{"id":3878,"date":"2012-07-15T13:57:36","date_gmt":"2012-07-15T17:57:36","guid":{"rendered":"http:\/\/afcguyana.com\/afcnew\/?p=3878"},"modified":"2012-07-15T13:57:36","modified_gmt":"2012-07-15T17:57:36","slug":"the-linden-electricity-rate-increase-issue-by-gerhard-ramsaroop","status":"publish","type":"post","link":"http:\/\/afcguyana.com\/afcnew\/?p=3878","title":{"rendered":"&#8216;The Linden electricity rate increase issue&#8217; By Gerhard Ramsaroop"},"content":{"rendered":"<p>Historically, the bauxite industry in Linden had to produce excess  electricity in order to facilitate the periodic peak operation of the  famous walking draglines.\u00a0 The excess was then fed into the community  and for many years too, also into the national grid supporting the rest  of the country.<\/p>\n<p><em>Gerhard Ramsaroop<\/em><\/p>\n<div id=\"attachment_187661\"><a href=\"http:\/\/www.kaieteurnewsonline.com\/images\/2012\/07\/Gerhard-Ramsaroop-21.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" title=\"Gerhard Ramsaroop 2\" src=\"http:\/\/www.kaieteurnewsonline.com\/images\/2012\/07\/Gerhard-Ramsaroop-21.jpg\" alt=\"\" width=\"150\" height=\"233\" \/><\/a><\/div>\n<p>When the bauxite industry was allowed to decline by both the PNC and  PPP, the power plant went with it.\u00a0 Since 1992, the PPP Government  invested more than G$48 billion in GPL that was targeted at most of  Guyana except for Linden, where instead they opted for privatisation.\u00a0  As a result, the power plant was run down further, including a turbine  exploding.\u00a0 The Government eventually obtained a settlement, but none of  this money ever made it back into the plant.<\/p>\n<p>In 2006, the plant was given to the Chinese company, BOSAI, as a  write-off.\u00a0 Since then, the people of Linden have been at their mercy,  because the PPP gave BOSAI the power to do whatever it wants.\u00a0 First,  they allowed BOSAI to set electricity prices outside of the Public  Utilities Commission (PUC) which is totally wrong, because the PUC is  the national electricity regulator.\u00a0 This cannot be allowed to continue,  and electricity pricing in Linden must be placed within the remit of  the PUC forthwith.<\/p>\n<p>Second, BOSAI took advantage of the freedom from regulation and charged  an exorbitant rate for surplus electricity.\u00a0 To correct this situation,  the Government agreed to a subsidy, but given their record on  corruption, it is not inconceivable there is some impropriety here.<\/p>\n<p>This practice by BOSAI must stop.\u00a0 They must say what they charge and  the basis on which they have arrived at that charge.\u00a0 Since the  electricity is produced principally for BOSAI\u2019s own use, the applicable  pricing policy should be marginal pricing, meaning only for the cost of  producing additional power, and not total cost pricing.\u00a0 In order to  prevent a heavy rate increase in electricity, the Government must  renegotiate with BOSAI along these lines.\u00a0 BOSAI must also be held to  its commitment to install heavy fuel generators which will further lower  costs.<\/p>\n<p>BOSAI also buys fuel duty-free, and given GPL\u2019s massive losses of 32%,  their cost of production has to be lower.\u00a0 GPL produces at a cost of  G$30 per kWH, while BOSAI charges Linden almost double that! Linden is  not connected to the national grid either.\u00a0 So it makes no sense to  compare Linden\u2019s rate with GPL.<\/p>\n<p>In all of this, the fact must not escape that under the PPP, Linden has  become an even more depressed town, with unemployment estimated at over  70%.\u00a0 Moreover, despite a loss in jobs in the bauxite industry, from  several thousand to only a few hundred today, with very little  alternative job opportunities being created, Linden still suffers from  severe dust pollution from the industry. Nowhere else in Guyana is there  pollution of that magnitude, and it is international norm that there be  some amelioration by the offending industry.\u00a0 This must also be  included in the renegotiations with BOSAI.It is obvious that the PPP is  more interested in BOSAI that the people of Linden.<\/p>\n<p>Development in Linden by the PPP, particularly under the Jagdeo  administration, has been severely wanting.\u00a0 Major contracts are issued  to contractors friendly to the PPP, who are not from Linden, and who  hire very little of the local labour force and procure very little in  the town.\u00a0 As such, the residents from Linden receive little benefits  from the huge profits made by these outside contractors, whose work is  often of the poorest quality. Had Lindeners been meaningfully involved  in these works over the last two decades, Linden today would have had  major contractors hiring more Lindeners, leading to economic growth and  development in the town.<\/p>\n<p>Further, Government initiatives such as the Linden Economic Advancement  Programme (LEAP) only produced minor results.