GPL getting instructions from higher authority – Mayor Green

Jan 10, 2010 News

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More than a month has elapsed since City Hall has been without the supply of electricity from the Guyana Power and Light Incorporated (GPL) and according to City Mayor, Hamilton Green, agreements between the two entities may not be enough to resolve the predicament.

It is his belief that the power company’s unwillingness to reconnect City Hall to its grid is an indication that it is working on the instruction of a higher authority.

According to Green, based on the discussions that had ensued between the two entities with the guidance of Chairman of the Public Utilities Commission, Justice Prem Persaud, things should have returned to normalcy since the two parties had exchanged cheques, a few weeks ago.

Green said that he has had discussions with his officers and has learnt that a payment plan submitted by the municipality is currently gaining the attention of the GPL Board of Directors.

However, the Mayor is adamant that the perusal of the plan is not the reason for the delay in the reconnect of the main municipal buildings within the City Hall compound.

“It seems to me that GPL is being instructed to punish City Hall…I see this as a part of a master plan to punish us. But it isn’t just City Hall that will suffer but the citizens will also suffer in the long run….but they don’t see it like that.”

The Mayor disclosed yesterday, too, that he has been informed that the cemetery has also been relieved of electrical supply from the power company.

“This situation is very disturbing because we do not owe GPL for any of the buildings at City Hall…and as far I know we only owe for street lighting. Yet that hasn’t been affected.”

But according to GPL Chief Executive Officer, Bharat Dindyal, the power company reserves the right to disconnect any building or buildings belonging to a customer that has multiple electricity accounts.

Once that customer is found to be in default Dindyal said any of his or her accounts could be a target for disconnection. “The municipality I am sure is aware of this. We have on many occasions tried to work in collaboration with the municipality but they keep breaching agreements we make with them. “

Dindyal recently expressed some amount of uncertainty as it relates to the municipality’s submission of a payment to the power company. He noted though that the reconnection of the buildings at City Hall will be dependent on the recommendations of GPL Board of Directors. 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.”

Dindyal asserted 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.”

This newspaper just last week reported that contrary to the reports of some municipal officials there was never any commitment on the part of GPL to reconnect City Hall following the exchange of cheques between the two parties last month.

This disclosure was based on the details of an agreement which was made in the presence Justice 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 parties.

In the agreement it was noted that both parties agreed to issue 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 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 discharge 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. Failure on the part of the power company to fulfil the municipality’s expectation has even been regarded as a bit of deception by Mayor Green.

In amplifying its concerns, the municipality through Deputy Mayor Robert Williams had inked a letter to GPL’s Dindyal and copied to the PUC and GPL Chairmen.

The letter dated December 28, 2009, almost one week after the exchange of cheques, acknowledged the details of the agreement and further stated that the remaining amount of $22,976,294 owing by the municipality was paid toward 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 an earlier 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 be asked to collect a sum of money on each customer’s bill representing contribution toward 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, a request which is yet to be honoured.

 

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