Dear Editor,
GPL’s rate increases will serve to further increase inflation, decrease real income and reduce growth.
GPL is a government corporation, and as such its fundamental goal is not to maximise profit. As a government corporation and provider of energy to the national grid, GPL must understand the role it plays in national development.
To set rates that reduce business competitiveness and increase household hardship is shortsighted and counterproductive to the development effort.
Given the bumper VAT revenue in 2007, the government should subsidize GPL rates within a five year comprehensive plan towards exploiting alternative and cheaper sources of energy. The short-term loss in GPL’s revenue will contribute to sustaining growth and real income.
Outside of sound economic arguments of reducing instead of increasing rates, the government should understand that charity begins at home.
It is quite hypocritical to ask the EU to maintain prices for our sugar given the economic realities, while at home we seek to arbitrarily increase electricity rates that contribute to business decline and household poverty.
Yours faithfully,
James Bovell
