APNU+AFC repeats call for public utility subsidy for low income households

Oct 27, 2022 News

Kaieteur News – The opposition-led A Partnership for National Unity + Alliance For Change (APNU+AFC) coalition is repeating its call for water and electricity services for low-income households to be subsidized by the government, to ensure that no household in need, is denied these essential utility services.

Youth and Economic Policy Advisor to the Office of the Leader of the Opposition, Elson Low said during a press conference on Tuesday that the request is in line of the party’s vision on the issue.

“Our people-centered approach can easily cover water, electricity and other essential services and move away from the PPP approach of exploiting our people. As such, the waiving of all reconnection fees (owed and future) is also a policy we will adopt…” Low said.

He explained “…Our bottom-line remains that our oil wealth belongs to our people and as such must be used to lift the quality of life of Guyanese families. As such, we are committed to honoring the constitutionally-enshrined social and economic rights of citizens. We are committed to realizing the UN SDGs. Most of all, we are committed to the moral duty of ensuring all Guyanese enjoy a high quality of life”

The request by the political opposition comes even as the Public Utilities Commission (PUC) ruled last week that the $7,500 for the reconnection of the water supply to residential customers “shall remain in place.”

Earlier this month, Low made a call for the Government to assist low income earners, pointing to finding in an International Monetary Fund (IMF) report. He noted that, “The IMF advises that Guyana should ease the burden of prices on the most vulnerable groups of society, by gradually unwinding untargeted measures and instead further develop and strengthen a well-targeted social safety net.”

Against that background, Low said that the opposition called on the government to urgently introduce an electricity subsidy for low-income households.

In this scheme, he explained that households whose total monthly light bill is less than a specified dollar amount (a cap) will not be required to pay the Guyana Power and Light Inc (GPL). He said the government will stand the costs and compensate GPL for the total amount forgone.

“The cap must be chosen to cover as many low-income households as possible. Those whose light bills are above the cap will continue to pay GPL as per the norm for now,” Low said.

He stressed the advantages of this proposed subsidy effectively targeting those who are most in need of assistance.

He said, “As the scheme will use the existing GPL billing system, administrative costs to delivery benefits will be minimal for the government; and participation costs non-existent for beneficiaries; the use of a cap can incentivize households to become more energy conscious in using electricity, and benefits are predictable and continuous (not one-off).”

“…As the next government, we have crafted and will implement these and other measures to guarantee every Guyanese a high quality of life,” Low asserted.

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APNU+AFC repeats call for public utility subsidy for low income households

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