Lindeners being misled by bad leadership- Prime Minister
- reminds that electricity subsidy has lessened not removed
Georgetown, GINA, July 18, 2012 -- Source - GINA
Prime Minister Samuel Hinds who holds responsibility for the electricity sector in Guyana, this evening said that it is unconscionable for anyone to call for the initial subsidy that Lindeners were enjoying, to be maintained.
He was at the time speaking on a special programme along with PPP/C Member of Parliament, Manzoor Nadir, on the National Communications Network (NCN).
The PM explained that in 2011, the $2.6M 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.
“With electricity prices subsidised by 90 percent or more in Linden, it does not make economic sense…the average consumption of power in Linden at the domestic level is 2 to 3 times what it is in other parts of the grid. So the consumers in Linden have an opportunity to lower the level of consumption and lower their cost…this is a reform in the electricity supply,” he said.
Prime Minister Samuel Hinds and PPP C , Member of Parliament Manzoor Nadir with moderator Paul Moore during discussions on the Linden electricity issue
He recalled that in 1976, the late Forbes Burnham was of the view that the provision of electricity in Linden should be integrated into the national grid, which was a step in integrating the society as a whole.
With regards to the planned five-day protest actions that commenced today, the Prime Minister expressed his disappointment at the closing of the bridge as well as the move by the Linden Utilities Co-op Society Limited (LUCSL) to shut down of the electricity which in turn affected the water system (all of the water stations in the Wismar-Christianburg area were shut off).
Moreover, those leading the protest have been threatening the operators of the water and electricity stations on the Mackenzie side, which continued to function.
The blocking of the bridge has implications for person travelling to and from Lethem. Prime Minister Hinds lamented. “This inflicts untold harm on Linden and I feel very strongly about it, because this Government and particularly myself, have been advocating Linden as the place to be; to businesses and as the place that would be the gateway to and from Region Nine and Northern Brazil.”
He said people have been falling for leadership that has in effect, misled them and there are also a few who are willing to use force to keep Linden locked up.
“The problems for Linden rest on the heads of those leaders who are leading this shutting down of Linden and the closing of the bridge…I am encouraging everyone who has suffered losses to take the instigators to court; sue them for those losses,” he urged.
Meanwhile, Nadir said that the issue is having all of Guyana paying a fairly equitable rate for electricity and not one group of people enjoying a highly subsidised rate. He made reference to Mahdia and Port Kaituma, which are now in the electricity system and have a similar structure; whereby a certain amount of kilowatts are given at a very low rate, while they pay a higher rate for consumption above a certain limit.
This structure is particularly designed to ensure that vulnerable citizens are protected from undue financial burdens.
“50 kwh at $5 is $250, the pensioner who is burning 50 kwh per month on the coast has to pay $2,500 minimum, almost 11 times what a Lindener would pay…these are some of the hard decisions that have to be made and this PPP/C Administration made them over the last 20 years that is why this economy has rebounded. We have made the hard decisions and put in place safety nets for the vulnerable,” he explained.
He pointed out too, that it is not the case where the entire Linden is on a starvation budget and as such these adjustments have to be made. He explained too, that once people learn to conserve on the use of electricity, the price will remain almost the same as when electricity was heavily subsidised.
Referring to the protest actions, he said that, that appear to be driven by a few people who wantonly use electricity and have their own vested interest at heart. He added that, “while you have a right to protest and let your voices be heard, you do not have the right to prevent another person from enjoying their rights and that is the fundamental pillar of democracy.”
A press release issued today by the Office of the Prime Minister stated at present prices, generation costs in Linden will be about $ 60 per kWh, and when commercial and overhead costs are included, the cost is increased to $75- $80 per kWh.
In the release, the PM reminded that subsidy to citizens in Linden is not being removed, all at ‘one go’, but rather, in reasonable stages to allow for adjustments by the people of Linden, and to allow also for adjustments of household budgets.
“Every year in which the electricity reform is put off, and in which the people of Linden grow and make more decisions based on electricity subsidised at a rate of 90 percent or more make the eventual adjustment even more difficult,” he said.
The new tariff structure, which took effect from July 01, has been structured, taking account of the call from opposition parties in Parliament that it be structured in such a way that the initial quantities of electricity taken, are heavily subsidised.
This arrangement allows for every family to share more equally in the subsidy, and those with lower incomes are impacted least of all.
“This Government would not give up its vision of Linden as truly the second town of Guyana, leading in the inward growth and development of our country, but we need the help of the average, reasonable Lindener to restore normal conditions in Linden, as early as possible, and to minimise the damage being inflicted on Linden,” the release stated.
