Latest update December 4th, 2024 2:40 AM
Region Nine petitions Parliament over electricity rates hike
– wants $1,200 fixed payment to remain until consultations
Residents of Region Nine, including the bordering community of Lethem, has moved to the National Assembly for a hold on electricity rates hike for that area.
APNU’s MP, Sydney Allicock
The petition will be presented Monday by Sydney Allicock, Member of Parliament (MP) of A Partnership For National Unity (APNU), during a sitting of the Assembly.
According to the petition, in early January, residents received a letter from the Lethem Power Company Inc.(LMPCI) informing them that the tariff will be increased to $75 per kwh with effect from January 1, 2014.
Allicock said that this represented a 54.6% increase over the original, sanctioned tariff of $45 per kwh “even though there has not been any recent, dramatic increase in the cost of fuel or maintenance”.
“And whereas the residents and other stakeholders were not consulted on this occasion and whereas the residents of Lethem and its environs have viewed this imposition as disrespectful, a departure from the norm and a scheme to have them pay for assumed, potential benefits before hand,” the petition stated.
The petition explained that Lethem, Culvert City, Tabatinga, St. Ignatius and MocoMoco are communities in the Administrative Region Upper Takatu/Upper Essequibo with the first three made up mostly of citizens from coastal Guyana and with growing Amerindian populations. St. Ignatius and MocoMoco are purely Amerindian communities.
St. Ignatius is required to pay electricity for the distribution of potable water to its residents.
Over the years, the communities were accustomed to receiving free electricity under the Regional Democratic Council but in 1995, a payment for electricity was implemented where residents were required to pay US$1,200 per month for the consumption of electricity.
According to the MP, LMPCI replaced the Regional Democratic Council, Region Nine and over the years, instituted increases in the tariffs for electricity in consultation with the general population of Lethem and its environs.
“…the residents were always respectful in accepting those increases despite their economic difficulties because of their participation in the consultation process. And whereas over the years, the rates for residential, commercial and industrial customers were the same across the board despite citizens’ protestations who thought that that was not in keeping with national and international best practices.”
Allicock argued that the decision to raise the electricity rates was sanctioned by Prime Minister Sam Hinds.
The MP made it clear that the Regional Chairman of the area has “admitted that he was assured by the Hon. Prime Minister of Guyana, that there will be no increases in tariffs without the normal consultation”
Region Nine has moved to Parliament to block an electricity rates hike announced last month.
The Parliamentarian believes that the “imposition” will place the residents of Lethem and its environs at an increased disadvantage in relation to other communities in Guyana which benefits from subsidized electricity, and which pay between $55 and $58 per kwh.
Residents of Region Nine now want LMPCI to rescind its decision in relation to the increase in tariffs immediately and for consultations to be done to determine what is affordable.
It also wants the electricity regulators, the Public Utilities Commission (PUC), to be “arbitrators in this impasse”.
The petition also called for a suitable “qualified professional” to be employed to head the Board.
Allicock urged the National Assembly to instruct the Prime Minister to take all steps necessary to minimize waste and theft at the power company.
The objections of the Lethem residents against the rates hike will follow that of Linden a few years ago which led to the Region 10 town being shut down for one month and protests which left three dead. Government has placed a hold on the hikes there.
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