Minister of Housing and Water, Shaik Baksh has dismissed suggestions by Guy-ana Power and Light (GPL) that the water utility appeared to have no financial plan to clear its $340M arrears.

He said that there was a plan but it was being rejected by the power company.

GPL, in a press release on Thursday said GWI was in arrears for three months and owed $340M. At the current rate of consumption, the water company’s outstanding bill will amount to $820M by the end of the year.

The power company had also stated that GWI has been unable to guarantee any significant reduction of its arrears over this period and unless it was able to sustain a payment plan, GPL would be left with no alternative but to cut the water utility’s power supply.

At a press conference he hosted yesterday, Baksh told the media that, “Yes... they do have a payment plan, but the payment plan may have been unacceptable by GPL and that is a different matter.”

Baksh said, the issue of GWI being unable to clear its debts was addressed by the GWI board on Thursday, adding that the board was working with the management and would shortly meet with GPL to work out the details of a payment schedule.

Baksh said the water company had embarked on a countrywide energy audit to ensure that it was getting value for its money.

He said the audit had already made an impact on the amount of money GWI should be paying to GPL.

He could not say how much longer GPL was prepared to wait on GWI to clear its arrears, but declared that the water utility would have to negotiate with GPL for special rates.

On the issue of self-generation by GWI, the minister said, “this has been mooted, but no firm decision has been taken on that.”

But he said at the Shelter Belt location, GWI had a large generator set which could run the entire George-town system but just needed some repairs.

But he warned that self-generation would have to be carefully looked at.

“We would surely have to do a study, this would have to be done in consultation with the Prime Minister, Samuel Hinds who has responsibility for electricity and the government as a whole would have to agree.”

Meanwhile, in a press release late yesterday afternoon, GWI said it would be intensifying its wastage reduction programme countrywide from Monday. The release said GWI was currently faced with a situation whereby about one third of the water supplied to customers was being wasted.

During the campaign inspectors would be visiting customers to inspect taps, plumbing, meter tampering and dripping storage tanks among other areas.

A customer would be given notice to effect repairs in five days and his/her failing to do so would result in the water service being disconnected.