Gov’t to spend $100M to improve Lethem’s electricity supply – tariff to increase slightly – Prime Minister

RESIDENTS of Lethem and the surrounding Region 9 communities can expect an improvement in their electricity supply within a year, Prime Minister Samuel Hinds told residents as he held a meeting at the Arapaima Primary School on Friday.

The prime minister announced plans to purchase two new 750 Kva power generating sets, at a cost of $25M each, along with plans for a new power station. The station will be sited on relatively high ground in the commercial/industrial area and will be constructed within a year. This decision was taken due to flooding in the community which often affects the present power station, according to the prime minister.
Due to steadily increasing costs, electricity consumers will pay an increase in tariffs, Prime Minister Hinds said. “Presently, if tariffs are calculated, the cost is way below what the actual costs are, and this gap, as the region develops more, is a cost that will increase as more persons demand electrical power”.
It was acknowledged that while persons have the right to self generate power, it is felt that the Lethem Power Company Inc. can generate electricity more cheaply to supply the community.
Currently, according to the prime minister, residents get the first 15 kilowatts free every month, then they pay $45 dollars for the next 45 kilowatts used versus an actual cost of $90 dollars with the next 55 kilowatts charged at $55 dollars per kilowatt. It has been suggested that residents continue to get the electricity “Lifeline” of the first 15 kilowatts free, then pay $52 dollars for the next 45 kilowatts and $65 dollars for the next 55 kilowatts thereafter. Prime Minister Hinds noted, “We must appreciate the fact that rates have not been increased since 2008, and costs of spares and fuel have been increasing over the years”.
Government subsidises the approximately 1,000 residents to the tune of $18M per year, and gives a grant of $105M to the power company for its operations. About 80% of the grant package is spent on fuel alone, and according to the prime minister, this percentage is similar to what is obtained by other electrical power companies, such as the Guyana Power and Light (GPL).
Lethem’s power supply has steadily increased from an average of six hours per day to approximately 22 hours per day, and the prime minister said that this has been one of the factors behind the continuing growth of the community.
“One of the ladies who plants cassava told me that previously she had to hurry home before nightfall to process her harvest, but now she can spend more time in the fields, on the farms, then return to her home where she can use the light from electricity to process her cassava or whatever she harvests”.

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