As part of its commitment to cushion the cost of electricity, the Parliamentary Committee of Supply on Monday approved the supplementary amount of $6.6 billion for the Guyana Power and Light (GPL) to help offset rising operational costs.
Fielding questions from the opposition side of the House on the allocation, Senior Minister in the Office of the President with responsibility for finance, Dr Ashni Singh, explained that the sum was to offset expenses incurred by the company in its provision of electricity. Singh reminded the House of President Irfaan Ali’s announcement that the government would absorb all new additional costs in the production of electricity.
“Here in Guyana, the government is not going to allow that increase to be translated to the people of the country. We said to both entities Guyana Power and Light and Guyana Water Inc [GWI] that you are not going to increase by a cent. The government will take up the additional expenditure and fill the gap…,” President Ali announced during the commissioning of a new $141 million well at Lusignan, East Coast Demerara back in March. He made the announcement at a time when there was uncertainty over rising fuel costs and armed conflict between Russia and Ukraine was brewing.
Singh explained as he answered questions from Opposition Member, Volda Lawrence, that GPL has $12 billion in receivables. He noted that many of the outstanding amounts are from public sector agencies. However, despite efforts to stay current, Singh said some agencies are in a difficult financial position. He pointed out GWI as one of the agencies with the highest outstanding balance.
According to the Minister, GPL has been purchasing fuel at a 50% higher price this year compared to last year.
Further, Minister in the Ministry of Public Works, Deodat Indar, stated that fuel prices have for the past year been the “lion’s share” of the company’s operating expenses. He disclosed that this year’s fuel costs increased operational expenses by 11% and accounted for 71% of total operating costs.
Additionally, under the Office of the Prime Minister, a sum of $85.8 million was allocated to the Power Utility Upgrade Programme (PUUP) under GPL. The approved sum will facilitate the project’s closure.
