$1.3B approved to offset fuel price hike at electricity companies

Guyana, like many other countries, has been grappling with the significant increase in the cost of fuel and on Monday, the Parliamentary Committee of Supply approved $1.3 billion to offset that fuel price hike at several local electricity companies.

Of the sum, $927.5 million will be directed to the Linden electricity company; $110.7 million to the Lethem electricity company; $106 million for Mabaruma; $103.2 million for Kwakwani; $76.8 million for Port Kaituma; $49 million for Mahdia and $20 million for Matthew’s Ridge.

Minister within the Ministry of Public Works Deodat Indar said that there has been a 65 per cent increase in the cost of fuel. With those power companies relying on fuel subsidies, he said that additional funds are needed.

The sums allocated to each company will help offset costs for the months of November and December.

Meanwhile, approval was granted for $85.8 million supplementary funding for the Power Utility Upgrade Programme (PUUP).

The PUUP programme aims to improve the safety and reliability of the Guyana Power and Light, Inc. (GPL) electricity distribution system by financing infrastructure specifically focused on the reduction of electricity losses, and improve the overall quality of service.

With the $8.5 million, the government will be able to facilitate the project’s closure.

Both sums are part of Financial Paper No. 3, wherein $44.4 Billion is being sought.

Overall, the government is seeking parliamentary approval for another $47 billion in supplementary funding to offset the costs it incurred by agreeing to absorb the increase in electricity rates and other much-needed works such as the completion of roads and bridges.

Members of the National Assembly are considering this request on Monday.