Chief Executive Officer of GPL, Mr. Robin Singh, however, declined to go into further details on the matter during a news conference, saying only that he is “not in a position to elaborate”.

According to Singh, the Berbice Power Stations at Canefield and Onverwagt, with a substation at No.53 Village, have suffered severely from lack of maintenance. In this regard, he noted that overall generating capacity in Berbice is currently insufficient to provide consumers with a reliable power supply.

Singh also said that the main generating plants at Canefield and Onverwagt would need major and expensive overhauling and or replacement.

He feels the short-term answer is to relocate most of the power company’s Mobile Caterpillar Units to Berbice.

He pointed out that six of the 13 Mobile Units were out of operation when the present management took over recently. “We are making a major effort to restore these units. These are not, however, base load units and cannot sustain a regular supply of electricity on a permanent basis,” he said.

In was in light of this that the recently appointed CEO of GPL indicated that the power company is seriously considering negotiating a Power Purchase Agreement with an Independent Power Producer for Berbice.

Singh also announced that the 800-odd persons, who have paid for and are awaiting electricity connections, should all be connected by the end of July. He said GPL would not accept payments for new connections until July 1.

“At best, our current analysis of our situation indicates that, without an increase in rates, we can meet the cash requirements for our normal operations over the next three months and meet current and a major part of overdue maintenance costs,” Singh said.

Giving an update on GPL’s operations countrywide, Singh said power stations in the Essequibo region are in reasonably good condition, except the one at Wakenaam, which will need an overhaul by August.

According to him, the progress of much of this overhaul and maintenance programme require in excess of G$500M and will depend on the company maintaining a consistent cash flow.

“We also have to meet outstanding and inherited liabilities beyond normal operations,” he told reporters at the GTV Channel 11 Studios on Homestretch Avenue.

The recently appointed CEO also noted that GPL’s inventory level was severely depleted and has to be restored in order to meet the requirements for the connecting of new consumers and for critical maintenance of the transmission and distribution systems.

“In so far as tracking commercial losses from theft and other causes are concerned, we take this matter very seriously. We shall be reviewing the operation of the commercial department in order to improve both customer service and cash collection, and we will shortly begin the introduction of selective replacement of inaccurate meters in the system,” he stated.

Singh also indicated that in order to meet the peak demand, the West Demerara power station has to be supported from the operations at Garden of Eden, even though the present link has severe limitations on the amount of power that can be transferred. GPL will thereafter, be relocating another mobile generating set to this area, he said, adding that this is only a short-term measure. He said a medium to long-term solution has to be identified.

With these arrangements in place, the Demerara system will, over the next six months, have just sufficient capacity to meet the expected peak demand of 60MV, Singh contended.

“However, and especially when the larger units are taken out of service for maintenance, there will be periods when power cuts will occur, even though we do not anticipate that they will be prolonged,” he told reporters.

Power cuts may also infrequently occur from the fact that the power transmission from Garden of Eden to Georgetown is not fully reliable and is subject to “line traps”, Singh pointed out.

Chairman of the GPL Board, Mr. Ronald Ali, recalled that at its inaugural meeting, the Board approved the deferment of an increase in electricity rates applied for on January 28, 2003.

He said GPL submitted a final return certificate to the PUC on April 30. That document entitled the Company an increase in public rates of approximately 27 per cent.

However, by letter to the Public Utilities Commission on May 28, a further deferment of the rate increase in basic rates was requested up to the first of July.

According to Ali, it remains the Board’s policy and determination to maintain the cost of electricity to the consumer without an increase in the present rate.

Ali, however, emphasised that the Board has based this decision on the following considerations:

** Management’s cash flow projections being able to take account of a reduction in management fees of about 60 per cent.

** Reduced levels in fuel costs from those earlier in the year

** A forecasted cash collection rate in the order of 94 per cent, and,

** The Company being able to negotiate payment of outstanding liabilities and claims over an extended period.

Ali said, too, that GPL’s Board has been given a very specific short-term mandate by the Government as sole shareholder.