A Partnership for National Unity (APNU) Member of Parliament (MP) Sydney Allicock on Monday petitioned the National Assembly for the Lethem Power Company Inc to rescind its recent decision to hike electricity tariffs.
In his request for the petition to be read for the first time in the National Assembly, Allicock said the increase comes at a time when the power company has been badly managing its resources. As he called for an investigation to be launched into the operations of the company, he contended there are cases of malpractices.
He told the House that the people of Lethem and by extension, Region Nine are not shying away from their responsibility; however, they believe that the payments of electricity tariffs should be done in a strategic manner.
Currently, an across the board structure is in place for all consumers in the region, but Allicock said this should not be the case, contending that there are great variations regarding the incomes of residents. According to the APNU MP, different levels of payments should be made to meet the pockets of the poor. The company, he said, should strike a balance.
Without any objections, the petition was read for the first time by Clerk of the National Assembly Sherlock Isaacs. According to the petition, the community of St Ignatius is required to pay electricity for the distribution of potable water to its residents.
According to the petition, since 1995, the Lethem Power Company has continuously increased the electricity tariff over the years with residents respectfully accepting the increases, despite their economic difficulties.
The last tariff structure was designed to give consumers the first 15kw free. However, consumption of an additional 30kw results in consumers paying Gy$45 per kWh while consumers who consume more are required to pay Gy$55 per kWh.
However, in the first week of January, residents received a letter from the power company indicating that they are now required to pay Gy$75 per kWh; effective January 1. This new tariff structure represents a 54.6 per cent increase. This increase comes although there has not been any dramatic increase in the cost of electricity.
No consultation
This move by the Lethem Power Company was considered disrespectful as residents were not consulted before the increase took effect. This imposition would put the residents of Lethem and neighbouring communities at a disadvantage. The petition, which was signed by more than 300 persons, called for the company to meet with residents to determine what is affordable and implement a system which reflects the various categories of consumers and their ability to pay.
In response to the petition, Prime Minister Hinds said taking into consideration the potential of Lethem to develop, the government of Guyana directed a grant of approximately Gy$700 million to install a Moco Moco Hydro in 1999.
“When we established the company, we made it clear that the operations would be governed by the cost, the cost would be set that the operations including maintenance.” However, the Moco Moco Hydro suffered a massive failure due to landslide in 2004.
“It is an unconscionable act,” the prime minister told the House, contending that the signatories of the petition might not have taken time to scrutinise the situation in its entirety.
“All through the years our position has been that we will advance electrification in the hinterland, we will cover capital costs of all the operations, including maintenance.”
Refuting claims that no consultation took place before the new tariffs were imposed; the prime minister stated that he visited Region Nine twice in 2009 to address residents on the increase and other issues. On both occasions, he said residents agreed that the increase was necessary and “It was accepted.”
