Jagdeo rules out hike in electricity charges

Mar 14, 2022 News

Vice President, Bharrat Jagdeo

Kaieteur News – Vice President Bharrat Jagdeo has assured Guyanese citizens that their electricity bills will not climb as a result of the ongoing conflict between Russia and Ukraine, which has significantly impacted the cost for fuel.
As seen in gas stations across the country, the price for fuel has spiked over the past weeks, due to sanctions being imposed on Russia as a result of the fallout between the European countries. To this end the state-owned Guyana Power and Light (GPL) Inc. only a few days ago said it may have to increase the tariffs if the energy consumption is not reduced by customers, as the spike in global fuel costs has also driven up the company’s operating expenses.
To this end, Jagdeo in a brief comment on his Facebook page assured that the charges would not go up, due to the growing cost of fuel. On Sunday the VP posted an excerpt from his address at the panel discussion recently hosted to mark the death anniversary of Dr. Cheddi Jagan.
According to Jagdeo, “We will keep the electricity prices the same way, and water prices, we would have to subsidize it to make sure that the impact is not felt by ordinary people.” The VP did not however explain what specific measure or measures would be put in place to ensure that electricity charges do not increase.
GPL complained that fuel prices have reached US$140 per barrel, thus driving up the company’s operating expense to a whopping $4.5 billion monthly, while electricity sales merely account for $3 billion. The power company’s Chief Executive Officer (CEO), Mr. Bharat Dindyal, during an exclusive interview with this publication on Tuesday, said that while this increase is not presently being reflected on customers’ bills, it may very well be an option if the electricity use is not reduced.
To this end, government can take one of a number of options available to them to ensure that the fuel price does not contribute further to the already burdensome cost of living. One option would be for the government to step in and subsidize the power company to ensure that its service to customers is not affected.

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