He told a news conference there must be a review of the company's obligations and its management contract before the administration would support the increase in light bills.

The President, who had earlier criticised the power company for poor performance, categorically stated that any increase in the tariffs will have to be based on such information, stressing, "we can't ask people to pay for inefficiency."

The GPL initially announced that effective this month charges for electricity would have gone up by 15.89 per cent for both domestic and industrial customers.

But this drew strong criticism from the Government, the main Opposition People's National Congress Reform (PNC/R), the Trades Union Congress (TUC) and the private sector, among other groups.

At a news conference Thursday, Prime Minister Sam Hinds, who has responsibility for the electricity sector, said agreement was reached between him and the strategic investor in GPL, Americas and Caribbean Power limited (AC Power), for the increases to be eight per cent from this instead and for the remainder to be phased in from next month.

But President Jagdeo yesterday said: "I feel personally that unless the issue of the review is completed, to look at the obligations of the company and that of the management contractors...I can't see my Government lending any support for any increase. I can't see my government doing that."

He said his remarks subsumed any other decision that was taken.

Pointing out that "any other position that you hear from my Government, would be subsumed by what I said today," the President urged that the watchdog Public Utilities Commission (PUC), which has responsibility for overseeing the performance of utility companies and ensure they meet their target, look into the matter.

Mr. Jagdeo, who hinted that there are other approaches which he would ask his officers to address, said a "simple straightforward calculation" showed the increased revenue of the GPL is about $1.9B and not the $1.7B which the company has reported, claiming it needs to cover its deficit.

Mr. Hinds said Thursday that the phased increases would have allowed 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.

GPL, in a statement, said this phased approach would have given time for 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 was 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.

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 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.