A release from the Office of the President yesterday said the GPL management has failed and should be removed and that the tariff increases are not justified as consumers are being punished for management's incompetence.

The release further stated that the consequence of management's failure has led to increased tariffs, which is a source of much concern and frustration to consumers.

It noted that the Government and others have repeatedly pointed out the weaknesses of management.

Electricity bills are set to be higher from tomorrow, but the move by the power company is under heavy fire by city businessmen and from other sections of society.

GPL said it has submitted to the Public Utilities Commission (PUC) prescribed information showing that energy (kwh) rates will be increased by between 13.9% for residential consumers and 16.6% for commercial users from February 1, compared to rates billed in December last year.

According to Chief Executive Officer of GPL, Mr. John Lynn, "While no one likes to see a tariff increase, we wish to note that the increases are needed to permit GPL to meet expenditures essential to the maintenance and improvement of electricity supply to our customers."

The Berbice Chamber of Commerce and Development Association (BCCDA) yesterday said it unreservedly supports its Georgetown counterpart in its statement on the proposed hike in electricity rates by GPL.

The chamber said the proposed hikes were "scandalous" and called on the various business organisations including the Private Sector Commission, the National Association of Regional Chambers of Commerce and the Guyana Manufacturers Association to protest this unwarranted increase.

It is also calling for the immediate reversal of the announced increase and is urging the Government as the other shareholder of the GPL to do all that lies in its power to put an end to "this exploitation of the people of this country as it does under the guise of privatisation."

The BCCDA in a statement said: "Once again the people of this country are being called upon to subsidise the inefficiency and inability of the (GPL) to provide a reliable and affordable service to the business community and to citizens as a whole.

"This most recent and the previously announced hikes in electricity since the privatisation of the Guyana Electricity Corporation have placed severe burdens on those who can ill afford to pay or obtain their power supplies by self-generation as some of the larger businesses have been able to do."

GPL said the proposed increase is in accordance with rules specified in the Electricity Sector Reform Act 1999 (ESRA) and the GPL Licence which govern the annual tariff revision process.

"For 65% of residential customers (about 74,000 households), the revised tariff will add $550 or less to their monthly electricity bill," Lynn said, adding that this includes 45% of customers - about 52,000 households - who will experience an increase below $300 per month.

According to him, the papers filed with the PUC specify the basis on which the 2003 electricity tariffs will initially be determined. Lynn noted that the annual rate review process was provided in legislation and the licence so that GPL would have sufficient funds, including the ability to raise funds, required to develop the company and to improve Guyana's electricity system.