Submission of payment plan not enough for reconnection

Jan 06, 2010 News

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City Hall power supply…

– Dindyal

There was never any commitment on the part of the Guyana Power and Light Incorporated (GPL) to reconnect the supply of electricity to City Hall following the exchange of cheques between the two parties last month.
At least this is based on the details of an agreement which was made in the presence of Chairman of the Public Utilities Commission (PUC), Justice Prem Persaud, and signed by a representative of both GPL and the municipality.
On December 22 last, municipal Budget Manager, Monica Irving, and GPL’s Aeshwar Deonarine both accepted the terms on which cheques would have been exchanged in order to honour debts owed by either party. In the agreement it was noted that both parties agreed to issued cheques in favour of each other in the sum of $179,496,876. It was accepted too that the amount paid by GPL will discharge its rates and taxes up to and including 2009 amounting to $116,891,747, together with $62,605,127 representing the Guyana Electricity Corporation’s obligation to the Mayor and City Council of Georgetown (M&CC).
In addition both parties agreed to waive any and all interest charges.

It was detailed in the agreement too that the amount exchanged does not include rates for the property at Kingston, Georgetown, on which GPL has built its 20.7 megawatt power plant and that the M&CC will in due course invoice GPL for the said property which it acquired during last year.
It was further stated in the agreement that the M&CC cheque would have partially discharged its obligation for electricity charges owing as at December 2009 and that the municipality at that point had not yet finalised its payment plan as was previously promised. However it was noted that the plan was expected to be submitted in due course.
Absolutely no mention of a plan to reconnect City Hall following the exchange of cheques was mentioned in that agreement.
However, officials of City Hall are adamant that as part of the agreement, GPL should have reconnected buildings within the compound of City Hall. Failure on the part of the power company to fulfil the municipality’s expectation has even been regarded as a bit of deception, by City Mayor Hamilton Green.
In amplifying its concerns, the municipality through Deputy Mayor Robert Williams had inked a letter to Bharrat Dindyal, GPL Chief Executive Officer, which was carbon copied to the PUC and GPL Chairmen.
The letter dated December 28, almost one week after the exchange of cheques, acknowledged the details of the agreement and further noted that the remaining amount of $22,976,294 owing by the municipality was paid towards street lighting even though it was accepted that the cost was being dealt with separately to allow for verification to be completed.
Williams noted that during the meeting chaired by Justice Persaud, the M&CC had proposed to meet all current payments from January 2010 on the basis of the bills supplied for those installations other than street lighting.
He noted too that the municipality had requested to be given a short period for discussion to take place with itself and Government to determine a way forward regarding street lights in the city, since the area of expenditure poses serious financial implications.
According to Williams’s letter, the discussion with Government would be centred around: Government accepting responsibility for such payment or part thereof; GPL being asked to collect a sum of money on each customer’s bill representing contribution towards street lighting; payment of GPL for installation on all Council’s reserve and increases in property tax to meet GPL’s bills.
Williams also mentioned that it was offered that the process of verification of street lights and rates charged against each installation be reviewed by City Hall and that GPL had accepted that meters can be paid for individually.
The Deputy Mayor underscored further that in keeping with the understanding the municipality expects reconnection to those facilities that are still without electricity, even as he announced council’s proposal for a continuance of discussions yesterday. However that meeting never came off.
Williams disclosed yesterday that the municipality has submitted a payment plan and has since learnt that there will be no further discussion with the power company until the board has concluded perusal of the municipal plan.
However, Dindyal in an invited comment yesterday said that he has not been informed that a payment plan has been submitted by the municipality. He noted though that the reconnection of the buildings at City Hall will be dependent on the board. According to the CEO, “this is not the first time that City Hall is presenting us with a payment plan. There were many plans that we have had to terminate because they had breached agreements we had made.” As such Dindyal noted that the council’s submission of a plan will simply be regarded as “another plan” and will not be considered grounds for reconnection. “It is all up to the board now and just a payment plan will not be enough for such a decision.”

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