No decision yet on GPL tariff increase

Jul 16, 2008 News

The government has still not made any decision to raise tariffs at the Guyana Power and Light Company (GPL) nor has there been a decision to inject any significant amount of money into the entity to ensure that there are no tariff increases.

This is according to Chairman of the Board of Directors at the utility company, Winston Brassington.
He added that the government will have to make a detailed pronouncement on the situation. The company is currently not collecting enough rates to balance cash flow, Brassington insists.

Compounding the situation is the fact that the company is experiencing technical and commercial losses amounting to some 34 per cent.

On May 28 last, GPL announced that a tariff hike, which it considered a last resort, could have come within a month, but 50 days later a decision is still to be made.

At that time, Brassington lamented that the company’s losses were recorded at $400M monthly.
He pointed out that GPL was examining four alternatives, one of those being an increase of tariff.

The other three choices included an increase in conservation measures, load shedding at peak hours, and Government support to GPL in the form of higher tariffs for Government customers or an overall level of cash support.

The fuel bill is $24B per annum, according to Brassington, and fuel prices on the world market are currently in the vicinity of US$136 and US$140 per barrel.

Brassington added that since April, the continued increase in fuel price implies that for the rest of the year, a shortfall of some $4B can be expected.

This, he said, is based on current prices that have been rising rapidly. “With each new shipment we face a higher price practically…The current problem is impacting us financially in that we have a relative build up in recent times.”

In an attempt to balance cash flow without significantly increasing the prices, consumers will have to pay. The company has had to cut all its non-essential expenditure on the operational side.

“We do have to make a decision shortly because the situation is not sustainable, given that we are losing about four hundred million a month.”

One key factor in determining GPL finances, Brassington noted, is the effect of the daily peak and the benefits of the conservation.

As the peak falls, GPL is expected to use less diesel while more is consumed as the peak rises.
GPL services approximately 120,000 domestic customers.

Latest News

No decision yet on GPL tariff increase

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

GPF arrests Presidential Guards by 48 runs as cricket action gets...

Superbet supports One Guyana 3×3 Quest

FIDE Master Drayton outclasses strong competition...

Wiltshire, Chris dominoes tourney set for March

Houston Sec’, New Central, Saints sent packing

Charles’ all-round performance helps EBDCA U23...

Features/Columnists

No immigrant should feel safe in America today

If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?

From Bharrat, the Blusterer to Howard, the Coward

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

No decision yet on GPL tariff increase

Share this:

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]