Georgetown: Budget 2014 provides a sum of $7.7 billion to help meet the needs of electricity generation to the country. Of that amount, $3.7B is for the Guyana and Power and Light (GPL) Inc., and its 170,000 customers, whilst $3.2B is earmarked for the continuation of power subsidies to Linden and Lethem.
Prime Minister Samuel Hinds who has oversight for the energy sector, explained that the provisions to GPL, would see the forgoing of what should have been a 12 percent increase in electricity tariff for GPL customers this year.
Speaking on the National Communications Network (NCN) programme, ‘Budget at a Glance”, the Prime Minister said that on the average, a customer is getting a subsidy of $22,286 this year. This amount would vary for a smaller customer, who may only be getting a $5, 000 support for the year, and for a large customer or business, that support may run to $500,000 or $1 M per year, he explained.
The Prime Minister said the support for GPL is directed more towards capital expenditure and two programmes. The Government has been receiving assistance from the Chinese EXIM Bank and also from the Inter American Development Bank (IDB.)
In the case of the EXIM Bank, GPL has an on-going programme to upgrade its transmission and distribution systems. This programme is nearing completion and GPL is seeking to expand the upgrading exercise.
“It should be finished by July, and GPL is looking to do some additional things, and that includes to start on an additional sub-station at Williamsburg on the Corentyne coast and also to expand the Number 56 substation,” he said.
The 2014 injection to GPL provides too, for the expansion of electricity service to the islands of Wakenaam and Leguan. He said that provisions have been made for these two Region Three island residents to have a 24-hour electricity service. “We have been providing them with limited services mainly in the evening, but with the growth and development of all areas, particularly with the schools and putting in computer systems, more or less everyplace now wants lights not just at night, but 24-hour power. It is a step in our growth and development, and we budgeted for that at Leguan and Wakenaam,” Prime Minister Hinds said.
Also covered are the preparatory works for the replacement of the generators at GPL power station at Anna Regina in Region Two, and for a new power station at Bartica in Region Seven. Government had put in two new generators in Anna Regina in 1996, but now that the area has grown, and the generators are getting close to their 20-year life span, GPL has therefore been seeking to start preparatory work for their replacement, the PM said.
In Bartica, people have been calling for a new power station away from the waterfront. GPL has some locations in mind and will start preparatory work in this regard this year.
The money will also cost non-technical and technical losses of electricity.
Linden electricity
Meanwhile, in the case of Linden, with the budgetary allocation which is a provision for the benefit of 10,500 customers in Region 10, the subsidy per customer will work out to $291,000 per year or close to $24,000 per month on the average, the Prime Minister said.
He said that Region 10 residents are therefore receiving electricity at only 10 percent of what it costs in Linden. The Prime Minister said that when Linden’s average consumption is compared with Georgetown, it is about 50 to 100 percent more.
He said that one reasonable assumption is that people in Linden could cut back their electricity consumption use to nearly half of what it is without suffering any significant loss or comfort.
He pointed out that Government’s argument has been that it would like to see Linden grow and develop, but the town needs to do so on a sound basis.
The Prime Minister again made the call for Linden to start the transition to GPL rates, as it has now been two years since Government began discussions in this regard with the APNU and this was put on hold.
“We need to start the transition…it is going to be painful…but this is something that is outstanding, that has to be made. Linden cannot grow and develop strongly on electricity rates that are only 10 percent of what is required,” the PM said.
Government’s plan had been to, over a five-year period transition Region 10 to GPL rates. In the first instance it was to move the customers to half of the GPL rate, to ensure that everyone across the system is treated equally. This plan which was accepted by APNU was later rejected by the party following outcry from their constituents in Region 10.
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