Govt. to slash subsidised electricity to Linden from July 1

Jun 08, 2008 News

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Yesterday, Prime Minister Samuel Hinds and GPL Chairman Winston Brassington held a live programme on the two television stations in Linden to clarify the situation as relates to the impending increases in electricity tariffs,  as well as answer citizens’ questions on the issue.
Prime Minister Hinds said that Lindeners could either opt to pay the new proposed rates from July 1, as stipulated, or face the prospect of going without electricity after October month end, when monies allocated for the subsidy of this vital service would be all gone.
The alternative, in such an eventuality, would be for consumers to pay the full economic rate (GPL rate).
The Prime Minister also noted that, currently, each Linden consumer is subsidized to the tune of $250,000 per year, and that subsidy would be closer to $350,000 with current escalating fuel prices.
This will exceed the budgetary allocation by $340 million if economic rates are not implemented by July 1, he said.
He added that the increased rates were inevitable, as no more money could be put towards electricity without having to cut funds allocated for other important sectors.
However, the general consensus by Lindeners is that the proposed new rates are unconscionable in a town with high unemployment, coupled by the ever-escalating prices of goods and other services.
“People need jobs, there is VAT, now this electricity hike; what are we to do?” one concerned resident asked pointedly.
A meeting planned to address the burning issue of the imminent hike in electricity rates for Linden consumers, first scheduled for Wednesday last, and later postponed to Friday, at the Linmine Constabulary Hall, was abruptly halted on Friday.
Chaos broke out when Region Ten Chairman Mortimer Mingo told the concerned and angry residents that Prime Minister Samuel Hinds, who was expected to meet with them for further consultation on the impending electricity hike, was unavoidably absent, and that the Chairman of GPL, Winston Brassington, would address them instead.
The angry residents, who made their displeasure known, would have none of that, and demanded that the Prime Minister meet with them for further consultations, as had been planned; or, failing that, President Bharrat Jagdeo himself.
Mingo noted that citizens of Linden are understandably concerned about the proposed new rates to be implemented by July 1; and after they were informed of the meeting with the Prime Minister, had turned up at the venue to meet with him and to air their concerns.
According to Mingo, it was hoped that, after consultation with the Prime Minister, a favourable consensus would have been arrived at.
At a previous meeting between Prime Minister Samuel Hinds and concerned citizens, held at the same venue, the Prime Minister had said that between 2001 and 2007, Government expended some $9 billion, monies that could be channelled towards many important social programmes.
He said that a further $734million of the $2 billion allocated for 2008 has already been expended.
The proposed new rates, therefore, are aimed at gradually increasing present electricity rates to reach sustainable economic levels, and in so doing decrease the amount of subsidy Government presently pays, Hinds had said.
As a result, Government is trying to save G$1.2 billion through the proposed electricity increases by December of this year, according to reports.
IMC Chairman Orrin Gordon, in reference to the perceived ludicrous proposal, remarked, “Somebody has to be crazy to say that they want to save $1.2 billion by December – that works out to $12,000 per month per household, an increase of 40 per cent in a community where unemployment  stands at 70 per cent. Where are these people going to find the money?”
“The total bauxite wages bill at Bosai does not even meet that in seven months, and they are the major employers in the community.”
Gordon said that, apart from his concern for Linden residents generally, he is particularly concerned about the senior citizens, who would not be able to pay any new rates with their meagre pensions.
The pensioners will receive 100 kilowatt hours free, and will have to pay the economic rate (GPL rate) for any additional consumption.
At a prior meeting, which was addressed by both the Prime Minister and Mr Winston Brassington, persons had noted that escalating electricity cost was inevitable, and had to be paid; however, most had opined that 150 kilowatts, instead of the 100 kilowatts at present rates, would be much fairer and more realistic, and acknowledged that there is indeed need for conservation within the community.
The proposed new rate of electricity would be $53.78 per kilowatt hour for consumption exceeding 100KW for private residences. Consumption below 100KW hour will remain at the present subsidized rate.
On the other hand, the commercial sector would be subsidized for 300KW, and beyond that would have to pay $60 per KW hour.
Linden residents currently pay $5 per kilowatt hour for residential purposes, and $12 for commercial use. ( Enid Joaquin)

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