In light of criticism by the Rupununi Chamber of Commerce and Industry (RCCI) over a recent hike in electricity tariffs, Chairman of the Lethem Power Company (LPC) John Macedo says the organization is defunct and does not have the authority to speak for the over 250 businesses that receive power from the company.
“The RCCI was unable to hold an election, which was due on March 31, because of the fact that its members have not renewed their memberships and according to the rules of the organisation, if three months lapses without a renewal, the member has lost his/her right to speak as a member of RCCI,” Macedo explained.
Macedo further said that efforts were made to resuscitate the RCCI over the past few weeks and added that several meetings were called and had to be cancelled. “[The power company] has 250 businesses on its grid and five or six persons can’t speak for them,” he noted.
He added that he was reliably informed that 200 persons were invited to a RCCI meeting to discuss the rate increase and less than 13 persons turned up.
Macedo’s comments were in response to a statement from the RCCI, which indicated that some Lethem businesses might be prepared to relocate to Bom Fin in northern Brazil where cheaper power is available, unless the LPC immediately withdraws a recent tariff hike.
However, President of RCCI Daniel Gadjie said the issue has nothing to do with RCCI. He said the reality is that businesses cannot afford the increased electricity tariff, which took effect from July 1st. This new rate, which will see customers pay $60 per kWh after the first 15 kilowatts used and $100 per kWh after 50 kilowatts, followed a long dispute between Region Nine residents and the power company on the electricity cost after they were initially told in January this year that the cost of electricity per Kilowatt Hour (kWh) would have been increased to $75 per kWh after no charge for the first fifteen kilowatts.
Gadjie said he is not aware of Macedo’s accusations and declined to comment further of the state of the RCCI. However, Allison Camacho Treasurer at RCCI, said that up to last Monday, when she left the region, RCCI had approximately four members. She explained that the organisation has not been operational for some time. She noted that since last December, RCCI could not afford to hire office workers and thus has not kept meetings for a while. She confirmed that RCCI planned on holding elections for executive members in March but was not successful because the majority of RCCI’s members were not up to date with the payment of their dues to the organisation.
Camacho added that normally the organisation has 13 executive members and about 40 ordinary members. But she said the numbers dwindled because members did not continue to pay their dues.
When Stabroek News contacted RCCI’s elections committee chairman, he declined to comment further on the matter.
Macedo also argued that Gadjie, during his tenure as Chief Executive Officer (CEO) at the power company, proposed that the industrial community pay $120 per kWh for anything consumed above 120 kilowatts.
Gadjie, however, ignored the claim and instead said that during his tenure at LMPCI, the power company made $19M in revenue and after the rates were increased in February of this year, the power company made the same amount in revenue. “We are not denying that [the power company] needs additional finances, we are just saying that businesses can’t afford this increase,” Gadjie said.
He added that the fact that the company made the same amount in revenue following an increase in electricity cost shows that consumers either conserve on electricity used or relocated and the power supply was disconnected.
Gadjie argued that an increased electricity tariff does not guarantee an increase in revenue for the power company. Gadjie added that in Brazil, the cost for electricity is $28 per kWh, which would be more feasible for Lethem businesses.
