As of July 1 this year, Lindeners will begin paying close to the commercial cost of electricity generation for power consumed over 50 Kwh.
“Government recognizes that with this less subsidized tariff structure, Linden customers will use electricity more carefully, reduce consumption significantly, save themselves money and save on the subsidy too,” the government said in a notice in yesterday’s edition of the Sunday Stabroek.
Noting that bauxite pensioners would continue to receive free electricity if they consume 50 Kwh monthly or less, government said those persons would have to pay at a rate of 50 Kwh if they burn more than the free amount.
The newspaper notice says residents, other than bauxite pensioners, on the left bank of the Demerara River would pay at a rate of $7 per Kwh and the right bank $5 per kwh for the first 50 Kwh. If they burn more than that amount, they would have to pay at a rate of $50 per Kwh.
Commercial and industrial consumers on the left bank of the river would pay at a rate of $15 per Kwh and those on the right bank $12 per Kwh for the first 50 kwh. Should consumption exceed 50 Kwh, the rate would be 65 Kwh.
Government said that if account was taken of the current price of diesel, 24% losses to GPL (commercial and distribution) and distribution and commercial costs, the average cost-recovery price to consumers in Linden would have been about $75 to $80 per Kwh.
The notice said that for a residential customer in Linden with a consumption of 45 Kwh, the monthly billing would be $225 per month on the right bank and $315 per month on the left bank. For residential customers with a consumption of 150 Kwh, the monthly billing would be $5250 per month on the right bank and $5350 on the left bank. The latter two charges work out to $35 and $36 Kwh per hour.
The $1.8 billion allocated for subsidizing electricity for Linden this year would all be spent by early September authorities explained in the notice. “Central government desires to spread the remaining subsidy as evenly as possible to each customer to the end of the year…The occasion is being taken to begin the standardization of electricity prices to consumers on both banks of the Demerara River at Linden.
Linden Electricity Company Incorporated supplies power to residents and businesses on the right bank of the river and Linden Utilities Utility Services Co-op Society Ltd to the left bank.
Government promised to make any net savings on the electricity subsidy available to customers in Linden, “by some procedure that customers may propose.”
Since the government announced the plans for the tariff increase in this year’s budget it has been criticised by Lindeners who have complained about poor services and the lack of jobs in the mining town. The government and APNU also clashed over this after Prime Minister Sam Hinds said in Parliament that APNU had agreed with the phased increase in tariffs. APNU denied this and a series of heated meetings were later held in the mining community.
