Gov’t open to further discussions on Linden electricity tariff – President Ramotar
Georgetown, GINA, July 20, 2012 -- Source - GINA
What the Government offered on April 19 in consultations with A Partnership for National Unity (APNU) with regards to the new electricity tariff structure for Linden and which they had agreed to but, subsequently reneged on, remains on the table for more discussion, President Donald Ramotar told the media this evening.
President Donald Ramotar at press conference at Office of the President this evening
“We spoke of gradualism and selectivity then and, we are prepared to discuss this proposal once again. My Administration is repeating its willingness with all stakeholders in order to find the best approach to bring Linden, over a specified time, to the same rates as the rest of the country. However, fruitful discussions cannot be had in the atmosphere that currently prevails, but we are ready to discuss all of these matters with all the stakeholders once normalcy is restored,” the Head of State said during a press conference at his Office.
The President reminded that Government has never tried to remove the entire subsidy at one go, but has put a system in place to gradually incorporate Linden with the rest of the country with respect to electricity rates.
The new rates being asked of Lindeners average about half of what others pay in Bartica, Berbice and Essequibo.
Under this new structure Lindeners will receive the first 50 kwh per month at the existing prices. The full cost for electricity in Linden is $ 75-80 per kwh; however, even after the first 50 kwh, bauxite pensioners will pay $50 per kwh, others $50 and commercial and industrial outfits will pay $ 65.
Since 1976, it was recognised by the late Forbes Burnham that the provision of electricity in Linden should be integrated into the national grid.
He reminded too, the full subsidy that Lindeners have been enjoying over the years, has become unsustainable.
In 2011, the $2.6B of electricity subsidy to Linden averaged out to about $17,000 per month, per household and this means, that about 4,000 to 5,000 domestic consumers in Linden received a subsidy of $204,000 per year each.
The President is calling on the leaders to act responsibly, since the current state of affairs is doing great harm to the Linden community. He also called on the local media to steer clear of sensationalism, which will only aggravate an already critical situation.
The principal way of improving electricity supply in Guyana is reducing technical and commercial losses. Reduction in technical losses requires investment that would see the doubling up of distribution networks; while a change in culture is needed for the reduction of commercial losses.
However, the average consumption of power in Linden at the domestic level is two to three times more than what it is in other parts of the grid.