After operating at a loss in 2009, the Bosai Power Plant recorded profits over the last two years for power generation to Linden, which has received on average double the supply used by the company.
This is according to a one-page audited operation report for the Bosai Power Plant, released yesterday by the Bosai Minerals Group (Guyana) Inc (BMGG).
With the total power supplied to the community almost doubling the supply to the company, the report shows that the power plant charges for the Linden Electricity Company (LEC) over the last three years have been higher than the charges on the BMGG.
The report, released to the media and other key stakeholders in the community including the office of the Regional Chairman Sharma Solomon, comes days after opposition party AFC called for the company to be held accountable for the government’s decision to rollback the electricity subsidy in Linden, resulting in higher tariffs. AFC contended that the electricity is produced “principally” for Bosai’s use, noted that since the company buys fuel duty free, its cost of production has to be far lower than for the Guyana Power and Light Company (GPL).
AFC accused Bosai of taking advantage of the freedom from regulation by charging an exorbitant rate for the surplus electricity it sells. “To mitigate this is why the government had agreed to a subsidy. This practice by Bosai, therefore, must stop. They must say what they charge the distributor and the basis on which they have arrived at that charge,” the AFC said.
According to the report, for 2009, 2010 and 2011, the company saw a loss of US$394,000 ($79,272,798), and profits of US$233,000 ($46,879,599) and US$195,000 ($39,233,999), respectively.
In 2009, it showed that the total power supplied to the community in kilo watt hours (Kwh) was 44,677,084, for which LEC was charged US$8,606,298, in comparison with the 21,035,212 Kwh supplied to the BMGG, at a cost of US$4,082,199. For 2010, 46,882,943 Kwh of power were supplied to the community, at a cost of US$10,213,361, compared with the 21,336,030 Kwh supplied to the BMGG, at a cost of US$4,705,266. For last year, 46,472,970 Kwh of power were supplied to the community, at a cost of US$12,770,968, while 25,295,189 Kwh were supplied to the BMMG, at a cost of US$7,018,473.
The unit cost for power based on duty-free fuel for the period was US$0.20 in 2009, US$0.21 in 2010 and US$0.27 in 2011.
LEC purchases from Bosai and in turn services the Mackenzie end and the Linden Utility Services Coop Society Limited, which distributes to the Wismar shore.
Bosai noted that billing was done in compliance with the Power Sale and Purchase Agreement between Bosai Minerals, Linden Electric Company (LEC) and the Cooperative Republic of Guyana. It further said that the power plant has purchased two more generator sets to cover consumption increase from the community and a dust collector.
A source close to LEC said that from a quick scan of the audit, the figures seemed realistic, based on the money LEC pays to Bosai on a monthly basis. “This is not a hard and fast statement but it seems to be close to reality,” said the source.
The source noted that for the month of June 2012, there has been a noticeable 5% reduction in the consumption of electricity in Linden, with the amount paid to Bosai for June 2012 being $210 million.
Printed copies of the report were seen circulating in sections of the community late yesterday and sparked some discussion.
