Lethem electricity rate to go down

The Lethem Power Company (LPC) has agreed to decrease the cost of electricity it supplies to residents of the area.

It was agreed between the residents and LPC that the first 15 kilowatt hours (Kwh) of electricity will remain free for residential and commercial consumers. For residential consumers, from 16 – 45 Kwh, the rate will be $55 per Kwh and from 46 Kwh and above, the cost will be $60 per Kwh.

For commercial consumers, from 16 to 100Kwh, the rate will be $55 per Kwh; from 101- 200 Kwh, $60 per Kwh; from 201 – 400, $70 per Kwh and for over 400 units consumed, $75 per Kwh. This is according to resident Carl Parker and Chairman of LPC Board of Directors John Macedo. These new rates replace the previous $75 per Kwh.

Lethem Power Company
Lethem Power Company

This agreement came following a meeting held at the Arapaima Primary School last Wednesday. In excess of 200 residents attended the meeting, according to Parker. He said Macedo was present, along with other members of the board and Regional Vice Chairman Douglas Casimero.

During the meeting, two proposals were made by Parker and resident Carlton Beckles.

Beckles proposed that consumers utilizing 1 – 250 Kwh be classified as residential consumers; 251 – 500 Kwh be classified as small business; 501 – 750 Kwh, medium business; 751 – 1000 Kwh, large business; and more than 1000 Kwh, industrial. This proposal was intended to divide residential consumers from commercial consumers and also to differentiate between industrial, large, medium and small businesses.

However, Macedo said LPC would not get into the finer details in terms of specifying how businesses will be categorized. He said that depending on how much electricity businesses consume, they will determine for themselves, the scale of their businesses.

Parker proposed that since the LPC usually complains about the 15 Kwh which is given free to consumers across the board, it should be discarded. He said that instead residents would pay $20 per Kwh from 1 – 15 units; from 16 – 45, $50 per Kwh, and 46 Kwh and above, residents will pay $55 per Kwh.

These rates, Parker said, would have seen 900 consumers paying an increase of $450, which he said was more economical for consumers as opposed to $75 from 16 units upwards.

He added most of the residents who attended the meeting supported his proposal.

Parker also called for LPC to enter into contractual arrangements with consumers. He added that since the beginning there has never been any written contract between LPC and the consumers. Because of this, Parker claimed, all of the benefits were being accrued to LPC, while the consumers were left with penalties.

The two proposals put forth at meeting were taken by LPC and Macedo later approached Parker and Beckles with LPC’s proposal. As spokespersons for the residents, Parker and Beckles agreed to the LPC’s proposal, based on information provided by Macedo. It was noted that most residents don’t consume over 45 Kwh of electricity per month, Parker said.

However, Parker said, investigations will be carried out to ensure Macedo’s claim is concrete. He added that the Lethem Chamber of Commerce also agreed to LPC’s proposal.

Macedo, when contacted by this newspaper, acknowledged that LPC’s board met the residents of Lethem. He said LPC is currently operating at a loss which has to be narrowed.

Macedo reiterated that LPC previously served a letter to residents informing them of an increase to $75 per Kwh. He further stated that LPC and Lethem residents have agreed that commercial and residential residents will pay different rates.

Parker further stated via telephone yesterday that residents of Lethem have an additional concern. He said that during the meeting last Wednesday, he told the LPC board that it has a strong case if it were to request an increased subvention from the government. He said that at present, Lethem receives $105 million from the government annually.

This figure, he said, is much smaller than what is received in other areas such as Mahdia. He said Lethem is much larger than Mahdia.

An increased subvention can be used to implement proper street lighting, Parker said. He added that proper street lighting is much needed in Lethem, since most areas are too dark at nights. He said residents fear that the darkness will create a haven for the performance of shady activities, thus endangering their safety.

However, Macedo said that while LPC is concerned with the safety of residents, he is not too interested in additional subvention for street lighting in Lethem.

He added that while Mahdia receives more than Lethem, “this is what we receive and we must learn to manage our money and work with what we receive.”

He said street lighting is not the LPC’s responsibility. However, there is currently a system in place where residents can provide their own street lamps and pay $900 per month to LPC for electrical power supplied to each street lamp.

Macedo said that if residents want street lighting, they must approach the local government through the Neighbourhood Democratic council (NDC), and steps will be taken from there. He added that residents must learn to conserve on their electricity.