Gov’t to implement electricity tax for large companies on GPL grid as electricity consumption peaks – VP Jagdeo
-Blasts former APNU+AFC administration for lack of investment in energy sector
The government, according to Vice President Dr. Bharrat Jagdeo, will soon be implementing a policy that will see companies that consume large amounts of electricity being taxed, particularly during peak hours.
Dr. Jagdeo made the announcement on Friday at the opening of the West Central Mall at Leonora, West Coast Demerara.
The vice president explained that large electricity consumers, who were self-generating, are now reconnecting to the national grid since the government has been subsidising electricity costs, causing the over-peaking of electricity consumption.
The situation is compounded by the current high temperatures being experienced which has led to higher use of air conditioning units and fans.
As a result, “Our demand now in a single night is 180 megawatts and we only have 174 megawatts of installed capacity, so you have, of necessity, to take some people off the grid,” the VP stated.
The vice president blasted the former APNU+AFC Coalition administration for not making the required investments in the energy sector, citing the scrapping of the 165-megawatt Amaila Falls hydropower plant. This, he pointed out, has led to an increase in the spate of black outs.
He said the now opposition, during its 2015-2020 tenure did not reinvest in new capacity.
In this regard, the VP also announced that government will be investing in additional generation capacity of some 30 megawatts of power, expected before the end of the year.
Dr. Jagdeo made reference to the 300-megawatt Wales gas-to-energy project to come on stream next year, which is expected to significantly improve electricity supply as well as reduce costs.