THE Guyana Power and Light Inc. (GPL) has threatened to disconnect the electricity supply to the Kitty and La Penitence markets today should the Mayor and City Council (M&CC) of Georgetown fail to honour agreements that were reached between the parties recently.

Acting Town Clerk Ms Yonnette Pluck told this newspaper, in an interview, that this threat motivated the Council to convene a meeting yesterday in an effort to strategise how the issues will be dealt with.

The meeting in the Council’s Chamber saw in attendance several members of the Council including Mayor Hamilton Green and his Deputy, Mr. Robert Williams.

The three major options that were decided upon yesterday are to seek an injunction, to have a meeting with the Chairman of the Public Utilities Commission (PUC), which has been a mediator between the two parties, and to seek the involvement of Minister of Local Government and Regional Development Mr. Kellawan Lall.

Pluck said the Council is now waiting to see if these proposals will come into effect as efforts have been made to organise meetings.

She is optimistic that the outcome will be settled amicably.

In a letter sent to the Council from the Power Company, GPL said it is exhausted from the numerous efforts that have been made since 2004 to resolve the M&CC’s indebtedness.

GPL said it would appear that the M&CC does not intend to have a resolution, leaving the Company with no choice but to disconnect the Council’s electricity services and seek legal redress.

Based on the agreements reached last November 21 when the parties met, GPL said in the letter that the Company is still awaiting the exchange of cheques and the joint audit of street lights and meters.

The Power Company also urged M&CC to initiate steps to fulfill its part of the agreement as the Company stands ready to honour theirs.

Confirming what was discussed and agreed between the parties at their last meeting, GPL said it is indebted to the M&CC for rates and taxes in the sum of $113,827,500 for the period January 2005 to December 2009, except for the new Kingston Plant which came on stream in 2009 and has not yet been invoiced by the M&CC.

GPL said it was also agreed that the M&CC is indebted to GPL for electricity charges in the sum of $624,651,278.

It was established, GPL noted, that both parties have the legal right to apply interest charges on arrears; however, it was agreed that both parties would waive any and all such charges.

GPL said it was further agreed that both parties would exchange cheques in the sum of $113,827,500 on or before last November 26.

The M&CC is indebted to the Guyana Electricity Corporation (GEC) for electricity arrears in the sum of $34,005,715, while the GEC is indebted to the M&CC for rates and taxes in the sum of $62,605,127 as at September 30, 1999.

It was further agreed that GPL will settle the net difference of $28,599,412 ($62,605,127 less $34,005,715) owing by GEC and this payment will be done by a second exchange of cheques on or before last November 26.

The letter continued that once the aforementioned has been completed, the M&CC would enter into a payment arrangement to settle its remaining indebtedness and electricity supply to City Hall would be reconnected.

GPL said, too, that in the Council’s letter to Prime Minister Mr. Samuel Hinds, which was copied to GPL’s Chairman, M&CC claimed interest charges in the sum of $476,443,686.

The Power Company said while the municipality has the right to apply interest, it is not in agreement with the charges for the two following reasons:

*In calculating interest, the Council has deducted neither GPL’s payments of $23,912,750 and $22,765,500 for the years 2003 and 2004, nor the amount of $69,788,063 which has been offset against the Council’s electricity arrears in 2004. This offset is equal to rates and taxes owed by GPL from October 1, 1999 to December 31, 2002, according to the Council’s invoices.

*GPL is, and has always been, willing to pay its rates and taxes and have on numerous occasions offered to exchange cheques with the M&CC. Unfortunately, the M&CC has failed to accept GPL’s offers.

Like the M&CC, GPL said it has the legal right to charge interest on arrears as is stated in certain sections of the law.

GPL said it has since calculated interest on M&CC’s arrears in accordance with its License which amounts to $1,357,489,669.