Gov’t allocates $3B for Linden electricity Co.

Government has allocated $3B to the Linden Electricity Company Incorporated (LECI) and residential customers of the mining town will be paying $5 per Kilowatt-hour (kWh) and businesses $12 per kWh.

This was revelation was made early yesterday morning by Public Infrastructure Minister David Patterson when Parliament’s Committee of Supply continued its consideration of the budget estimates.

Patterson said the LECI would receive a $1B subsidy under his ministry. It would also receive a $2B subvention under the Finance Ministry.

Upon hearing the statement about the charges, PPP/C MP Nigel Dharamlall told the Committee of Supply that the residents of Lethem are paying some $180 per kWh. He stated that he was informed by another parliamentarian who lives in Lethem that they have been paying such an amount and encouraged the government to reexamine rates.

Patterson, however, stated that the residents of Lethem receive the first 15 kilowatts of power for free, after which they are charged $60 per kWh up to 50 kilowatts and $80 per kWh for consumption over 50 kilowatts.

Dharamlall was forced to withdraw his claim as he failed to provide sufficient evidence to back up his claims.

Additionally, the Lethem Power company is listed for a $70M subvention under the Prime Minister’s Office and an additional $35M under the Public Infrastructure Ministry.

While these two areas receive subventions and have a lower charge for electricity consumption, other areas in Guyana are left to pay the standard rate of $48 per kWh.

When questions were asked in reference to electricity for areas such as Wakenaam and Leguan in Region 3, Patterson stated that the government has a keen interest in pursuing green energy and alternative energy sources, such as wind farms, that will cut the cost of electricity drastically.

The opposition members questioned the economic feasibility for the move towards green energy, especially wind farms, as opposed to continuing the Amaila Falls Hydropower Project. Patterson stated that the project was not sustainable in its current form and added that the alternative energy sources are very high priority and the government will pursue it vigorously.