Resolution of M&CC/GPL controversy likely by Friday - PUC Chairman

Resolution of M&CC/GPL controversy likely by Friday – PUC Chairman

Dec 15, 2009 News

A meeting yesterday intended to help bring an amicable and swift resolution to the disagreements between Guyana Power and Light Incorporated (GPL) and the Mayor and City Council of Georgetown (M&CC) was regarded as cordial and has set the stage for further discussions.
This was the view of Chairman of the Public Utilities Commission (PUC), Justice Prem Persaud, after he concluded deliberations involving the two parties. “It was a pleasant forum and we had meaningful discussions but we have to continue so that they can reach a mutual agreement.”
GPL and the municipality have been at loggerheads for the past few weeks, each claiming that the other owes millions of dollars for service provided. The move to seek the intervention of the PUC was first proposed by the municipality last week Wednesday, after the power company circulated and published in the press a letter which entailed an ultimatum if the municipality did not honour an agreement that was reached at a meeting between the two parties last month.
GPL, in the letter, alleged that officials from the municipality had accepted that the two parties would exchange cheques to the tune of just over $113 M, an agreement it claims the municipality, among other things, has reneged on.
According to GPL, the municipality has not honoured its electricity bill since last year and that accumulated interest now sees it owing in excess of $1B. However, the municipality claims to have documentation to prove that the power company owes much more when interest is added to the period of its non-payment of rates and taxes.
It was also noted by Acting Town Clerk, Yonette Pluck-Cort, that the municipality also owes rates and taxes for the new Kingston Plant.
But GPL has refuted this claim, outlining in its letter that it does not yet owe rates and taxes for the new Kingston Plant as it has not yet been invoiced by the municipality. According to GPL, the new property has to be valued before an invoice can be issued.
The power company had argued that because of the municipality’s unwillingness to address its indebtedness it had decided to disconnect the Kitty and La Penitence Markets. GPL had previously disconnected a number of municipal facilities including City Hall, which up to yesterday, was being powered by a generator.
Some other facilities including the Municipal Abattoir were disconnected then subsequently reconnected, given the nature of operation there. The date for the markets’ disconnection was set for last week Thursday. However, at an extraordinary meeting on Wednesday, City Mayor Hamilton Green proposed that emergency measures be taken to prevent GPL from taking drastic action.
He suggested three courses of action, the first being that the municipality seek the intervention of the PUC; seek to secure an injunction against the power company and engage talks with Minister of Local Government and Regional Development, Kellawan Lall.
Justice Persaud, in a letter forwarded to the media, stated his willingness to intervene in the matter hence the proceedings yesterday.
Further discussions, Justice Persaud said, are slated for Friday when he hopes the controversy could be officially laid to rest. “I believe things will come to an end because the meeting was very pleasant and I think they are willing to embrace a resolution.”
At the municipal statutory meeting yesterday, Mayor Green disclosed that he offered no little talk at the PUC-hosted meeting on the need for GPL to restore electricity to City Hall as the facility has been effectively compromised.

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Resolution of M&CC/GPL controversy likely by Friday – PUC Chairman

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