Minister urges Linden utility to reverse hike in electricity tariff

Minister urges Linden utility to reverse hike in electricity tariff
Minister urges Linden utility to reverse hike in electricity tariff

With no increase in the cost to generate electricity in Linden, the Interim Management Committee of the Linden Utility Services Cooperative Society Limited (LUSCSL) was urged by Labour Minister, Joseph Hamilton, to rescind its management’s decision to increase the tariff to consumers.

“I urged the IMC to rescind that adjustment… the cooperative is not paying any additional dollar for electricity and there should be no increase in rates,” Hamilton told Stabroek News in a telephone interview yesterday. Stabroek News was told that in the latter part of 2022 the LUSCSL increased electricity tariffs for regular consumers.

Hamilton explained that the increases varied among customers as some pay $160 per kilowatt while others pay $186 or $205. He said that the rationale by management on the increase was baffling to him since the government had said that it will not increase the cost of electricity. He noted that the increase was instituted without any input from the IMC. “Generally, we are subsidizing the cost for electricity in Linden. There is no reason for the people of Linden to pay an increase,” he emphasised.

According to the Minister, BOSAI’s electricity generation is supplied to the citizens on the eastern side while the LUSCSL purchases subsidized electricity from the Linden Power Company. During his visit to Linden, Hamilton said that persons complained to him of having to pay increases in electricity.

“The management has no authority to increase the cost. They have to bring that to the board, or in this case, the IMC and deliberate, after which it has to come to government for that request to be granted,” Hamilton said.

He stated that if the co-op was looking to increase its revenue stream, they have at least three options. He said that the Brazilian company, Constructora Queiroz S.A, which is constructing the Linden-Mabura Road has signalled its intention to purchase power from the co-op. He noted that previously the Guyana Telephone and Telegraph Company paid to use the poles of the co-op but that arrangement no longer exists. He said he encouraged them to re-engage the company and begin fresh negotiations.

Hamilton said that he informed the IMC to consider going after moneys owed to them. “The Linden Town Council owes the co-op millions. If they… start going after those money they will be able to have a better income flow,” he said.