Georgetown: In wake of the significant drop in fuel prices on the international market, President Donald Ramotar is in negotiation with the Guyana Power and Light (GPL) over a possible reduction in electricity tariffs.
President Ramotar said the proposal was made to the power company following the significant drop in fuel prices on the international market.
The price for fuel has been dropping around the world since last June, with the latest price of fuel in Venezuela being recorded at US$39.19 per barrel, the lowest in almost half a decade.
According to the President, the proposal was tabled before a decision was taken by his Government to reduce Guyana Oil Company (Guyoil) fuel prices by 30 per cent.
“I had asked GPL to examine the possibility for reduction of electricity in light of the fuel cost and I had done this before the fallen fuel prices internationally were reflected locally,” President Ramotar said.
Citizens across Guyana have repeatedly complained about the high cost of electricity. Due to the high electricity tariffs charged by GPL, some consumers have resorted to stealing electricity.
A Partnership for National Unity (APNU) General Secretary Joseph Harmon had called on the Government to find ways to reduce electricity tariffs and “get off Guyanese backs.”
In response, Prime Minister Samuel Hinds had appealed to the Opposition to refrain from speaking in a manner that may cause GPL’s customers to think their stealing of electricity is justified.
GPL is reported to have suffered up to 45 per cent in losses over the past 10 years. Hinds had stated that reduction seems to have stalled a year ago, at about thirty to thirty one per cent. GPL has been on a continuous quest to reduce its losses over the years.
If the electricity tariffs are reduced, Guyanese will likely pay less than many Caribbean countries, especially those whose generation of power is based on petroleum products.
The Prime Minister had stated that the President of the Caribbean Development Bank (CDB) indicated that the cost of generation and delivery run between US 30 cents and US 40 cents (G$63 to G$84) per kWh. In Guyana the cost to produce and deliver electricity is US 33 cents per kWh.
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