THE Private Sector Commission (PSC) is calling on the government, the opposition and the management of the Guyana Power and Light (GPL) to immediately institute talks aimed at a restoration of the $5.2B slashed from the subsidy provided for the power company in the 2013 national budget. The PSC in a statement issued yesterday expressed concerned over the proposed 26.7 percent increase in electricity rates, noting that it is the contention of GPL that the purpose of this increase is to meet the immediate need for capital expenditure.

This will provide as an additional 26 mega watt (mgw) of generating capacity, an expanded integrated transmission network linking West and East Demerara and Demerara with Berbice, greatly strengthening the reliability of electrical supply in those areas and the deployment of an additional 28 feeders, allowing an appreciable load reduction of the currently overloaded distribution system

The PSC release stated that, according to GPL, this capital expenditure would have been otherwise sourced from international concessionary loan financing approximating $5.2B from Venezuela, China and the Inter American Development Bank (IDB), had it not been cut from the 2013 budget.

As such, the PSC is urging the government, the opposition and GPL management to work together towards restoring the $5.2B cut that was intended for these capital works.  

The commission is also calling on the government, as shareholders of the company, to take whatever steps are necessary to avoid any increase in electricity charges at this time.  

“We can ill afford to have our economy contract at this point in time, especially with world commodity prices, upon which we depend, showing signs of declining,” it stated.

The PSC is firmly of the view that an increase in charges for electricity would lead to tremendous hardship for the people of Guyana and would negate and outstrip the recent proposed increase in the minimum wage and the relief to workers afforded by the reduction in income taxes.  

According to the release, it would also slow down the economy at a time when businesses can ill afford this and would increase the risk of rampant inflation.

It further noted that the tariff increase would also lead to a drastic decline in the competitiveness of Guyana’s beleaguered manufacturing sector and would mean a cessation of operations for many of the struggling smaller businesses.

The PSC also offered its availability to work with the government, GPL and the parliamentary opposition to resolve this matter in the interest of the country.