By the end of the year, two new generators should be installed at Lethem to boost the power supply in the growing border township and a new facility will be constructed to replace the current flood-prone Lethem Power Company office.
The new generators along with the three currently in Lethem will be able to produce over two megawatts of power – way above the current consumption of half megawatt of electricity by the town, President of the Rupununi Chamber of Commerce (RCCI), Daniel Gajie told Stabroek News. He said that Prime Minister Samuel Hinds made the disclosure last week during a visit to Lethem.
Lethem has suffered from chronic power problems over the past several years but at the moment, the electricity supply has stabilised with the community receiving above 23 hours of power per day, Gajie said. He said that two generators are operating with one on standby.
According to Gajie, the Prime Minister said that the new generators should be installed by the end of the year. They will be more than enough to meet the community’s need, he said. In addition, Gajie said that residents raised the need for the power company’s office to be relocated since it has been affected by high floodwaters in the past and they got a positive response. “They (government) are going to finance a new power station,” he said. The new power station will be located on higher ground closer to the industrial area.
The cost of the new modern facility will be about $100 million while the two generators will together cost about $50 million, the RCCI president said.
Gajie said that the Prime Minister also hinted at a possible increase in electricity tariffs for the town. He said that they asked that this be placed on hold until the new generators are in place. The businessman said that Hinds alluded to a 15% increase in tariffs. He noted that since 2009, the tariffs have not been increased. According to Gajie, the average cost per kilowatt hour that a resident pays is $50 with some paying $45 and others paying $55. He noted that it costs $93 to produce one kilowatt hour of power in Lethem and government subsidizes this cost. The fuel subsidy this year was $105 million, he said.
Gajie also said that Hinds disclosed that there are three entities interested in rehabilitating the Moco Moco hydroelectricity project. However, he reported that the Prime Minister said that government would have to have more discussions with the individuals. He said that Hinds did not indicate the parties interested in the venture. Over the years, since the Moco Moco hydroelectricity plant was put out of commission by a landslide in July 2003, the border community has experienced a problematic power supply. There have been other proposals spoken of in the past to rehabilitate the plant but nothing has come out of those discussions.
