ATTORNEY General (AG) and Minister of Legal Affairs, Mr. Anil Nandlall has stated that the Opposition imposed cut of $5.25 billion from the $10.2 billion subsidy for the Guyana Power & Light Inc. (GPL) in the 2013 National Budget shows that the Alliance For Change (AFC) and A Partnership for National Unity (APNU) are, deliberately, trying to prevent improvement of electricity supply and cause a rise of rates.

Speaking at a press conference in the Georgetown People’s Progressive Party (PP) Freedom House headquarters, Robb Street, yesterday, he pointed out that the provision to GPL was intended to further reduce loss reduction and enhance energy conservation.
He explained that, while GPL generates electricity at a cost of approximately $80 per kilowatt hour (kwh), it, currently, provides the service to Guyanese households at a rate of approximately $60 per kwh.
According to him, in order to prevent raising electricity rates, the Government proposed to provide GPL with $10.255 billion support to avoid the rise. Additionally, the People’s Progressive Party/Civic (PPP/C) Administration was intended to help the utility company expand its distribution and transmission system through the construction of five new sub-stations and to expand two of the existing.
Nandlall said, although $10.255 billion seems to be high, it comes out of an annual subsidy of approximately $13,000 per capita. According to his calculation, the reduction means subsidising each person with $13,000 will be reduced to less than $6,000 individually.
Moreover, he said the 2013 Budget has a subsidy of $2.9 billion for electricity to residents of Kwakwani and Linden, which works out to approximately $72,000 per individual.
He recalled: “Last year, the Government had proposed that the people of Linden and Kawkwani pay a part of this cost but the MPs of APNU and AFC rejected this and the result was a violent reaction that led to death and destruction.”
The AG said it will be interesting to see how the residents of Regions 2 to 6 react to this type of “unequal treatment” as the PPP/C Administration rejects the “unequal treatment” of the people of Guyana by the AFC and APNU.
Meantime, Finance Minister, Dr. Ashni Singh said any right-minded Guyanese would be supportive of the effort to assist GPL in providing a better service to consumers.
He declared “it is shocking” that the Opposition did not see the merit in approving the full subsidy.

Additional investment
Singh pointed to the need for additional investment in GPL and urged that the utmost be done to ensure that it is made.
In addition, he claimed the same Opposition is demanding that electricity users in other parts of the country are provided with allocations so that they can pay rates that are a mere fraction of what GPL charges their customers.
Asked what would now be the way forward in dealing with the reduction in the GPL subvention, the Finance Minister said he would, first be seeking the legal advice of the AG on the validity of the cuts as well as what legal remedies may be available.
Singh said GPL would have to make a determination depending on that advice and, itself, determine, subject to guidance from the Government and its policy, the way forward with respect to these critical investments.
Nandlall maintained though that the final ruling, which Acting Chief Justice Ian Chang is likely to give shortly, would put to rest, in a large way, most of the legal issues which have arisen following the Speaker’s edict.
“I am hoping that all sides will be invited by the Chief Justice, and the occasion will be utilised to put before the Chief Justice the Speaker’s ruling and, hopefully, solicit some form of commentary from him with respect to the legality of the Speaker’s ruling. That will be tremendously influential also in guiding the Government efforts forward,” the AG asserted.
He said every blunt consequence of the cuts to the GPL subsidy would mean more blackouts and higher light bills.