\u00a0 For example, LEAP was  intended as an incubator for small businesses such as computer assembly,  but that never took off, because the Government chose to import  computers from its favoured \u201cbarber shop dealers\u201d for schools and  Government agencies in the region.\u00a0 So when the PPP boasts of how much  they have spent in Linden, while true, it has resulted in little actual  development.\u00a0 Moreover, the PPP has denied Linden access to more than  one TV station.<\/p>\n<p>The PPP suddenly increasing the rate of electricity clearly resulted  from their massive defeat in Region 10 (Linden) in the last elections.  It was political retribution against Lindeners. We must be clear in  saying that nothing about rate increases in electricity for Lindeners  was mentioned by the PPP prior to the election.\u00a0 The PPP ought to know  that it was the same bauxite workers who had joined with the sugar  workers and stood up against Forbes Burnham.<\/p>\n<p>Predictably, the PPP put a racial spin on the issue, saying the  opposition wants to remove the subsidy from the Guyana Sugar Corporation  (GuySuCo) which employs mostly Indo-Guyanese, while demanding the  subsidy remain for Linden, a primarily African-Guyanese community.\u00a0 This  of course, is a heinous lie as the AFC only called for the corrupt and  inept management of GuySuCo to be changed.\u00a0 The AFC voted for and fully  supports the G$4 billion subsidy offered to GuySuCo to preserve the jobs  of the working class in the sugar belt.<\/p>\n<p>The reference to the higher rate of electricity outside of Linden has  racial overtones as well.\u00a0 The PPP has been blatantly spreading lies and  hatred by telling Indo-Guyanese that their resources are being used to  subsidise electricity for African-Guyanese who live in Linden. However,  the fact is that the rest of Guyana, including African-Guyanese enclaves  such as Hopetown, Buxton and Dem Amstel, is subsidising Linden, just  like all of Guyana, including Linden, is subsidising GuySuCo and its  failed US$200 million white elephant Skeldon Sugar Factory. Conveniently  too, they leave out the fact that the high rate is because of GPL\u2019s  extraordinary losses and line transmitting inefficiencies which are  costing the taxpayers in excess of $5 billion annually.<\/p>\n<p>So the fact is not that Lindeners are paying too little, but that the  rest of the country is paying too much for electricity, because business  friends and relatives of the PPP cabal are exempted from paying  electricity.<\/p>\n<p>The AFC will not support the increased rates in electricity at Linden  until the PPP regime provides jobs for its people and the region becomes  developed. In our Action Plan, the AFC had plans to make Linden into  one of the new Economic Frontier towns, and we urge the PPP to put these  ideas into action by aggressively pursuing the following:<\/p>\n<p>\u2022\u00a0\u00a0 \u00a0Foreign investment from a reputable company to develop an alumina plant;<\/p>\n<p>\u2022\u00a0\u00a0 \u00a0Develop the 200,000 hectares of the intermediate savannahs for  citrus, legumes, vegetables, cattle,\u00a0 etc. As the country\u2019s second  frontier for agricultural developments;<\/p>\n<p>\u2022\u00a0\u00a0 \u00a0Intensify block-making capability using lateritic bauxite soil to support the housing industry;<\/p>\n<p>\u2022\u00a0\u00a0 \u00a0Promote furniture manufacturing and value added wood products;<\/p>\n<p>\u2022\u00a0\u00a0 \u00a0Establish a University of Guyana campus in Linden, offering courses  relevant to the developmental needs of Regions 7, 8, 9, and 10.<\/p>\n<p>Finally, we urge the PPP immediately desist from engaging in divisive  politics, including playing the race card, and get down to the business  of governing our country, for all of our people, under this new  dispensation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Historically, the bauxite industry in Linden had to produce excess electricity in order to facilitate the periodic peak operation of the famous walking draglines.\u00a0 The excess was then fed into the community and for many years too, also into the national grid supporting the rest of the country. Gerhard Ramsaroop When the bauxite industry was [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7134,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","ngg_post_thumbnail":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[23],"class_list":["post-3878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latestnews","tag-featured"],"jetpack_featured_media_url":"http:\/\/afcguyana.com\/afcnew\/wp-content\/uploads\/2021\/05\/image001-2.jpg","jetpack_shortlink":"https:\/\/wp.me\/p4F7T1-10y","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts\/3878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3878"}],"version-history":[{"count":0,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts\/3878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/media\/7134"}],"wp:attachment":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3878"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}