Decisive steps needed on electricity front Editorial
Guyana Chronicle
February 16, 2002


THE industrial and economic advancement of a country is inextricably linked to a cheap, reliable and efficient supply of electrical power.

Here in Guyana the debate and trials and tribulations of satisfying the demands for an efficient supply of electricity have been with us for decades.

And every time the problem seems to be going away, new difficulties arise.

Between the late 1970s and early 1990s the electricity situation under the state-owned Guyana Electricity Corporation (GEC) became chaotic and unbearable with blackouts a norm, frequent equipment breakdowns, shortage of fuel and mismanagement combining to wreak havoc among Guyanese.

It was during this period that the infamous power barge became a national scandal.

Some hope was restored in the mid-1990s with the acquiring of the Wartsila plants and the rehabilitation of others, but that was not enough and there were calls from a wide cross-section of society to privatise GEC.

The Government acceded and just as an agreement was imminent with the Sask Power firm from Canada, violence erupted after the 1997 general elections and Sask Power withdrew, citing political instability.

Eventually, an agreement was clinched with the current UK-based firm and there was once again a sigh of relief among Guyanese over a reliable supply of electricity.

But they are still faced with an unreliable, inefficient and expensive power supply.

The new company, while it must be acknowledged has made modest improvements, has done so with the consumers facing continuously increasing costs and it is asking for a further huge 15.8 per cent hike in tariffs.

It is commendable that the Government has firmly said that it would not support this increase without a complete review of the situation.

However, the Government needs to take decisive steps to address this problem with great urgency if Guyana is to become competitive on the international market, bearing in mind that it is now faced with the challenges of globalisation.

One of the significant contributors to high costs of production is the high cost of electricity.

In the long-term there is the Amaila Hydro-Project which gives hope and the development of more such projects should be encouraged and facilitated.

Studies are also under way on wind and other forms of alternative energy and the focus must be maintained on these.

However, in the meantime, the difficulties with the power company need to be resolved expeditiously to bring relief to consumers.

Problems like these contribute to the decline of the morale of the Guyanese people and the electricity sector, an essential component in the national effort to create the stability, economic advancement and living standards all desire, has to be put on a firm footing.