..will allow a better power supply, says PM
The Electricity Sector Reform (Amendment) Bill 2010 was passed yesterday in the National Assembly, and Prime Minister Samuel Hinds said its passage will facilitate a better power supply in the country.
The Bill was passed after a debate led by the Prime Minister and following scrutiny of the Opposition.
Leading the Opposition was People’s National Congress Reform (PNCR) Member of Parliament Lance Carberry, who noted that contrary to what was said by the current Administration, the Amendment does not address issues critical to the Guyanese people. Minister of Labour Manzoor Nadir, responded to this and made it clear that in the last 10 years there has been significant development with the supply.
“By any length, we have seen improvement. The bill addresses major problems we have with the supply of power…in spite of what we inherited we have seen progress,” he said.
Nadir noted that one recent investment was the $US3M used to improve the billing system, which ne noted has been enhanced significantly.
On the same note, the Labour Minister pointed out that under the previous administration, over $52M was injected into the sector over a three year period, with support from the Inter-American Development Bank (IDB) which, at the project’s end, said it was inefficiently run.
“The provisions (in the Amendment) will go a long way,” Nadir posited.
Carberry questioned too the matter of theft of electricity and pointed out that poverty stricken persons are among those involved in this practice.
The Prime Minister acknowledged that as much of one fifth of the power supplied is lost to such action, but he said many of those involved in this practice do so for the simple reason that they do not want to pay for it.
He added that there are people in need and the government has noted as much; however he explained that the provision of electricity cannot be done without some cost.
Alliance for Change (AFC) Member of Parliament, Mrs. Sheila Holder, advanced the Opposition’s argument along the same line and pointed out that international institutions have taken the position that the access to such utilities is a right of the people.
She added that the theft of electricity, a risk, is taken by some to facilitate their children with lights so that they will be able to study.
The Prime Minister returned that a project is being presently rolled out in Lethem to provide 15kilowats hours of supply, at no charge to the people, and this can be a model for other areas to facilitate the needs of persons who cannot afford the utility.
However, he said there needs to be a culture change where persons think that electricity should be provided as a right, since, as a developing country, such an act cannot be sustained.
The Prime Minister said the administration has been trying to educate and encourage the public to discontinue acts of theft which increases commercial losses.
He said in most developing countries it is not uncommon for there to be high commercial losses, but Hinds maintained that as Guyana develops, the country has to change the culture that has been adopted in some sections.
“Tough action, a tough stance is often a requirement for change,” he said alluding to the provisions made by the Amendment.
Carberry also pointed out that the variations of the bills are an issue. In this context, he said consumers are willing to conserve, but there must be a programme to show the people, the average consumer, how they benefit.
This query allowed the Prime Minister to expound on the benefits of the pre-paid meter and noted that consumers need to take a hands-on approach to monitoring their own consumption levels.
Hinds noted too that there are no exemptions in terms of who will be prosecuted for breaching the laws.
The Prime Minister said the Amendments were brought to the National Assembly based on 11 years of experience in the electricity sector.
He reiterated that its passage will improve the supply of electricity throughout the country.
Amendments
Essentially the Bill amends the Electricity Sector Reform Act 1999, the Principal Act, in order to regulate the supply of electricity, with changes that are expected to significantly impact the sector.
The Electricity Sector Reform (Amendment) Bill 2010 hones in on seven areas, seven clauses; the first which simply sets out the short title of the bill.
Clause two amends the definition of “independent power producer” in the Principal Act, while clause three amends the Principal Act to allow public suppliers to refuse a supply of electricity to persons who have persistently violated the prohibitions against the illegal diversion of electricity and meter tampering, and otherwise engaged in illegal conduct regarding electricity.
The Prime Minister said this Amendment allows for conviction of persons engaged in such activities three or more times.
Clause four amends the Principal Act to require public suppliers to include within their annual and five-year sustainability programmes, a demand forecast within a 15-year planning horizon, and their plans to meet such demands. It also amends the Principal Act to have public suppliers enhance the information included in programmes.
Hinds said the Public Utilities Commission and The Guyana Energy Agency (GEA) now have the authority to demand that certain issues be spoken to in the development and implementation of programmes.
Clause five amends the Principal Act to clarify that the provision applies only to the electrical installations related to easements, way-leaves and rights-of-way, and not to a public suppliers’ other electrical installation on a private property.
According to the Prime Minister, in this regard the public suppliers have rights only as it relates to the running of distribution networks.
Clause six repeals a section of the Principal Act and re-enacts another section with enhanced penalties for the abstraction, waste, diversion, theft, consumption or other illegal use of electricity; meter tampering; illegal reconnection of a supply of electricity; and aiding and abetting, or conspiring or requesting or receiving payment to commit an illegal act. This clause also requires the payment of fines for such illegal conduct on the day of conviction, and it requires convicted persons to compensate the relevant public supplier for electricity diverted, but not paid for in specific amount.
The Prime Minister said the fines cater for different classification of customers and the minimum fine is $50,000 and includes imprisonment.
He made it clear that employees face penalties that are twice what the customer will be subjected to, including length of time for imprisonment.
The last clause amends the Principal Act to allow the Director of Public Prosecution, the police, a public supplier or any other designated persons to bring proceedings under the Act, in addition to the Minister.
In the case of the current administration, the Prime Minister is the Minister in charge, and he said this way charges can be initiated by persons other than him.
Hinds maintained that the sector will be enhanced with these changes.