GPL resists PUC advice on customers' service termination


Guyana Chronicle
March 9, 2001


THE Public Utilities Commission (PUC), the statutory watchdog body empowered to regulate electricity service to consumers, has suggested to Guyana Power and Light Inc (GPL) that it defers contemplated action to remove meters for non-payment of bills.

But the monopoly utility is resisting the edict and, in sharply worded correspondence, has indicated its intention to go ahead in accordance with a `Customer Advisory' published in the daily newspapers of February 28.

Triggering the swirling controversy, GPL Commercial Manager, Mr Tom Mulcahy, had given users an ultimatum that, if bills are outstanding two months after disconnection for non-payment of account, the meter will be removed, together with the service cable to the pole top, from March 12.

"This procedure is being applied to help keep bills lower for the majority of customers who promptly pay their electricity bills, by reducing the possibility of illegal reconnection and theft of electricity," the GPL official said.

He further advised that customers can avoid having the meter and service cable removed by visiting the nearest (GPL) commercial office to make arrangements for reconnection on payment of 50 per cent of the outstanding amount, the balance to be paid by installments over four months.

Among other things, Mulcahy said, those who do not avail themselves of that system and wish to have electricity supply reconnected, at a later date, will have to make new applications for supply and pay all outstanding charges.

The PUC wrote to the supplier about the issue on March 2 and 5, drawing attention to consumers' complaints of irregular billings, estimated and questionable amounts and claims of miscellaneous charges.

"To date, we have received no satisfactory explanation for these miscellaneous charges, despite our requests.

"It would be inappropriate for you to seek to terminate the services of consumers on the ground of non-payment, when the amount you claim to be due and payable is uncertain. This, of course, in addition to the fact that neither the licence nor the legislation seems to give you the authority so to do," PUC Deputy Secretary/Law Officer, Mr Allan Wilson told GPL.

He also stated that:"If the customer neglects or refuses to pay the charges for services due to the company, within 21 days of the date of the bill for such service was issued, including bills relating to consumption of electricity provided, Clause 11.4 of the Standard Terms and Conditions for Electricity Services provides for the removal of facilities and it states that, upon termination of service, the company shall be entitled to remove its facilities located upon the property of the customer and enter upon the customer's property for that purpose.

Wilson said the question which arises is whether termination of service applies to disconnection of service for non-payment of bill.

"It appears that the intent of the licence was that the service of consumers should not be terminated - rather it should be disconnected for non-payment," he added, pointing out that there seems not to be provision for termination, except upon the customer's request.

"Both the licence and the Standard Terms and Conditions of Electric Services seem to suggest that the services cannot be terminated," Wilson informed GPL.

He said Part K of the Schedule to the Licence and Clause 7.6 of the Standard Terms and Conditions for Electric Services gives ample protection to the company for its adequate recovery of outstanding bills.

Chairman of the PUC, Mr Prem Persaud, also alerted Prime Minister Sam Hinds, who has responsibility for the sector, to the resistance being encountered.

"If GPL is allowed to get away with this, one cannot contemplate the new terms and conditions they are likely to impose when application will be made for the service to be restored.

"They cannot terminate the service - they have enough other means to collect their revenue. As it is now, there are problems with the bills GPL is sending out. They are sent out late - they are for estimated billing and there are charges for miscellaneous amounts. We have written GPL seeking an explanation for these miscellaneous amounts and have not yet received any response or explanation for same," Persaud said.

He disclosed that scores of consumers have been besieging the PUC office to complain of the irregular billing and questionable amounts claimed by the corporation and the matters have not yet been satisfactorily determined.

Persaud declared:"GPL cannot be allowed to impose draconian measures on the nation and I respectfully seek your indulgence and intervention. We must always bear in mind also that the Government is a shareholder of this corporation and its voice must be heard."