Government says that it is running out of money to subsidize electricity in Linden where the price of power paid by households is less than 10% of costs.
Prime Minister Samuel Hinds, who has ministerial responsibility for energy and electricity, in an open letter to all electricity consumers in Linden says, “Central government is now afraid that this year’s allocated budget could run out by October or November. From then households will receive no electricity or must pay the full price.”
Meantime, in light of this, the prime minister along with representatives of the Ministry of Finance are inviting stakeholders to discuss what can be done to get through 2008 and move onto the road to sustainable electricity rates in Linden.
Hinds stated that “central government has been paying the total costs of generating the electricity distributed in the town of Linden as well as providing from time to time additional support in various ways to meet the needs of transmission, distribution and extension of electrification.”
But this situation is not sustainable in the long term, the prime minister declared.
Since the 1980s, Hinds observed, the then central government decided that a way had to be found so electricity prices in Linden could gradually reach sustainable, economic levels in order that “any quantity of electricity desired by any customer would be available without any question of whether the budget support may be exceeded and avoid any consideration of rationing electricity.”
Since 2000 there have been steady, large increases in the price of fuel, coupled with steady growth of the Linden area. And consequently there have been large increases in the unit cost of electricity and in the total quantity of electricity to be supported, Hinds pointed out.
According to the prime minister, the quantities of money that central government paid for electricity in Linden over the years 2001 to 2007 are as follows: 2001 – $847M; 2002 – $827M; 2003 – 1,156M; 2004 – 1,392M; 2005 – 1,279M; 2006 – 1,669M; and 2007 – 1,742M.
This support, he said, came at the expense of foregoing many desired social programmes whether in Linden or all across Guyana.
Hinds further observed that the budget allocation for Guyana for 2008 is $2,043M. And to the end of April the monthly expenditures have been January – $151M; February – $149M; March – $224M; and April – $210M or $734M for the year. At this rate the allocated budget could run out by October or November.
Then he posed the questions – What is to be done? What are we to do? Subsequently, he proposed that stakeholders meet with him and representatives
of the finance ministry to discuss getting through this year and the way forward for sustainable electricity rates in Linden. A meeting was scheduled for yesterday afternoon in Linden.
“Without question,” he said, “whoever we are, wherever we are, whatever our circumstances, we must use electricity more carefully, more sparingly; we must not waste but must conserve electricity.”
Noting that electricity is a convenient, clean and efficient source of energy, Hinds also acknowledged that it is not a primary source of energy as cheaper sources of energy can do many jobs electricity now does, particularly heating. Kerosene oil and cooking gas are better for cooking, baking and low temperature heating; and there are solar water heaters for hot water systems, Hinds added.
According to the prime minister, in Linden there appears to be significant opportunity to reduce electricity consumption. He added that the average monthly household consumption last year on the Linden grid was 320 kWh while on the GPL grid it was 150 kWh.
