The Guyana government has moved to allay concerns among consumers facing electricity blackouts by assuring them of no increase in electricity charges during the duration of an agreement signed with the Guyana Power and Light Company (GPL).
This agreement pertains to the rental of a power ship set to supply approximately 36 megawatts of power to the national grid.
Absorption of additional costs
Vice President Bharrat Jagdeo, speaking during his weekly news conference, emphasized the government’s commitment to absorbing any additional costs arising from the rental.
He highlighted the substantial financial commitment aimed at maintaining stable electricity prices.
Despite facing increased costs, Jagdeo reaffirmed the government’s stance on maintaining fixed electricity rates since assuming office.
Contract with Urbacon Concessions Investments
GPL finalized a contract with Qatar-based Urbacon Concessions Investments, W.L.L (UCI) for a two-year rental of the floating power plant. President Irfaan Ali identified challenges faced by GPL, citing heightened demand and capacity constraints.
Temporary solution until gas-to-energy plant
A government statement outlined that the temporary arrangement would remain in effect for two years, pending the completion of the transformative gas-to-energy power plant slated to come online in 2025.
GPL has already disbursed a mobilization fee of one million US dollars for the rental of the ship.
Charter and maintenance fees
In a statement released on Thursday, GPL confirmed the financial terms of the agreement. The utility company will pay a monthly charter fee of US$6.62 cents per kilowatt hour for the power ship, in addition to a maintenance fee of US$0.98 cents per kWh, based on electricity generated.
Opposition’s call for transparency
The announcement by Jagdeo and GPL follows calls from the main opposition People’s National Congress Reform (PNCR) for transparency regarding the agreement.
Questions were raised about whether consumers would bear the brunt of increased electricity charges, particularly in light of the previous purchase of 17 second-hand generators for US$27 million, boasting an output of 28.9 megawatts.
The ongoing blame game between the government and opposition continues over the responsibility for the state of Guyana’s electricity sector.
