THE Mayor and City Council (M&CC) of Georgetown and the Guyana Power and Light Inc. (GPL) are expected to exchange cheques on Monday to begin the settlement of the current disconnection issue.

Speaking with the Chronicle on the telephone, Chairman of the Public Utilities Commission (PUC), Justice Prem Persaud, said this decision was taken following a meeting with both parties yesterday.

Persaud described the meeting as “very cordial” and said that it is his hope that the two sessions, during which he met with both parties so far, will bring a close to all the “fighting.”

The agreement reached to exchange cheques, he explained, would discharge GPL and the Guyana Electricity Corporation (GEC) of the obligations for rates owing to the end of 2009.

According to him, GPL would issue a cheque to the M&CC for an amount to cover its indebtedness, as well as that of GEC.

He continued that M&CC would likewise issue a cheque to GPL to cover some of their obligations and will prepare a payment plan for any outstanding amount.

This newspaper understands that if everything goes well on Monday, electricity will be restored to all the City Council agencies that were disconnected.

GPL last week threatened to disconnect the electricity supply to the Kitty and La Penitence markets had the M&CC failed to honour agreements that were reached between the parties at a previous meeting.

However, according to reports reaching the Chronicle, subsequent to the intervention of the PUC, the disconnections did not take place.

Reports also indicate that the power to the East Ruimveldt Day Care Centre and to the Health Centre in Albouystown was restored Monday after the meeting with the PUC.

Seeking the intervention of the PUC was one of three options that were decided on by the M&CC at a meeting in the Council’s chamber last December 7, as a result of threats by GPL to disconnect electricity to two municipal markets.

Seeking an injunction against GPL and having the involvement of the Minister of Local Government Mr. Kellawan Lall, were the other options available.

GPL complained recently it is exhausted by the numerous efforts that have been made since 2004 to resolve the M&CC’s indebtedness.

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.

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 is claiming that the calculated interest on M&CC’s arrears, in accordance with its License, amounts to $1,357,489,669.