Agreement on this was reached between Prime Minister Sam Hinds and Americas and Caribbean Power Ltd (AC Power), the strategic investor in GPL.

At a news conference yesterday, Mr. Hinds said the electricity rates for February will go up by 8%, instead of the initial 15.8%. The balance will be phased-in and implemented from March 1.

This will provide time for a public review of the calculations, procedures, the commercial and technical losses and other considerations relevant to the annual adjustment of tariffs by GPL, the Prime Minister told reporters.

GPL, in a statement yesterday, said this phased approach will allow the Government, AC Power and GPL to clarify together the procedures, calculations and other matters relevant to determining the annual adjustment in tariffs.

It said the approach is designed to be consistent with the provisions of the Electricity Sector Reform Act 1999 (ESRA) and GPL's Licence with respect to the annual rate revision process. These arrangements are subject to approval by the GPL Board which it is anticipated will be given, the power company said.

The proposed hikes in the domestic and industrial rates announced late last month have drawn a barrage of criticism from the Government, the Trades Union Congress, the main Opposition People's National Congress Reform (PNC/R) and others.

Mr. Hinds, who has responsibility for the electricity sector and who has come in for criticisms regarding his handling of the electricity utility company, told the news conference in his Georgetown office that he understands how affronted and aggravated many people feel in these circumstances about increases in tariffs.

Through a number of complaints to him personally about meter readings, non-readings, mis-readings and a seeming multitude of errors in the billings by the utility, along with wrongful disconnections and delayed reconnections, he recognised that most of the goodwill that should have been engendered by the improved service during the recent holidays has been compromised.

"Nevertheless, our constant goal must be to have a continuously available, good quality electricity at the least possible sustainable prices (and) arrangements for such we should be prepared to accept once they are justified," he said.

The Prime Minister reiterated a call to all employees of the power company to "do all that they could do to retain the trust and faith of customers and take us through this contentious issue with the minimum of friction and without any loss of our hard won improvements in electricity supply."

All GPL employees must be seen to be working earnestly, helpfully, efficiently and effectively at all times, he said.

"I am hearing people also talking about the Government giving GPL money, particularly in the period which relates to the increased oil prices (but) this was a matter of easing the impact of prices of what consumers had to pay," he argued.

IT'S NONSENSE
"So this talk about Government giving GPL money is nonsense, it's nonsense and the people who're saying it know differently and know better and they are not helping anybody, nor the country, by saying that."

On the question of losses and GPL's seeming inability to reduce losses, Mr. Hinds said this has been a problem with the former Guyana Electricity Corporation (GEC) and it continues to be a problem for GPL, despite reduction efforts by both entities.

He said he not believe, at this point in time, that "any advantage is being taken on us (the Guyanese people)" by GPL. "It may well turn out that the calculation (by GPL) of 15.89% is accurate and it may well turn out that this formulation is not unreasonable and is acceptable," Mr. Hinds said.

But he pointed out that the accuracy and whether the formulation is reasonable has to be confirmed and "depending on the outcome of that, there is also the issue about losses,"

"...we agreed to a certain target (for) reduction in losses. It has not happened so at least we should be ready to discuss...Our position is that we agreed in good faith to certain numbers...it has not happened so at a minimum, let's talk and then when we talk, we (could) come up with a reasonable arrangement."

Mr. Stanley Ming, of the PNC/R, at a news conference yesterday repeated the party's criticism of the increased rates.

He said the Guyanese public would also like to know what the two Government directors on the GPL Board - Mr. Ronald Alli and Mr. Winston Brassington - are doing to represent the nation's interest.

"Have they spoken up to protect Guyanese consumers...?" he questioned and said they should "speak out" without further delay.

GPL Chief Executive Officer, Mr. John Lynn last month announced the proposed increased electricity charges, pointing out that the utility filed papers concerning its annual tariff revision process with the watchdog Public Utilities Commission (PUC).

He said higher rates cover an increase in GPL's assets of 4.75%, increases in salaries and other employment costs.

He said the revenue actually earned by the power company was lower than it should have been, because the proportion of electricity sales under the different tariff categories was substantially different last year compared to 2000.
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