tight household budgets, making affordability, rather than supply, the most pressing food-security issue facing the island.
