GEC bills debate put off
by Michelle Elphage
TWO bills to advance the privatisation process of the Guyana Electricity Corporation (GEC) were yesterday postponed to the next sitting of the House to allow opposition queries on the legislation. Leader of the House and Parliamentary Affairs Minister, Mr. Reepu Daman Persaud told members at a 45-minute sitting, that he received a letter from People's National Congress (PNC) leader, Mr. Desmond Hoyte Wednesday, requesting the postponement of the Electricity Sector Reform Bill 1999 and the Public Utilities Commission Bill 1999. Hoyte's letter was written on behalf of the three parliamentary opposition parties - the PNC, the Alliance For Guyana (AFG) and The United Force (TUF). The letter contended that the second readings of the bills should be done with the substantive subject Minister, Acting President Sam Hinds present. "Given the complexity and importance of this Bill and the many concerns of the parliamentary opposition political parties and civic organisations, we are of the firm view that the second reading of this Bill would not be meaningful or productive unless the substantive subject Minister participates in the debate, and addresses issues which are of deep concern to the parliamentary opposition and the public at large," Hoyte's letter stated. "We take this opportunity also to register our profound displeasure over the manner in which the privatisation of an important state entity is being handled", it said. Mr. Hinds, acting for President Janet Jagan who is out of the country for further medical tests, was not in Parliament as the President cannot be there under the law. Persaud said that after reading the PNC leader's letter to the House, he had talks with Hoyte and the other two parties, and they agreed that the bills will come up for debate at the next sitting on July 29, even though Mr. Hinds will probably still not be able to make it. "This is a significant measure. It has to do with an important sector and I'm sure all concerned would like to see the matter proceeded with in a very expeditious and orderly manner," the minister said. "Much of the criticism of the bill is based on unawareness of the merits of the bill and on other aspects of the agreement, thus the opportunity of the meeting with the sector Minister is to reaffirm the Government's commitment to participation to privatisation of this sector", he explained. The agreement is that the opposition parties will meet the acting President during this week to discuss and address the opposition concerns on the two pieces of legislation. Mr. Hinds told the Chronicle yesterday afternoon he was drafting a letter to dispatch to the opposition parties suggesting a meeting at 15:00 hrs today. "I am about writing a letter to Mr. Hoyte and the other leaders of the parties in Parliament, affirming that in accordance with the accord reached in Parliament (yesterday) I am inviting them to a meeting," he said. He said TUF leader Mr. Manzoor Nadir stopped by his office and when he discussed the matter with him, Nadir suggested the meeting time today, which Mr. Hinds is proposing to the other two in his letter. The Electricity Bill, laid in the House early this month, repeals and replaces the two major laws that govern the GEC - the Electricity Act and the Electric Lighting Act. It consists of four major parts and three schedules which the explanatory memorandum says comprehensively reform the electricity sector. There are additional penalties under the new legislation against defaulters in the system. The bill is aimed at creating a modernised regulatory structure for the Government's licensing of power supply by both public and private suppliers. It also contains standards and procedures for monitoring compliance with the terms of licences for electricity supply; for modifying, extending, suspending or revoking licences; and for appealing a suspension or revocation of a licence. The relationship between public suppliers and consumers in areas such as formation of contracts, the charges that can be levied for electricity, billing parameters and dispute resolution between suppliers and consumers are defined. And the Public Utilities Commission (PUC) will be involved in the settlement of disputes, according to the establishment of a regulatory body by law. The electricity legislation also leaves the Government the option of being able to "at fair market value" the share of the public supplier. If the Government does not exercise this right, the supplier is free to sell its business as it sees fit. Mr. Hinds indicated recently that he expected the deal, privatising the GEC, to be concluded by the end of this month. The Government and the Commonwealth Development Corporation/ESBI consortium started negotiations a year ago, and after a series of bottlenecks, were able to hammer out Share Subscription, Shareholders, Management and Operating and Agency agreements. Under these the rural electrification programme will continue, and competition in power generation, including hydropower, will be maintained, officials said recently. The new arrangement also encourages independent power producers to get involved in transmission and distribution, if the consortium is unwilling to do so. The deal maintains the two-year quadripartite agreement reached between the Government, the private sector, the trade union movement and the consumer body. CDC/ESBI is required to provide US$23.5M for its 50 per cent equity in the new company. The money will be disbursed over a three-year period with US$9M the first year, US$6M the following year and the remainder in the third year. Once the deal is clinched, the Inter-American Development Bank (IDB) can release an outstanding US$30M, part of a US$45M commitment given in 1996, to the capitalisation of GEC. Sask Power Incorporated from the Canadian province Saskatchewan, pulled out of a proposed GEC deal early last year, following PNC organised post-elections street protests in Georgetown. The firm cited political instability as the main reason for not being able to conclude the deal as the joint partner with the Government for GEC.
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