With the signing of an agreement by the Guyana Power and Light Company (GPL) for the rental of a power ship that will supply some 36 megawatts of power to the national grid, General Secretary of the People’s Progressive Party (PPP), Bharrat Jagdeo has assured the public that there will be no increases in electricity charges during the period that the Powership is in operation.
Speaking at his weekly press conference at Freedom House on Thursday, Dr Jagdeo explained that the government will absorb any additional costs stemming from the rental.
“There will be no increase in the price of electricity because of this rental. The government, at about $44 or $50 per kilowatt hour, is already subsidising the power to people, businesses etc,” he assured.
The Powership is being rented in an attempt to supplement the generation shortfall, which has led to recurrent blackouts. It forms a critical element of the government’s short-term plan to address this shortfall.
Dr Jagdeo further noted, “It is a large sum of money that we use to keep the price of electricity fixed. Since we got into office, we have kept it fixed, in spite of the increase. So, there shall be no increase in the price.”
On Tuesday, President Dr Mohamed Irfaan Ali affirmed the feasibility of this rental, explaining that some of the challenges GPL faces are heightened demand and the lack of capacity.
This temporary arrangement will be in place for two years, essentially until the transformative gas-to-energy power plant comes on stream in 2025.
Already, GPL has paid a mobilisation fee of US$1 million to rent the Powership. In a press release issued on Thursday, the utility confirmed that it will pay US 6.62 cents per kilowatt hour as a monthly charter fee for the powership, and a maintenance fee of 0.98 US cents per kWh, based on electricity generated.
The powership will be located at Everton, Berbice, and is expected to be fully operational and deliver electricity by May 8, 2024.