PRIVATE Sector Commission (PSC) Chairman Ramesh Persaud says the Commission will be analysing the impact of the 10 percent reduction in electricity rates before it makes a definitive appeal to businesses to lower prices for certain goods.Saying that it is too soon to make a definitive pronouncement, Persaud told the Guyana Chronicle that the Commission will be looking at the impact the reduction will have on savings for the different types of businesses after the first month of implementation.

There have been calls from several quarters for the reduction of electricity rates to be reflected in lower of prices for goods that require electricity for production and preservation.
Central Corentyne Chambers of Commerce President, Tajpaul Adjoda, said the savings from the trimming of electricity rates should at least be passed down to consumers, so that all will benefit from the move by Government.
President Donald Ramotar last Monday announced that the Guyana Power and Light Company (GPL) will be reducing electricity rates by 10 percent effective March 1, in light of the drastic drop in fuel prices on the world market.
Adjoda told this publication that since the announcement was made relatively early, entities in the business of food processing, the production of lumber and beverages and other goods should lower the prices for these commodities.
For consumers, especially those who have occasional and frequent evenings out with friends, a drop in prices for the various beverages would be more than welcome.
And Adjoda is appealing to businesses involved in the production and vending of these products to look at ways in which prices could be cut, so that consumers could have more spending money in their pockets.
A cut in the price of lumber will be a shot in the arm for the Housing Ministry’s drive in helping citizens to acquire their own homes, as it will come in handy, especially for low- income earners.
WATER RATES
There is also talk about the need for water rates to be reduced in light of the announcement by the President. This newspaper made several attempts to solicit a comment from Guyana Water Incorporated Chief Executive Officer, Sheik Baksh on the matter, but was unsuccessful.
The Guyana Manufacturing and Services Association (GMSA) had said it was very relieved that the Government has taken the bold step to reduce electricity rates by 10 percent across the board.
This announcement, the GMSA hopes, is the first step towards significantly alleviating the high overhead costs for production and distribution of “Made- in- Guyana” products.
“Electrical energy is without doubt the most significant input into most, if not all, production processes. Guyana’s large and small- scale producers and exporters have long indicated that the prices for their products have made them [products] uncompetitive in the export market, a situation which has been attributed to high energy charges. Inevitably, this situation led to some contraction in the manufacturing sector,” the body representing manufacturers said.
The GMSA is also anticipating that the imminent reduction in electricity charges would spur industrial growth across all sectors, encourage diversification and birth new enterprises.
“We have been watching closely the world’s responses to the dramatic fall in global fuel prices and we did anticipate that our manufacturers and the business community at large would begin to benefit sooner rather than later. In the same context, we anticipate that the costs for raw materials, transportation and related factors of production would simultaneously decrease,” the GMSA had said.
The 10 percent reduction in electricity charges by GPL will result in its customers being able to hold on to an additional $3 billion annually, in disposable incomes.

(By Tajeram Mohabir)