"We shouldn't be made to pay increased tariffs for the deficiencies and mal-performance of (GPL's management). That burden should not be thrust on the tax-payers, the rate payers, the consumers...," he told a post-Cabinet news conference at the Office of the President.

Luncheon said the proposed high increase in light and other bills by the power company is due to managerial deficiency and the management of company are the ones that should be responsible for its impact.

He charged that the biggest management deficiency of GPL is "the failure of the company so far to live up to projected decreases in the loss".

Luncheon said Cabinet has voiced its concerns and has joined those raised by a broad cross-section of Guyanese about the public announcement by GPL of the intended tariff increases from this month.

He further pointed out that the negative impact of managerial deficiencies has affected specifically on the company's financial performance.

"Cabinet agreed with the view that tariff increases related to or arising from such established managerial shortcomings were unconscionable and inconsistent with the established norms," the Government spokesman said.

"It was Cabinet's view that a consideration of these tariff increases would warrant a much closer examination of the linkage between managerial inefficiencies and financial mal-performance of the company," he added.

He told reporters the records will show that up to the time of the public pronouncements of tariff increases for 2002, the Government and Cabinet had been taking public positions in condemning this increase.

Luncheon also recalled that the question of managerial deficiencies with the running of the power company, had on previous occasions, been publicly criticised by the Government.

The Government, the Trades Union Congress (TUC) and the main Opposition People's National Congress Reform (PNC/R) have challenged the extent of the increases the company announced last week.

Chairman of the Public Utilities Commission (PUC), Justice Prem Persaud told the Chronicle yesterday that the watchdog commission will be making a formal request to GPL by tomorrow to stall the announced hikes in electricity rates.

He over the weekend had indicated that the PUC will be probing the proposed electricity rate increases which GPL wants implemented from this month.

He had said that the commission would be making the formal request to GPL yesterday, but decided against this, since "other things" needed to be formulated also before meeting the power company tomorrow.

Persaud noted that under the PUC Act 10 of 1999, the commission is authorised to "investigate the performance standard of the utility company, including its books, to detect whether its performance was safe and adequate."

He said this is in light of the absence of the PUC's direct jurisdiction over GPL's rate fixing.

Persaud explained that GPL Chief Executive Officer, Mr. John Lynn had indicated that the increase was necessitated through the company's operational losses of 40 per cent last year which prompted the commission to request an examination of the company's operational procedures.

As part of the Utility Commission Act, an accountant could be appointed by the commission to oversee the financial operations of the company, but only at the consent of GPL, Persaud noted.

Prime Minister Sam Hinds last week reportedly also wrote Lynn expressing the Government's disappointment that the company wants to raise electricity rates by 15.8% from this month.

The Chronicle understands he told GPL that the Government is unhappy and disappointed by the hike which is far more than what it had expected.

Lynn last week told reporters the proposed higher rates were for residential and commercial consumers and resulted from several factors, including an increase in GPL's assets of 4.7%, increases in salaries and other employment costs.