GPL restores power to some city facilities

Nov 19, 2009 News

– but City Hall still in darkness

The Guyana Power and Light Inc. (GPL) yesterday restored power to the municipals abattoir and to the Kitty and Liliendaal Pump Stations but left the City Hall without electricity.

GPL in a statement yesterday also denied claims by the Mayor and City Councillors of Georgetown (M&CC) that it owes the municipality $700M in rates and taxes.

Instead, the power company said, their records reveal that the outstanding rates and taxes owed to the city show a figure of $113M.

GPL said that it wished to clear the air and “emphatically state that it does not owe the Mayor and City Council $700M as reportedly stated by the Council’s PRO Mr Royston King.”

According to GPL, while its records indeed reflects a balance for outstanding balance for rates and taxes to date of $113M, its annual rates and taxes is $22M while the annual electricity bill for the M&CC is approximately $180M.

On Monday, GPL severed power to City Hall, the Municipal Abattoir and the Liliendaal pump station for more than $600M in electricity charges owed by the city management.

According to GPL, numerous meetings were held between GPL and M&CC with several agreements made to reduce the debts but “were repeatedly breached by the M&CC within months.”

Further, GPL said, numerous correspondences from the company to M&CC indicating its willingness to settle all outstanding debts by way of an exchange of cheque have been ignored. “GPL pointed out to City Hall on countless occasions in writing that interest on outstanding taxes should be waived as GPL was always willing to pay but needed to have this done through an exchange of cheques. These correspondences have received no response to date.”

GPL said that as a result of this, it has made a decision not to pay interest on any rates and taxes due to City Hall until the matter is resolved. “In any case, GPL’s licence also allows it to charge interest on overdue balances which it was willing to forego if the M&CC reciprocated.”

According to GPL, M&CC payments have been inconsistent with few payments received during the latter half of the year. “Currently, Council has chosen not to pay GPL for over twelve months. In the public interest, GPL has restored power to the abattoir and the Kitty and Liliendaal Pump stations. However, disconnection of power to the City Hall remains in force. It should be noted that GPL reserves the right to disconnect any M&CC account if Council continues to fail to honour its financial obligations to the Company.”

GPL revealed that it met with M&CC officials yesterday where the matter was again discussed. Another meeting is scheduled for Saturday.

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GPL restores power to some city facilities

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