-but gov’t to do its best to cushion it
THE Guyana Power and Light (GPL) has forecast an $11billion shortfall for 2012, due in part to an escalation in fuel prices. The disclosure was made Friday at the Company’s Annual General Meeting (AGM) by Company Chairman, Mr. Winston Brassington, who was quoted as saying: “The acceptable 2010 performance of the corporation would be overshadowed by the $11 billion financing gap in its 2012 budget.”
Noting that fuel prices have escalated “from a weighted average of about US$80 per barrel to a projected $120 per barrel in 2012,” Brassington said that based on its licensing agreements, GPL is entitled to a 19 % tariff increase in 2012.
But Cabinet Secretary, Dr Roger Luncheon, anticipating the impact a 19% tariff increase will have on the populace, has disclosed that “government intends to rely on a number of interventions to meet the shortfall.”
He disclosed that government has opted to allow GPL to introduce only bearable tariff increases while seeking parliamentary considerations of subsidies as in 2008.
Additionally, GPL would be expected to pursue more aggressive loss prevention practices and debt recovery, so as to meet the shortfall without undue hardships on Guyanese.