Electricity consumers over billed for January Editorial
Stabroek News
March 2, 2002

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The 15.89 per cent increase in electricity tariffs was not halved and implemented from February as was announced by Prime Minister Sam Hinds and the Guyana Power and Light Inc, but from January.

Consumers collecting bills for January would find that they have been billed for a full 15.89 per cent hike and many would find slips inside their bills saying that they had been over billed by eight per cent and could discount this amount in paying their January bill.

Chief Executive Officer of the power company, John Lynn, said that the increases were applicable on bills sent out by the company once the interim return certificates had been submitted to the Public Utilities Commission (PUC). Hence all January bills going out after January 28, would reflect the higher rates.

Hinds had said that only eight per cent would be charged for electricity used in February and the full increases would apply to March consumption.

However, Hinds has since written to the government's joint-venture partner, the Commonwealth Development Corporation (CDC)/ESBI, asking that the increases be deferred until a number of issues are ironed out, including the performance of the management contract.

Meanwhile, GPL had a meeting recently with the Private Sector Commission (PSC) representatives, George Jardim, David Yankana and Edward Boyer at the PSC's request to express its members' concerns about the electricity sector.

A release from Guyenterprise said numerous issues were raised which drew candid and forthright answers from GPL's CEO and its Chief Financial Officer Phil Jacques.

Stabroek News understands that GPL revealed that its cost of generation was US 12 cents per kilowatt-hour but losses account for about seven cents of this. The cost of electricity to consumers is US 16 cents per kilowatt-hour.

GPL, the release said, gave an outline of the cost and difficulty of installing standard fraud proof meters to deal with outright theft involving staff and householders and even big corporate businesses. It also told the PSC officials that a US$16 million injection was necessary to bring the distribution system up to standard to lessen technical losses of electricity.

The PSC, the release said, queried the pace and manner of injecting capital to fund the promised expansion programmes and also queried the line and commercial loss targets, the management contract, rebalancing of rates to make businesses more competitive and the employment of qualified Guyanese. GPL responded and promised to keep the PSC updated on developments.