Dear Editor,
I would like to assure Mr Lincoln Lewis and all who might read his letter in SN of June 22 captioned ‘The PM has not given the Linden communities and interest groups an opportunity to discuss the electricity issue’ that there is nothing vindictive in electricity reform in Linden. Our PPP/C government has always sought to have Linden and indeed all of Region 10 share equitably in the fortunes, whether good and bad, of our country.
As I have said on an earlier occasion, I wish we had on record a Google street map view throughout Linden in 1992 which could be compared with Linden of today. Great improvements similar to what have been accomplished all across Guyana, would be evident.
At a press conference I held on Wednesday, June 20, I sought to present government’s case for the intended reform of the provision of electricity in Linden, clarify some apparent misconceptions and respond to the widest range of questions regarding the provision of electricity across Guyana.
I sought the assistance of the media to challenge and encourage the citizens of Linden to treat electricity differently – carefully, like their fellow citizens on the GPL grid, 50,000 of whom (one out of every three) manage their electricity consumption at an average of about 46kWh per month, while the larger 100,000 residential consumers manage their consumption at an average of about 150 kWh per month.
The new prices in Linden are still very much subsidized. Everyone receives the first 50kWh at existing prices of $5 and $7 per kWh for residential customers; that is, residents in Linden who take hold of and manage their electricity consumption like the smaller 50,000 residential customers of GPL, would pay no more than $250 or $350 per month. This should be manageable.
The new rate for residential customers, for every kWh of electricity burnt beyond 50kWh in a month, is $50 per kWh, still significantly subsidized compared with the full-cost price of $75-80 per kWh in Linden.
Even with this increase, residential customers in Linden who manage their electricity consumption like the larger 100,000 customers on the GPL grid and average about 150kWh per month will be billed no more than about $5,500 per month, averaging about $36 per kWh. Many Lindeners will find this manageable.
I acknowledged that the greatest challenge would be for residents in Linden to change their habits in using electricity; to manage their consumption and stay within their individual budgets like all people must do, like the rest of the country’s citizens have been doing.
I did notice the following day a report in the print media, which regrettably, whether intentional or not, portrayed a completely opposite tone on the press conference – a tone, which at a minimum was not intended, which Mr Lincoln Lewis has seized upon. I refer to the article in SN of June 21, captioned ‘Linden power tariff hike to go ahead‘ and would like to point out that the statement attributed to myself in the first paragraph in relation to the people of Linden specifically that they “will have to manage the best way that they can manage” was taken out of context. In fact, what was published was in effect an abbreviated form of what I said. Readers are asked to refer to the Guyana Times report of June 21, captioned ‘Hinds lays out tariff reform for Linden,‘ which carried the full quotation: “I am saying, the people in Guyana whether in Linden or other parts of Guyana have to manage the best way they can manage and I am further saying that I don’t think we have a significant difference in people situation in Linden taken as a whole and in the rest of Guyana taken as a whole.”
I note Lincoln’s reference to the PUC. Yes, the PUC is there to approve increases in the prices to be charged by utilities and such other service providers as are designated. The PUC has powers to fine and discipline providers, but no less importantly, the PUC is required to ensure that the utility or service receives enough income to sustain itself. For that very reason, it is not appropriate to designate utilities and services which require significant subsidies. Additionally, the PUC is expected to be vigilant against preferential treatment.
As often stated, the costliest electricity or service, is the electricity or service that is not there when we want it. We experienced much of that from the end of the 1970s when, no doubt with good intentions, an expectation of low, subsidized prices, or free service, prevailed. However, the costs incurred in providing goods and services have to be met. Everyone would be worse off with a service that is not sustained and which eventually collapses. How are prices to be kept at the lowest sustainable? How are we to have enough money? Our focus must be on working at whatever we can find and doing it better day by day, improving productivity, quality and timeliness, effectiveness and efficiency.
The reform of electricity provision in Linden and its incorporation into the national grid in a phased manner, is the last step in the transformation of Linden from a company town to a regular Guyanese town. There is no vindictiveness inherent; there is only maturing and timely normalizing.
Yours faithfully,
Samuel A A Hinds,
Prime Minister and Minister of Parliamentary Affairs & Energy
Editor’s note
SN apologizes for truncating the quotation from the Prime Minister.
