Banks DIH to save $160M with own power supply
Stabroek News
April 23, 2003
Banks DIH Limited is expected to save $160M a year with the planned installation of a three-megawatt medium speed power-generation system.
This was announced by Clifford Reis, Chairman and Managing Director, during the company's 47th Annual General Meeting (AGM) held at Thirst Park on Saturday.
Charges for electricity supplied to the company by Guyana Power and Light (GPL) have increased steadily from an average of $120M per year in 2000 and $160M in 2001 to $239M in 2002, according to Reis. The company estimates it will pay over $550M for electricity 2003, Reis said. This works out to $46M per month and represents an increase of 130%.
He made the point that when the company's taxes of $2.161B are added to the electricity charges of $550M it makes for a total of $2.711B per year or $7.5M per day inclusive of Sundays and public holidays. This translates to 4 1/2 times the company's net profit and 14 times the dividend paid to shareholders.
A number of other companies are turning to self-generation in light of increasing power tariffs.
